Wrap Text
Unaudited interim condensed consolidated results for the 26 week period ended 1 September 2013
PICK N PAY STORES LIMITED
(the Group or the Company)
INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA - Reg. no. 1968/008034/06
JSE share code: PIK
ISIN Code: ZAE000005443
Pick n Pay Holdings Limited (Pikwik)
INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA - Reg. no. 1981/009610/06
JSE share code: PWK
ISIN Code: ZAE000005724
Unaudited interim condensed consolidated results for the 26 week period ended 1 September 2013
KEY INDICATORS
Normalised
trading As
calendar Comparable previously
pro-forma pro-forma reported
2013 2012 change 2012 Change
Total till sales R35.0 billion R32.3 billion 8.1% R32.7 billion 6.9%
Turnover R30.1 billion R28.0 billion 7.5% R28.3 billion 6.2%
Gross margin 18.1% 17.7% 17.6%
Trading profit R317.5 million R235.6 million 34.8% R275.7 million 15.2%
Basic earnings per share 40.05 cents 31.88 cents 25.6% 37.73 cents 6.1%
Headline earnings per share 40.81 cents 30.06 cents 35.8% 35.91 cents 13.6%
EBITDA R810.5 million R697.3 million 16.2% R737.4 million 9.9%
Dividend per share 14.80 cents 14.75 cents 0.3%
REVIEW OF OPERATIONS
The Group implemented a 52-week financial reporting calendar in February 2013. The 2014 interim financial
period consists of 26 weeks, which is two trading days fewer than the comparative period last year. Interim
results in this commentary have been presented on a comparable pro-forma basis with adjusted prior period
numbers, for meaningful comparison. This has not been reviewed or reported on by the external auditors and
is prepared for illustrative purposes only and is the responsibility of the directors.
Improved performance
The Group has delivered an improved financial performance on the previous period, growing total Group till
sales (for owned and franchise stores) by 8.1% in an exceedingly competitive market. We are encouraged by the
like-for-like till sales growth of 4.0%, against 3.2% last year, which is a strong indication that we are
stemming recent market share losses.
We are serving more customers than ever before, increasing our customer count by 3.3% during the period,
while processing 380 million transactions through our tills.
The increase in turnover, supported by an improved gross margin and tighter fiscal control has delivered
headline earnings per share which are up 35.8% on a comparable basis.
A stronger business
We believe that we have reached the point where the greater part of the structural change and its associated
costs are behind us. We are now able to build on the capabilities that have been put in place and begin to
realise the potential of our investments. Our energy and focus has substantively returned to the basics of
good retailing. There is no area of the Group that has not been inspected in the past six months and we made
improvements in all of them.
We were extremely proud to be voted the number 1 grocery store and overall favourite retail brand in South
Africa in the Sunday Times Top Brands awards.
This is a strong endorsement by customers of our brand, our offering, the service we provide and the hard
work we have put in over the last few years. Yet we remain far from satisfied with our performance and know
that we can and will continue to make substantial improvements to the shopping trip.
We have made good progress across the supply chain, resulting in an enhanced product range, improved stock
availability and better quality fresh produce. We continue to support our customers and have invested some
of our margin improvements back into price through more targeted and relevant promotions, keeping our food
selling price inflation at 4.2% for the six months (2012: 7.5%), well below food CPI of 6.4% for the period.
Although we are confident that our stores are starting to improve, reducing our operating costs remains a
priority. We will take the action necessary to remain agile in this competitive market and deliver improved
returns to shareholders.
Clearer way forward
We know there is significant potential in the business and we have a clear plan to realise it. More than
ever, our aim is to meet the needs and aspirations of our customers, staff, communities and shareholders.
OPERATIONAL REVIEW
We have broad appeal across all income groups, from lower income communities to the most affluent
households. The key to success in retail - and the heart of any good business - is to appeal broadly, to
exclude nobody, and to move hand-in-hand with customers needs and aspirations. With its rich history of
inclusiveness and its deep well of customer loyalty, Pick n Pay is uniquely positioned to do this
successfully.
We opened 44 new stores across all formats during the period, and closed nine under-performing stores in
order to maintain the quality of our offering.
The Group is managed through two divisions, the South Africa Division and the Africa Division. The South
Africa Division operates in various formats under the Pick n Pay and Boxer brands. The Africa Division is
responsible for the Groups expansion into the rest of Africa and operates in Namibia, Lesotho, Swaziland,
Mozambique, Mauritius, Botswana, Zimbabwe and Zambia.
