Wrap Text
Summarised Audited Group Annual Financial Statements for the 52 weeks ended 26 February 2017 & Dividend Declaration
PICK N PAY STORES LIMITED
Registration number: 1968/008034/06
JSE share code: PIK
ISIN: ZAE000005443
SUMMARISED AUDITED GROUP
ANNUAL FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 26 FEBRUARY 2017
Review of operations
KEY FINANCIAL INDICATORS
52 weeks to 52 weeks to
26 February 28 February %
2017 2016 change
Turnover R77.5 billion R72.4 billion 7.0
Gross profit margin 18.0% 17.9%
Trading expenses margin 17.1% 17.2%
Trading profit R1 773.8 million R1 516.3 million 17.0
Trading profit margin 2.3% 2.1%
Profit before tax (before capital items) R1 761.5 million R1 506.1 million 17.0
Profit before tax margin (before capital items) 2.3% 2.1%
Basic earnings per share (EPS) 256.67 cents 219.11 cents 17.1
Headline earnings per share (HEPS)* 264.35 cents 224.04 cents 18.0
Diluted headline earnings per share (DHEPS)* 257.69 cents 219.90 cents 17.2
Total annual dividend per share 176.30 cents 149.40 cents 18.0
* Headline earnings per share and diluted headline earnings per share exclude capital items, which accounts for the difference in
the year-on-year increase between EPS and HEPS.
Result summary
The Group delivered growth in headline earnings
per share of 18.0% for the 2017 financial year,
maintaining the positive momentum achieved
over each of the past four years. Turnover
growth of 7.0% reflects the difficult consumer
environment in South Africa.
The Group progressed in a number of key areas
over the year. A stronger gross profit margin
and well-controlled costs demonstrate the
value of the Group's increasingly centralised
supply chain and greater operating efficiency
in a low-growth environment. Labour costs in
particular were contained well below inflation.
Profit before tax (before capital items) was up
17.0% year-on-year to R1 761.5 million, more
than double the profit of four years ago. The
profit before tax (before capital items) margin
has improved from 1.2% in 2013 to 2.3% today.
The Group's core South African operations
delivered growth in profit before tax (before
capital items) of 20.0%, with tough trading
conditions in Zambia constraining growth in
the Rest of Africa division.
The Group is now well advanced on its journey
to restore the business to a sustainable profit
margin, with a cost-effective and efficient
engine and effective platforms for long-term
growth.
Review of earnings
performance
The Group modernised its control ownership
structure in the first half of the year, with
the unbundling of the Pick n Pay Holdings
Limited RF Group. Although there were
material non-recurring movements on certain
individual categories of other trading income
and trading expenses, the transaction had no
impact on trading profit or headline earnings.
Please refer to the table at the conclusion of
this review of operations for further detail.
The financial review provided below, excludes
the material non-recurring items included
in trading profit related to the unbundling
transaction.
Turnover
Group turnover increased 7.0% to R77.5 billion,
with like-for-like turnover growth of 3.4%. On
a constant currency basis, Group turnover was
up 7.1%. Throughout the year, customers faced
growing pressure on their household budgets,
resulting from high food inflation, rising
utility and transport costs, and stagnating
real incomes. By buying better and running a
more efficient business, the Group was able
to provide meaningful support for customers,
restricting its selling price inflation to 6.1% for
the year, well below published food inflation
of 11.0%.
More value for customers
Customers across all socio-economic groups
are consistently seeking lower prices and
better value. The Group is much better placed
to respond to customers' changing needs than
it was four years ago. Brand Match has given
Pick n Pay, and its customers, confidence
in the competitiveness of its pricing across
2 000 branded grocery lines. In March 2017,
the Group signalled its intention to accelerate
progress in its turnaround, in particular
through a commitment to lower prices across
fresh, perishable and grocery lines. The Group
announced in March 2017 an investment of
R500 million in lower prices, beginning with
reductions in price across 1 300 grocery lines,
with a particular focus on fresh meat, fruit and
vegetables.
