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Audited annual financial results for the 53 weeks ended 2 March 2025
Boxer Retail Limited
(formerly Boxer Retail Proprietary Limited)
Incorporated in the Republic of South Africa
Registration number: 2024/392006/06
JSE and A2X share code: BOX
ISIN code: ZAE000339891
("Boxer")
AUDITED ANNUAL FINANCIAL RESULTS FOR THE 53 WEEKS ENDED 2 MARCH 2025
53 weeks to 52 weeks to
Rm 02 March 2025 25 February 2024
FY25 FY24 % change
Turnover 42 344 37 419 13.2
Trading profit 2 308 2 101 9.9
Trading profit margin 5.5% 5.6%
Profit before tax before capital items 1 941 1 850 4.9
Headline earnings 1 407 1 408 (0.1)
Headline earnings per share (HEPS) - cents 413.76 469.33 (11.8)
Earnings per share (EPS) - cents 406.70 461.67 (11.9)
Pro forma FY25 (52 weeks) 52 weeks 52 weeks
Turnover 41 304 37 419 10.4
Trading profit 2 248 2 101 7.0
Trading profit margin 5.4% 5.6%
Highlights
- Highly successful JSE listing on 28 November
- 48 net new stores opened to take the Boxer retail estate to 525 stores
- Like-for-like sales growth of 5.6% (52/52w basis)
- Trading profit growth of 9.9% and 17.0% when excluding non-cash gains on derecognition of Pick n Pay financial guarantee
- 5.5% trading margin (5.4% on a 52w basis) ahead of Pre-listing Statement 5% guidance
- 2 900 jobs created, to take total employment to 31 906 employees
- FY25 Net debt (excluding leases)1 of R180 million, equating to just 0.1x Net debt to EBITDA (pre-IFRS 16)1
- Return on Invested Capital (ROIC)1 a sector-leading 25.5% (73.6% ex IFRS 16)1
Introduction
FY25 represented a milestone year for Boxer, with the Group completing its 28 November IPO whilst also delivering strong FY25 trading profit growth. Boxer
is excited to be listed on the JSE and looks forward to creating value for all stakeholders by driving long-term growth through staying faithful to our
vision of being the People's Champion by continuously fighting for low prices for our customers.
Boxer's successful discount model is based on driving a self-reinforcing virtuous circle of driving volume growth through giving customers great value for
money and serving them respectfully via efficient logistics and systems, whilst simultaneously delivering store expansion which further drives volumes and
allows even better prices for our customers.
For the 53 weeks ended 02 March 2025, Boxer turnover grew 13.2% to R42.3 billion. Trading profit increased 9.9% to R2.3 billion, at a trading margin of
5.5%. Trading profit year-on-year growth was negatively impacted by non-recurring non-cash gains on the derecognition of a Pick n Pay financial guarantee in
the prior year. Excluding this impact FY25 trading profit growth would have been 17.0%.
Boxer reports on the retail calendar of trading weeks, by which each financial year is an exact 52-week period of trading weeks from Monday to Sunday. The
result is the loss of a day per calendar year. These lost days are taken into account by reporting a 53-week financial year approximately every six years.
In line with this methodology, FY25 is a 53-week year. In order to facilitate comparison with FY24 on a 52/52-week basis, Boxer has provided pro forma
turnover and trading profit, which strips out the impact of the additional week1.
On a pro forma 52/52w basis, turnover increased by 10.4% and trading profit increased by 7.0% to R2.3 billion. Excluding the impact of the derecognition of
the Pick n Pay guarantee, 52/52w trading profit growth would have been 14.0%.
Profit before tax before capital items increased by 4.9% to R1.9 billion, below trading profit growth, because of net finance charges increasing 46.2%
year-on-year to R367 million. FY25 headline earnings was flat at -0.1%, due to a 3.5% increase in the effective tax rate to 27.5%. HEPS declined 11.8%
year-on-year as a consequence of a 13.4% increase in the weighted average number of outstanding shares due to the dilution from the 157.4m shares issued in
the IPO.
Shareholder distribution
As part of the restructuring associated with the IPO, Boxer declared dividends totalling R9.3 billion to Pick n Pay before the IPO. In line with the pre-
listing statement, Boxer has not declared a FY25 final dividend, and maintains its intention to pay out 40% of headline earnings per share from FY26. Boxer
intends to declare an interim FY26 dividend at the time of the H1 FY26 result.
Outlook
Boxer remains focused on creating long-term value by compounding earnings growth at a high ROIC over multiple consecutive years. This is to be achieved by
targeting annual store growth of at least 25 Superstores and 35 liquor stores per year, whilst striving to maintain mid-single-digit like-for-like sales
growth.
While the FY25 trading margin came in well ahead of the 5.0% medium-term trading margin guidance, Boxer continues to anticipate moderate margin pressure
from the annualisation of the guided incremental costs associated with being a listed entity, an initial profit drag as the Tongaat DC is brought onstream,
and from gross margin reinvestment where necessary to drive the competitiveness of the customer offer.