We opened 38 stores in South Africa during the period. There is ample opportunity to expand our footprint
in South Africa, particularly into areas where we have not yet traded. We were delighted to open stores in
Chatsworth, KwaMashu, Hammarsdale, Burgersfort, Pongola, and Elim during the period, all areas in which
Pick n Pay has never operated before.
The Africa Division continues to grow steadily with six store openings across Zambia, Mozambique, Namibia
and Zimbabwe during the period.
We now have more than 1 000 stores, consisting of 594 owned and 433 franchise stores, across multiple
formats and in eight countries. In addition, 51 stores are operated in Zimbabwe, by our associate TM
Supermarkets, two of which trade successfully under the Pick n Pay banner.
While the Group remains focused on our core South African business, we continue to look for profitable and
sustainable growth opportunities in the rest of Africa.
We are encouraged by the progress we have made during the period under review:
We have improved efficiencies and reduced costs at our distribution centres. Grocery volume through
our central distribution channel is up 16.4%, with an overall reduction in cost per case of 2.4% at
Longmeadow. We have improved the stock availability of our top 1 000 product lines by 3.3%, growing
the sales of these lines by 9.2%;
Working closely with suppliers we are improving product ranges, reducing prices and providing more
targeted promotions;
We have refreshed our smart shopper loyalty programme, making it simpler for customers to use, with
instant rewards and more benefits, and have reduced the operating costs of the programme by 20%;
We have grown Pick n Pay Online into one of South Africas top online businesses, with turnover
growth of 24.0% on last year and an increase in online shoppers of 15.8%. We are the first retailer
in South Africa to offer 1 hour delivery time slots for groceries;
Our investment in information systems has resulted in fundamental improvements in our forecast and
replenishment capabilities, an enhanced financial reporting platform and the roll-out of a world
class point of sale system;
We have made good progress with the centralisation of our finance and administration functions. This
will reduce cost and increase efficiency by eliminating the duplication of processes around the
country; and
We have reviewed and restructured our support office function to create a more effective and efficient
organisation.
FINANCIAL REVIEW
The Group implemented a 52-week financial reporting calendar in February 2013. The 2014 interim financial
period consists of 26 weeks, beginning 3 March 2013 and ending on 1 September 2013, which is two trading
days fewer than the comparative period. In order to ensure accurate comparability we have presented the
prior period numbers to accord with the new financial calendar in this commentary. A comparison on this
basis gives a more accurate and relevant assessment of our performance. Please refer to the table presented
at the beginning of this announcement for published prior period numbers.
Turnover
Group turnover increased by 7.5% to R30.1 billion (2012: R28.0 billion). Like-for-like turnover growth was
3.1% and new stores contributed 1.7% to our trading space and 4.4% to sales.
Point of sale turnover growth is more in line with the retail market, with total till sales from both owned
and franchise stores growing by 8.1% on last year (like-for-like growth of 4.0%).
Pick n Pay internal food price inflation for the period was 4.2% (2012: 7.5%), against CPI food inflation of
6.4%.
While turnover growth remains under pressure, it is against a backdrop of a depressed economic environment
in which our consumers struggle under increasing costs of basic services, high levels of unemployment and
rising household debt. At the same time, competition within the retail industry remains fierce. We believe
that our relentless focus on value, quality and service is winning customers back to Pick n Pay, and we are
once again growing in line with the market.
Gross profit
Gross profit at R5 457 million showed a 0.4 percentage point improvement in margin at 18.1% of turnover. We
are encouraged by the margin enhancement, which is due in part from cost savings and efficiencies achieved in
our supply chain.
We are pleased with the improvements we are seeing at our Longmeadow Distribution Centre in Johannesburg
which, having provided significant challenges in the past, has reduced operating costs and is producing
significantly improved service to stores. While there is still much work to do to harness the full potential
of the facility, we are pleased with the progress made since bringing the management of the facility in-house.
Our Philippi Distribution Centre in the Western Cape continues to perform well, providing us with a sound
benchmark of how central distribution can work to the full advantage of the Group. We will be rolling out
some of Philippis world-class functionality to our other distribution centres around the country.