Rewarding loyalty
Pick n Pay's Smart Shopper programme, with
7 million active members in 2017, and 20 swipes
at till every second, was once again recognised
as South Africa's favourite loyalty programme.
Responding to customer demand for more
immediate support, the Group announced
a more rewarding and more personal Smart
Shopper programme in March 2017. It includes
weekly personalised discounts for each Smart
Shopper, tailored specifically to each customer
on the basis of their actual shopping habits.
The Group will continue to modernise and
enhance the programme through ongoing
innovation in both technology and reward,
to ensure it remains relevant and fresh for
customers.
Stronger offer
The Group improved its fresh offer by
broadening its range, delivering better
freshness and longer shelf-life, and by running
promotions on staple commodities, including
through bulk buys and combination offers.
Pick n Pay expanded its private label offer
across convenience, perishable and grocery
lines. Customers responded positively, and
private label contributed 18.0% of total
turnover. The Group delivered its best
availability in over four years, with on-shelf
stock availability consistently maintained at
96% over the year.
Boxer delivered strong turnover growth in a
depressed and highly contested area of the
market. The Boxer team was able to invest
meaningfully in the price of basic commodities,
while strengthening its fresh meat, fruit and
vegetable offer over the year.
The Pick n Pay clothing business again delivered
strong double-digit growth, as customers
sought long-lasting quality at great value. The
Group's liquor business grew 15%, with solid
market share growth across a number of key
lines. The Group added 24 clothing stores and
46 liquor stores in 2017.
Online turnover growth remains strong,
with more customers turning to the trusted
convenience offered by Pick n Pay online.
Online turnover in the Western Cape grew 30%
year-on-year, driven by the success of the
dedicated online picking warehouse situated at
the Brackenfell Hypermarket near Cape Town.
Following the success of this warehouse, the
Group opened a second online warehouse,
outside Johannesburg, in December 2016.
Online shoppers in Gauteng will benefit from
a broader range, improved availability and
lower prices.
Better stores
The Group refurbished 62 stores over the
course of the year and closed 12 under-
performing stores, including five franchise and
four Boxer stores. The resulting disruption to
trade had some negative impact on turnover
growth. However, the improvement in the
estate is a valuable investment in the future.
The Group now has 106 next generation
supermarkets across its Pick n Pay and Boxer
brands. These stores are now the model for all
new and refurbished stores, and are providing
customers with a better shopping experience
and a stronger customer offer, particularly
in fresh and convenience categories. Next
generation stores also provide a more efficient
and cost-effective operating model for the
business.
Wider reach
The Group opened 68 new Pick n Pay company-
owned stores and 25 new Boxer stores
across all formats over the year, including
14 Pick n Pay Local convenience stores. This
growth delivered on the Group's intention to
open new stores in communities which it had
not previously served, and to respond to the
growing demand for convenience. New stores
contributed 3.6% to turnover growth.
The Group opened 70 Pick n Pay franchise
stores over the period, including 32 Pick n
Pay Express stores on BP forecourts. There
are now 111 Pick n Pay Express stores, more
than double the number of two years ago. Our
franchise partners continue to be a key growth
opportunity for Pick n Pay and the Group
strengthened its support of franchisees during
the year by delivering more competitive prices,
improving availability and by expanding its
administrative and operational support.
Gross profit
Gross profit at R13.9 billion increased 7.5%
on last year. The gross profit margin improved
0.1 percentage point to 18.0% of turnover,
with progress across its procurement and
supply chain channel.
As a greater proportion of goods were brought
into its centralised supply chain, the Group
improved the efficiency and cost-effectiveness
of its distribution centres and lowered the cost
per case delivered. The Group also improved
its management of shrink and waste through
a dedicated management programme and
increased security measures.
Boxer in particular delivered a stronger gross
profit margin performance, driven by greater
participation of its butchery, fresh produce
and value-added convenience categories.
