Boxer Retail (BOX) H2 2025 earnings summary

Executive summary

• Achieved a highly successful IPO in November 2024, raising R8.5 billion and listing on the JSE and A2X, marking the largest South African IPO in eight years.

• Delivered double-digit turnover growth and consistent market share gains, with trading margin exceeding IPO guidance.

• Expanded store footprint by a net 48 stores to 525, creating 2,900 new jobs and launching the Boxer Rewards Club.

• Maintained a disciplined, low-cost operating model, reinvesting efficiency gains into lower prices and customer value.

• Embedded sustainability and ESG into operations, focusing on food security, climate action, and responsible consumption.

Financial highlights

• Turnover increased by 13.2% to R42.3 billion (10.4% on a pro forma 52-week basis), with like-for-like sales growth of 5.6%.

• Trading profit rose 9.9% to R2.3 billion (7.0% on a 52-week basis), with a trading margin of 5.5% (5.4% on a 52-week basis).

• Gross profit grew 14.3% to R9.1 billion, with gross margin up 0.2 percentage points to 21.4%.

• Net debt (excluding leases) at R180 million, equating to 0.1x net debt to EBITDA (pre-IFRS 16).

• ROIC at 25.5% (73.6% excluding IFRS 16), sector-leading in South African food retail.

• Headline earnings per share (HEPS) declined 11.8% to 413.76 cents due to share dilution from the IPO.

• Capital investment totaled R976 million, with 61% for expansion and 39% for maintenance.

Outlook and guidance

• Targeting 60 new store openings in FY26 (25 Superstores, 35 Liquor stores) and capex of approximately R1.2 billion.

• Anticipates sales growth in the low teens for FY26, with moderate trading margin pressure due to annualisation of listing costs and supply chain investments.

• Plans to initiate dividend payments in FY26, targeting a 40% payout of headline earnings.