Trading profit
The trading margin, at 1.1% of turnover, shows a 0.2 percentage point improvement on last year. Total
expenses have increased by 9.4%. Like-for-like expense growth is 6.2%, with 3.2% of total expense growth
being attributable to new stores opened in the past year.
The following have contributed to the increase in operating expenses:
We continue to see our customers switching their form of tender from cash and debit cards to credit
cards, which comes at a significantly increased cost for the Group. We will work closely with South
African banks to make sure that credit card charges are more reflective of their underlying cost;
Occupancy costs increased in line with the increase in new stores; and
We have reached a new 3-year wage agreement with our labour unions. We will work together with our
unions to further improve our productivity, in order to manage labour costs, which are a major portion
of our trading expenses.
We have maintained strong fiscal control of the business and have taken action to further reduce our costs,
particularly in respect of support office overheads, the consequences of which will be evident in the next
financial year.
Interest
The net interest expense of R54.9 million is up R16.4 million on last year (2012: R38.5 million) due to
increased short-term borrowings over the period, necessitated by our investment in new stores and the
increased inventory required.
Earnings per share
Headline earnings per share (HEPS) increased 13.6%, from 35.91 to 40.81 cents per share. The new 52-week
financial reporting calendar reduced the current reporting period by two trading days, which impacted HEPS
by 5.85 cents per share. If the impact of the new calendar is excluded, the increase on the prior period
is 35.8%.
Basic earnings per share (EPS) increased 6.1%, from 37.73 to 40.05 cents per share. The new 52-week
financial reporting calendar reduced the current reporting period by two trading days, which impacted EPS
by 5.85 cents per share. If the impact of the new calendar is excluded, the increase on the prior period
is 25.6%.
Financial position
1 September 2013 31 August 2012
Sunday Friday
Rm Rm
Inventory 3 950.7 3 981.1
Trade and other receivables 2 389.9 2 163.6
Cash and cash equivalents 1 340.3 1 044.8
Current liabilities (9 157.2) (8 672.7)
Net working capital (1 476.3) (1 483.2)
Our level of net working capital is in line with last year. Although the value of inventory appears only
marginally down on last year, once the impact of provisioning new stores is taken into account, inventory in
like-for-like stores has reduced by R190 million or 4.8%. The increase in trade and other receivables is due
to new franchise stores. The Group used short-term borrowings under its DMTN programme effectively during the
period, receiving competitive interest rates in the capital markets.
Shareholder dividends
In line with our review of all aspects of the business, the Board has moderated its annual dividend cover
to 1.5 times headline earnings per share. This has resulted in an interim dividend of 14.80 cents which is
up 0.3% on the previous year.
PROSPECTS
Over the course of the last six months we have delivered an improved performance, built a stronger business
and agreed on a clearer plan for the future. We are determined that Pick n Pay customers will benefit from
our investment in infrastructure through improved availability, choice, quality and price. Our management
team is resolute in improving our customer offering, to ensure we stay the customers favourite grocery store.
Gareth Ackerman Richard Brasher
Chairman Chief Executive Officer
21 October 2013 21 October 2013
Consolidated statement of comprehensive income
Unaudited Unaudited Audited
Period to Period to Period to
1 September 31 August 3 March
2013 2012 2013
Rm Change Rm Rm
182 days % 184 days 368 days
Revenue 30 278.0 6.3 28 487.7 59 658.5
Turnover 30 067.6 6.2 28 306.0 59 271.3
Cost of merchandise sold (24 611.1) 5.6 (23 310.8) (48 761.4)
Gross profit 5 456.5 9.2 4 995.2 10 509.9