Stronger central supply chain
The Group increased its centralised supply
to 60% of total volume, with 73% centralised
supply in the Western Cape and 62% in the
Inland region of South Africa (Gauteng and
surrounds). The Group has achieved substantial
progress in the centralisation of its grocery
supply over the last few years, with groceries
87% centralised in the Western Cape and 68%
in Inland. The Group brought an additional 140
suppliers into its centralised supply chain. This
included 80 new wine suppliers and eight new
suppliers from its own supplier development
and business incubator initiatives. Issues out
of Group distribution centres were up 20%
year-on-year, with a 21% increase out of
Longmeadow. More than 2.0 million cases were
distributed every week out of this facility.
Progress on fresh
The Group progressed on perishables during
the year, establishing a new fresh distribution
facility at its Philippi distribution centre in
Cape Town, and completing the centralisation
of its main dairy suppliers in KwaZulu-Natal.
The Philippi and Longmeadow distribution
centres have delivered a reduction in waste
across all fresh categories, alongside ongoing
improvements at store level.
More efficiency
The Group completed the implementation of its
supply chain management system (SAP EWM)
across all its distribution centres. This has
improved operational efficiency, transport
management and reporting capability across
the supply chain channel. Progress on the
central supply chain in the Western Cape
enabled Pick n Pay to bring the management of
its Philippi distribution centre in-house, which
will realise further cost savings in the future.
The Group has recently secured additional
supply chain capacity in KwaZulu-Natal,
to further its progress on centralisation in
the region.
Other trading income
Other trading income increased 12.6% to
R1 093.3 million.
Franchise fee income is up 10.5% to
R349.8 million, reflecting the 70 new franchise
stores opened over the last 12 months and an
improved franchise turnover performance.
Operating lease income increased 4.9% to
R345.3 million, with a number of non-strategic
head leases not renewed this year. Excluding
this impact, operating lease income increased
7.4%, in line with annual escalations.
Commissions, dividends received and other income grew
22.3% to R398.2 million. Our value-added service
business is maturing into an important part of
our customer offer, with a solid performance
across all categories of value-added services,
including strong double digit growth in
commission income from prepaid electricity,
third party bill payments, ticketing and
financial services. The Group launched a new
money transfer service in partnership with the
Commonwealth Bank of Australia this year. The
service has been used by more than 100 000
customers in just five months. The service is
integrated with our Smart Shopper loyalty
programme, is entirely digitised, and enables
a customer to execute a money transfer easily
and quickly from any Pick n Pay till point.
Trading expenses
Trading expenses increased 6.7% to
R13.3 billion, notwithstanding the addition
of a net 86 company-owned stores over the
year. This is a commendable performance in
an inflationary environment, with like-for-like
trading expenses up only 3.0% on the previous
year.
Employee costs - increased 5.8% on
last year to R6 414.0 million, and improved
0.1 percentage point to 8.3% of turnover. The
like-for-like increase of 3.3% was supported
by a more efficient store operating model and
ongoing improvements in labour scheduling.
The Group concluded a new three-year
wage agreement with its main labour union.
It introduced a new category of staff with basic
pay set at a competitive level. The Group also
introduced a guaranteed minimum of 85 hours
work per month for all employees. As well as
delivering a fair and competitive package for
employees, the new agreement will enable the
Group to achieve further improvements in cost
and labour productivity over the coming years.
The Group purchased shares to the
value of R345.4 million under its share
incentive schemes during the year, and
delivered substantial wealth creation for
9 250 employees at all levels, who realised
their share awards during the period. The
increased take-up of employee share awards
was driven by the higher share price over the
year, as well as increased communication with
employees during the unbundling of Pick n Pay
Holdings Limited RF.
The success of the Group's employee share
incentive schemes is testament to the values
of Pick n Pay and the positive role the Group
has played as a progressive and responsible
employer. The Group created 4 500 new jobs
during the year, principally through its store
opening programme.
The Group remains committed to creating
quality jobs across South Africa and beyond.
