Pick n Pay Stores (PIK) H1 2026 earnings summary

Executive summary

• Group turnover rose 4.9% year-over-year to R58.8 billion for H1 FY26, with Boxer segment up 13.9% and Pick n Pay segment up 0.1%.

• Trading profit increased 273.5% to R310 million, driven by Boxer's strong performance and improved Pick n Pay gross margin.

• Headline loss reduced by 45.3% to R439 million, reflecting profit recovery initiatives and recapitalisation benefits.

• Store reset program nearly complete, with most underperforming stores closed or turned around; 65 loss-making stores converted or closed by end FY26.

• Strategic priorities include strengthening the customer offer, accelerating like-for-like sales, and establishing a future-fit business.

Financial highlights

• Group turnover reached R58.8bn, up 4.9% year-over-year (like-for-like 4.7%).

• Trading profit rose to R310 million, with EBITDA at R2.27 billion for H1 FY26.

• Headline loss per share improved 56.2% to 59.77 cents; basic loss per share improved 52% to 67.53 cents.

• Group net cash (excluding leases) at period-end was R5.1 billion, up R885 million since FY25 year-end.

• Group invested R1.0 billion in capital projects, a 64% increase year-over-year.

Outlook and guidance

• FY26 trading loss expected to be broadly in line with FY25; break-even at trading profit after lease interest targeted by FY28.

• Positive operational leverage anticipated from FY27 as future-fit initiatives take effect.

• Like-for-like sales growth in Pick n Pay South African supermarkets post-period-end remains in line with H1 FY26.

• No dividend will be declared until sustainable profitability is achieved.

• CapEx for FY26 expected at R2.2 billion, split equally between Pick n Pay and Boxer.