Other trading income 191.2 23.7 154.6 344.4
Trading expenses (5 330.2) 9.4 (4 874.1) (10 001.9)
Employee costs (2 677.9) 11.0 (2 413.0) (4 952.0)
Occupancy (869.6) 19.0 (731.0) (1 500.5)
Operations (1 173.1) (1.7) (1 193.0) (2 363.9)
Merchandising and administration (609.6) 13.5 (537.1) (1 185.5)
Trading profit 317.5 15.2 275.7 852.4
(Loss)/profit on sale of property, equipment
and vehicles and intangible assets (5.2) (142.3) 12.3 21.6
Interest received 19.2 (29.2) 27.1 42.8
Interest paid (74.1) 13.0 (65.6) (131.3)
Share of associates income 14.4 48.5 9.7 23.4
Profit before tax 271.8 4.9 259.2 808.9
Tax (80.2) 1.8 (78.8) (258.3)
Profit for the period 191.6 6.2 180.4 550.6
Other comprehensive income, net of tax 1.0 1.6 6.5
Exchange rate differences on translating
foreign operations (3.7) 5.1 5.1
Remeasurement in other comprehensive income 4.7 (3.5) 1.4
Total comprehensive income for the period 192.6 5.8 182.0 557.1
EBITDA 810.5 9.9 737.4 1 793.1
Earnings per share - cents
Basic 40.05 6.1 37.73 115.14
Diluted basic 39.69 6.9 37.13 113.39
Headline earnings per share - cents 40.81 13.6 35.91 111.30
Diluted headline earnings per share - cents 40.45 14.5 35.34 109.61
Consolidated statement of financial position
Unaudited Unaudited Audited
As at As at As at
1 September 31 August 3 March
2013 2012 2013
Rm Rm Rm
ASSETS
Non-current assets
Intangible assets 959.5 907.0 947.9
Property, equipment and vehicles 3 980.7 3 817.5 3 917.7
Operating lease asset 116.3 95.5 105.5
Participation in export partnerships 25.4 38.0 28.1
Deferred tax assets 205.4 171.1 174.4
Investment in associate 148.3 120.2 133.9
Loans 95.1 85.1 98.5
Available-for-sale investment 0.2 0.2 0.2
Retirement scheme assets 12.0 - 1.8
5 542.9 5 234.6 5 408.0
Current assets
Inventory 3 950.7 3 981.1 3 996.5
Trade and other receivables 2 389.9 2 163.6 2 360.9
Cash and cash equivalents 1 340.3 1 044.8 1 255.7
7 680.9 7 189.5 7 613.1
Total assets 13 223.8 12 424.1 13 021.1
EQUITY AND LIABILITIES
Capital and reserves
Share capital 6.0 6.0 6.0
Treasury shares (140.1) (135.1) (139.4)
Retained earnings 2 458.6 2 240.3 2 562.6
Foreign currency translation deficit (16.9) (13.2) (13.2)
Total shareholders interest 2 307.6 2 098.0 2 416.0
Non-current liabilities
Borrowings 772.3 772.7 772.5
Retirement scheme obligations - 1.3 -
Operating lease liability 986.7 879.4 924.6
1 759.0 1 653.4 1 697.1
Current liabilities
Bank overdraft and overnight borrowings - - 1 525.6
Borrowings 829.6 686.6 431.5
Tax 80.2 136.8 82.8
Trade and other payables 8 240.7 7 847.3 6 865.0
Derivative financial instruments 6.7 2.0 3.1
9 157.2 8 672.7 8 908.0
Total equity and liabilities 13 223.8 12 424.1 13 021.1
Number of shares in issue - millions 480.4 480.4 480.4
Weighted average number of shares
in issue - millions 478.4 478.1 478.1
Net asset value - cents per share (property
value based on directors valuation) 543.1 514.2 586.0
Consolidated statement of changes in equity
for the period ended 1 September 2013
Foreign
currency
Share Treasury Retained translation
Capital shares earnings deficit Total
Unaudited Rm Rm Rm Rm Rm
At 1 March 2012 6.0 (142.8) 2 559.2 (18.3) 2 404.1
Total comprehensive income for the period - - 176.9 5.1 182.0
Profit for the period 180.4 180.4
Exchange rate differences on translating
foreign operations 5.1 5.1
Remeasurement in other comprehensive
income (3.5) (3.5)
Transactions with owners - 7.7 (495.8) - (488.1)
Dividends paid (513.4) (513.4)
Share repurchases (30.5) (30.5)
Net effect of settlement of employee
share options 38.2 (26.3) 11.9
Share options expense 43.9 43.9
At 31 August 2012 6.0 (135.1) 2 240.3 (13.2) 2 098.0
Total comprehensive income for the
period - - 375.1 - 375.1
Profit for the period 370.2 370.2
Remeasurement in other comprehensive
income 4.9 4.9
Transactions with owners - (4.3) (52.8) - (57.1)
Dividends paid (70.1) (70.1)
Share repurchases (47.4) (47.4)
Net effect of settlement of employee
share options 43.1 (30.1) 13.0
Share options expense 47.4 47.4
At 3 March 2013 6.0 (139.4) 2 562.6 (13.2) 2 416.0
