Pick n Pay Stores (PIK) H2 2025 earnings summary

Executive summary

• Achieved significant stabilization and operational turnaround, with leadership renewal and a focus on core retail capabilities.

• FY25 marked a turning point with recapitalisation, unlocking Boxer value, and profit recovery in Pick n Pay.

• Group turnover and profit met forecasts; Pick n Pay trading loss reduced ahead of guidance.

• Boxer IPO completed, driving operational momentum and market share gains.

• Management is focused on sustainable growth, customer experience, and renewed investment in people and technology.

Financial highlights

• Group turnover reached R118.6bn for 53 weeks, up 3.2% year-over-year; Pick n Pay turnover held steady at R71.2bn despite store closures.

• Group trading profit improved to R1.8bn (margin 1.5%), up from R0.4bn; attributable loss before tax reduced to R0.7bn from R2.6bn.

• Headline earnings per share loss improved by 64.3% to -61.54c; EPS loss improved by 80.9%.

• Net cash position of R4.2bn, a turnaround from net debt of R6.1bn in FY24.

• Omnichannel sales up 44.6% year-over-year, with strong growth in ASAP and Mr D platforms.

Outlook and guidance

• Management expects further operational cash generation improvements and aims for break-even in FY28, though timing is dynamic.

• Boxer segment expected to continue trading profit growth as per guidance.

• FY26 Group capex guidance of R2.3bn, with Pick n Pay capex increased to R1bn for key store refurbishments.

• Cash burn is expected to decrease, with ZAR 600 million interest savings and no immediate return to net bank debt.

• FY26 Pick n Pay trading profit improvements expected to be incremental; H1 FY26 trading loss anticipated due to seasonality.