Shareholders are reminded that Boxer's FY26 WANOS will increase by c.34% to fully account for the IPO share issue. This will provide a drag on FY26 earnings
per share, and likely result in an FY26 year-on-year HEPS decline. The impact on H1 FY26 year-on-year HEPS growth will be even more acute given that the IPO
share issuance occurred during H2 FY25 and therefore did not impact H1 FY25 WANOS. Boxer's H1 FY26 WANOS will increase by c.52% year-on-year, with the
result that H1 FY26 EPS and HEPS will decline by greater than 20% year-on-year. The expected earnings dilution is purely a function of the chosen IPO
transaction structure, and Boxer suggests shareholders focus on absolute FY26 earnings growth, which the board feels reflects a more appropriate view of
operational performance.
Given the moderating global economic outlook and competitive pressure in the SA food retail market, Boxer currently anticipates low-teens FY26 sales growth.
Regardless of the state of the economic cycle, Boxer is resolutely focused on execution to capture its substantial long-term structural growth opportunity,
and this remains Boxer's primary focus.
James Formby Marek Masojada
Chairman Chief Executive Officer
12 May 2025
1Refer to 'Pro forma financial information' under Additional Information.
ABOUT THIS ANNOUNCEMENT
This announcement is the responsibility of the directors. It is only a summary of the information contained in the consolidated annual financial statements
and does not contain full details. Any investment decision should be based on the consolidated annual financial statements, published and
available at: https://senspdf.jse.co.za/documents/2025/JSE/ISSE/BOXE/FY25AFS.pdf
Ernst and Young Inc, the Group's independent auditor, has audited the consolidated annual financial statements of Boxer Retail Limited from which this
announcement has been derived and has expressed an unmodified audit opinion on the consolidated annual financial statements. This announcement itself is not
audited and therefore the audit report does not cover this announcement.
The consolidated annual financial statements are available on the Boxer Investor Relations website at: www.boxerinvestor.co.za/results.
FORWARD LOOKING INFORMATION
This report contains certain forward-looking statements which relate to the possible future performance and financial position of Boxer. All forward-looking
statements are solely based on the views and considerations of the directors. These statements involve risk and uncertainty as they relate to events and
depend on circumstances that may or may not occur in the future. Boxer does not undertake to update or revise any of these forward-looking statements
publicly, whether to reflect new information, future events or otherwise. These forward-looking statements have not been reviewed or reported on by Boxer's
external auditors.
PRO FORMA FINANCIAL INFORMATION
Certain financial information presented in this announcement and the consolidated annual financial statements, including the 52-week sales and trading
profit information presented above, constitutes pro forma financial information in terms of the JSE Limited Listings Requirements. The pro forma financial
information is the responsibility of the Board of Directors and is presented for illustrative purposes only. Because of its nature, the pro forma financial
information may not fairly present Boxer's financial position, changes in equity, results of operations or cash flows. The reported amounts and adjustments
are extracted without adjustment, from the audited financial statements or underlying accounting records of Boxer for the periods ended 25 February 2024 and
2 March 2025, respectively. An assurance report (in terms of ISAE 3420: Assurance Engagements to Report on the Compilation of Pro Forma Financial
Information) has been issued by the Group's auditors in respect of the compilation of the pro forma financial information included in this announcement.
The pro forma financial information should be read in conjunction with this assurance report.
RESULT WEBCAST
The Group will hold an in-person and online results presentation at 8:30am this morning. All interested stakeholders are invited to watch the webcast which
can be accessed using the following link: www.corpcam.com/boxer12052025. The slides accompanying the result presentation, which will include information on
the Group's strategy, will be available on the Boxer Investor Relations website at www.boxerinvestor.co.za/results shortly before the commencement of the
presentation. A playback of the webcast will be made available on our website approximately 2 hours after the presentation.
By order of the board
Westville
12 May 2025
Sponsor: RAND MERCHANT BANK (a division of FirstRand Bank Limited)
ABOUT BOXER RETAIL LIMITED
Boxer Retail Limited is a leading South African grocery, liquor and building materials retailer, with a strong focus on discount grocery retail. Boxer has
over 500 stores and employs in excess of 30 000 employees. For further information on Boxer, please visit www.boxerinvestor.co.za.
DIRECTORS OF BOXER RETAIL LIMITED
Executive directors
Marek Masojada (CEO), David Wayne (CFO)
Non-executive directors
James Formby (Chairman), Sean Summers
Independent Non-executive directors
Charlotte Maponya (Lead independent Non-executive director), Cindy Robertson, Dineo Molefe, Jesmane Boggenpoel, Leon Lourens
CORPORATE INFORMATION
Registered office
41 The Boulevard, Westend Office Park, Westville 3630
Company Secretary
Vaughan Pierce
Email address: CompanySecretary@boxer.co.za
Investor relations
Stephen Carrott
Email address: stephencarrott@boxer.co.za
Sponsor
RAND MERCHANT BANK (a division of FirstRand Bank Limited)
Transfer secretaries
Computershare Investor Services Proprietary Limited
Date: 12-05-2025 07:05:00
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