Total comprehensive income for
the period - - 196.3 (3.7) 192.6
Profit for the period 191.6 191.6
Exchange rate differences on
translating foreign operations (3.7) (3.7)
Remeasurement in other comprehensive
income 4.7 4.7
Transactions with owners - (0.7) (300.3) - (301.0)
Dividends paid (328.2) (328.2)
Share repurchases (10.6) (10.6)
Net effect of settlement of employee
share options 9.9 (6.8) 3.1
Share options expense 34.7 34.7
At 1 September 2013 6.0 (140.1) 2 458.6 (16.9) 2 307.6
Consolidated statement of cash flows
Unaudited Unaudited Audited
Period to Period to Period to
1 September 31 August 3 March
2013 2012 2013
Rm Rm Rm
182 days 184 days 368 days
Cash flows from operating activities
Trading profit 317.5 275.7 852.4
Depreciation and amortisation 478.8 439.7 895.5
Share options expense 34.7 43.9 91.3
Net operating lease liability 51.4 39.6 74.8
Cash generated before movements in
working capital 882.4 798.9 1 914.0
Movements in working capital 1 395.0 138.6 (1 012.1)
Increase/(decrease) in trade and
other payables 1 375.4 824.7 (152.4)
Decrease/(increase) in inventory 45.8 (639.9) (626.0)
Increase in trade and other
receivables (26.2) (46.2) (233.7)
Cash generated by trading activities 2 277.4 937.5 901.9
Interest received 19.2 27.1 42.8
Interest paid (74.1) (65.6) (131.3)
Cash generated by operations 2 222.5 899.0 813.4
Dividends paid (328.2) (513.4) (583.5)
Tax paid (113.1) (84.8) (311.6)
Cash generated by/(utilised in)
operating activities 1 781.2 300.8 (81.7)
Cash flows from investing activities
Investment in intangible assets, property,
equipment and vehicles (557.7) (579.0) (1 212.5)
Intangible asset additions (103.8) (123.0) (242.4)
Property additions (30.3) (80.0) (166.5)
Equipment and vehicle additions and
leasehold improvements (423.6) (376.0) (803.6)
Purchase of operations - (94.4) (118.3)
Proceeds on disposal of intangible
assets, property, equipment and vehicles 15.2 192.2 231.5
Loans repaid/(advanced) 3.5 (4.3) (17.7)
Cash utilised in investing activities (539.0) (485.5) (1 117.0)
Cash flows from financing activities
Borrowings raised/(repaid) 397.9 (5.3) (260.5)
Share repurchases (10.6) (30.5) (77.9)
Proceeds from employees on settlement
of share options 0.6 1.7 2.9
Cash generated by/(utilised in) financing
activities 387.9 (34.1) (335.5)
Net increase/(decrease) in cash and cash
equivalents 1 630.1 (218.8) (1 534.2)
Cash and cash equivalents at beginning
of period (269.9) 1 271.7 1 271.7
Effect of exchange rate fluctuations on
cash and cash equivalents (19.9) (8.1) (7.4)
Net cash and cash equivalents at end of period 1 340.3 1 044.8 (269.9)
Consisting of:
Cash and cash equivalents 1 340.3 1 044.8 1 255.7
Bank overdrafts and overnight borrowings - - (1 525.6)
Notes to the financial information for the period ended 1 September 2013
1. BASIS OF PREPARATION AND ACCOUNTING POLICIES
The interim condensed consolidated financial statements for the period ended 1 September 2013
have been prepared in accordance with IAS 34 and International Financial Reporting Standards
(IFRS), the requirements of the South African Companies Act No 71 of 2008, as amended, and in
compliance with the Listings Requirements of the JSE Limited. The accounting policies and methods
of computation applied are consistent with those applied in preparation of the annual financial
statements for the period ended 3 March 2013. The interim condensed consolidated financial
statements have been prepared by the Pick n Pay Finance Division under the supervision of the
Chief Finance Officer, Mr Aboubakar (Bakar) Jakoet CA(SA). The information contained in the
interim report has neither been audited nor reviewed by the Group's external auditors.
2. CHANGE IN FINANCIAL PERIOD CUT-OFF DATE
During the financial period ended 3 March 2013 the Group adopted a 52-week financial reporting
calendar for all future financial periods. This change aligned financial reporting with Group
operational structures and will improve comparative reporting to both internal and external
stakeholders.
As a result, the 2014 interim financial period ended on 1 September 2013 consisted of 182 trading
days compared to the comparative period ended 31 August 2012 of 184 trading days. The additional
trading days included in the prior period result had the following estimated impact on the
consolidated financial statements. There was no impact on working capital.
Statement of comprehensive income
Unaudited
Rm
Turnover 333.8
Net profit after tax 28.0
3. RELATED PARTIES
During the period, certain companies within the Group entered into transactions with each other.
These intra-group transactions are eliminated on consolidation. Related parties are unchanged
from those reported at 3 March 2013. For further information please refer to note 27 of the 2013
Group annual financial statements and note 9 of the 2013 Company annual financial statements.
4. SHARE CAPITAL Unaudited Unaudited Audited
1 September 31 August 3 March
2013 2012 2013
Rm Rm Rm
Authorised
800 000 000 ordinary shares of 1.25 cents each 10.0 10.0 10.0
Issued
480 397 321 ordinary shares of 1.25 cents each 6.0 6.0 6.0
000s 000s 000s
The number of shares in issue at end of period
is made up as follows:
Treasury shares held in the share trust 2 020.0 2 121.6 2 046.6
Shares held outside the Group 478 377.3 478 275.7 478 350.7
Total shares in issue at end of period 480 397.3 480 397.3 480 397.3
Under a general authority, 24 million of the unissued shares remain under the control of the directors
until the next annual general meeting (5% of the issued share capital of the Company).
In addition to the general authority above, 63.9 million unissued shares (13.3% of issued shares) remain
under the control of the directors to implement the terms and provisions of the Pick n Pay 1997 Share
Option Scheme.
The holders of ordinary shares are entitled to receive dividends as declared and are entitled to one
vote per share at meetings of the Company.
5. OPERATING SEGMENTS
Total
Unaudited South Africa Africa operations
Rm Rm Rm
2013
Total revenue 29 046.9 1 596.2 30 643.1
External revenue 29 046.9 1 231.1 30 278.0
Direct deliveries* - 275.0 275.0
Inter-segment revenue - 90.1 90.1
External turnover 28 561.5 1 506.1 30 067.6
Profit before tax 206.7 65.1 271.8
Other information
Statement of comprehensive income
Interest received 19.1 0.1 19.2
Interest paid 73.8 0.3 74.1
Depreciation and amortisation 469.2 9.6 478.8
Share of associates income - 14.4 14.4
Statement of financial position
Total assets 12 447.6 776.2 13 223.8
Total liabilities 10 382.8 533.4 10 916.2
2012
Total revenue 27 643.4 1 219.6 28 863.0
External revenue 27 643.4 844.3 28 487.7
Direct deliveries* - 329.4 329.4
Inter-segment revenue - 45.9 45.9
External turnover 27 132.3 1 173.7 28 306.0
Profit/(loss) before tax 212.1 47.1 259.2
Other information
Statement of comprehensive income
Interest received 27.0 - 27.1
Interest paid 63.9 - 65.6
Depreciation and amortisation 433.3 6.4 439.7
Share of associates income - 9.7 9.7
Statement of financial position
Total assets 11 932.7 491.4 12 424.1
Total liabilities 9 942.1 384.0 10 326.1
* Direct deliveries are issues to franchisees directly by Group suppliers facilitated through
the Groups supply chain
6. HEADLINE EARNINGS RECONCILIATION
Unaudited Unaudited Audited
1 September 31 August 3 March
2013 2012 2013
Rm Rm Rm
182 days 184 days 368 days
Basic earnings (profit for the period) 191.6 180.4 550.6
Adjustments: 3.6 (8.7) (18.4)
Loss/(profit) on sale of property, equipment
and vehicles and intangible assets 5.2 (12.3) (21.6)
Tax effect of (loss)/profit on sale of
property, equipment and vehicles and
intangible assets (1.6) 3.6 3.2
Headline earnings 195.2 171.7 532.2
Pick n Pay Holdings Limited (Pikwik)
INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA - Reg. no. 1981/009610/06
JSE share code: PWK
ISIN Code: ZAE000005724
Pikwiks only asset is its 53.80% (2012: 53.81%) effective holding in Pick n Pay Stores Limited
(excluding treasury shares). The Pikwik Group earnings are directly related to those of this
investment.
Basic earnings for the period amount to R102.5 million (2012: R96.5 million).
Basic earnings per share is 19.86 cents (2012: 18.68 cents).
Diluted basic earnings per share is 19.50 cents (2012: 18.19 cents).
Headline earnings for the period amount to R104.5 million (2012: R91.8 million).
Headline earnings per share is 20.24 cents (2012: 17.78 cents).
Diluted headline earnings per share is 19.88 cents (2012: 17.31 cents).
The total number of shares in issue is 527.2 million (2012: 527.2 million) and the weighted average number
of shares in issue during the period is 516.3 million (2012: 516.4 million).
Pikwiks interim dividend per share is 7.20 cents (2012: 7.17 cents per share), an increase of 0.4%.
Raymond Ackerman
Chairman Pick n Pay Holdings Limited
21 October 2013
Dividend declarations
In line with our review of all aspects of the business, the Board has moderated its annual dividend cover
to 1.5 times headline earnings per share.
Pick n Pay Stores Limited - Tax reference number: 9275/141/71/2
Number of shares in issue: 480 397 321
Notice is hereby given that the directors have declared a final gross dividend (number 91) of 14.80 cents per
share out of income reserves.
The dividend declared is subject to dividend withholding tax at 15%.
There is no secondary tax on companies to be taken into account when determining the dividend tax to
withhold.
The tax payable is 2.22 cents per share, leaving shareholders who are not exempt from dividends
tax with a net dividend of 12.58 cents per share.
Pick n Pay Holdings Limited - Tax reference number: 9050/141/71/3
Number of shares in issue: 527 249 082
Notice is hereby given that the directors have declared a final gross dividend (number 64) of 7.20 cents per
share out of income reserves.
The dividend declared is subject to dividend withholding tax at 15%.
There is no secondary tax on companies to be taken into account when determining the dividend tax to
withhold.
The tax payable is 1.08 cents per share, leaving shareholders who are not exempt from dividends
tax with a net dividend of 6.12 cents per share.
Dividend dates
The last day of trade in order to participate in the dividend (CUM dividend) will be Friday, 6 December
2013.
The shares will trade EX dividend from the commencement of business on Monday, 9 December 2013 and the
record date will be Friday, 13 December 2013. The dividends will be paid on Tuesday, 17 December 2013.
Share certificates may not be dematerialised or rematerialised between Monday, 9 December 2013 and Friday,
13 December 2013, both dates inclusive.
On behalf of the boards of directors
Debra Muller
Company Secretary
21 October 2013
CORPORATE INFORMATION
PICK N PAY STORES LIMITED
BOARD OF DIRECTORS
Executive
RWP Brasher (CEO) (British)
RSJ van Rensburg (deputy CEO)
A Jakoet (CFO)
JG Ackerman
SD Ackerman-Berman
Non-executive
GM Ackerman (Chairman)
D Robins (German)
Independent non-executive
HS Herman
L Phalatse
BJ van der Ross
J van Rooyen
PICK N PAY HOLDINGS LIMITED
BOARD OF DIRECTORS
Non-executive
RD Ackerman (Chairman)
GM Ackerman
W Ackerman
Independent non-executive
RP de Wet
HS Herman
J van Rooyen
Alternate
JG Ackerman
SD Ackerman-Berman
D Robins (German)
REGISTERED OFFICE
Pick n Pay Office Park
101 Rosmead Avenue
Kenilworth
Cape Town 7708
Tel: +27(0)21 658 1000
Fax: +27(0)21 797 0314
POSTAL ADDRESS
PO Box 23087
Claremont
7735
WEBSITE
Pick n Pay: www.picknpay.co.za
Investor Relations: www.picknpayinvestor.co.za
SPONSOR
Investec Bank Limited
100 Grayston Drive
Sandton 2196
COMPANY SECRETARY
Debra Muller
email address: demuller@pnp.co.za
TRANSFER SECRETARIES
Computershare Investor Services Proprietary Limited
70 Marshall Street
Johannesburg 2001
PO Box 61051
Marshalltown 2107
Tel: +27(0)11 370 5000
Fax: +27(0)11 688 5248
AUDITORS
KPMG Inc.
ATTORNEYS
Edward Nathan Sonnenberg
Date: 22/10/2013 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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