The modernisation of the Group is key to
achieving this goal, and to ensuring that the
jobs created are sustainable. Improvements
in productivity and cost-effectiveness enable
the Group to be more competitive, offer
better value, attract more customers and
grow its footprint sustainably. It was against
this background that Pick n Pay launched
a voluntary severance programme (VSP) in
March 2017, that is expected to be finalised
by the end of April 2017. Participation in the
scheme is entirely voluntary, and acceptance
of applications is at the Group's discretion.
The programme will enable Pick n Pay to
remove positions that are no longer required
as a result of improved ways of working.
By becoming more efficient and offering better
value, the Group will sell more products and
open more stores, creating more sustainable
jobs in a strong and forward-looking business.
Occupancy costs - are up 14.6% on last year
to R2 678.9 million, and up 0.2 percentage
points to 3.4% of turnover, driven by new
stores. The like-for-like increase in occupancy
costs of 7.2% is largely in line with annual
escalations, however, this category of expense
continues to trend upwards, driven by high
regulated increases in rates and increased
security costs. Increased security measures
have mitigated the cost of shrink and theft in
the business.
Operations costs - are up 4.0% on last year to
R2 961.7 million, with like-for-like operations
costs up 1.5%. The biggest benefits this
year came from well managed electricity and
repairs and maintenance costs and tightly
controlled depreciation and amortisation.
Energy-saving initiatives and investment in
better refrigeration and lighting has reduced
energy usage by 14% over the last five years,
contributing to well managed energy costs.
Merchandising and administration costs -
grew 1.9% on last year to R1 201.6 million.
The Group continues to tightly manage the
cost of its professional, legal and other
support services. This category of expense
also includes fair value adjustments related
to the Group's forward exchange contracts
and foreign exchange differences. The
strengthening of the South African rand over
the year, saw the Group expense R29.9 million
in foreign exchange and related fair value
losses, compared to profits of R8.2 million in
the prior year.
Trading profit
Trading profit increased by 17.0% to
R1 773.8 million. The trading profit margin
improved by 0.2 percentage points, from 2.1%
to 2.3% of turnover.
Net interest
Net interest paid of R92.5 million increased
65.0% on last year, as a result of increased
gearing over the year. Net cash balances reflect
the Group's ongoing investment in capital
and inventory related to its store opening,
refurbishment and centralisation programmes,
and increased share buy-backs related to its
employee share incentive schemes. Higher
interest rates payable on overnight borrowings
also had an impact on the total net interest bill
over the period.
Losses on capital items
The Group incurred R46.3 million of capital
losses. The losses include a R13.9 million
impairment loss incurred by a subsidiary
company in respect of its investment in
Pick n Pay Holdings Limited RF, as a result
of the unbundling transaction. The remaining
R32.4 million relates to the impairment and
disposal of assets mainly due to the Group's
refurbishment programme, compared with
R32.6 million in the prior year. Capital items
are added back in the calculation of headline
earnings.
Profit before tax
Profit before tax is up 16.4% to R1 715.2 million,
representing a margin improvement from 2.0%
to 2.2%. Profit before tax excluding capital
items, is up 17.0%, with the underlying margin
improving from 2.1% to 2.3% of turnover.
Rest of Africa segment
Segmental revenue for the Rest of Africa
division, in constant currency terms, increased
8.7%, with like-for-like revenue retraction
of 0.4%. Reported segmental revenues were
up 7.7% (like-for-like revenue retraction of
2.3%), with local currency weakness in Zambia
having a negative impact on translation. Profit
before tax for this division was down 0.3% to
R225.5 million.
In Zambia, the impact of drought and related
water and power outages, coupled with
the low copper price, continued to dampen
economic growth across the region. The team
responded to the low growth environment with
strong discipline on cost. Notwithstanding
current economic headwinds, the Group
remains positive of its long-term position and
opportunity in the region.
The Group's franchise businesses in Namibia,
Botswana, Swaziland and Lesotho continued
to trade well. The Group opened its first new
supermarket and liquor stores in Botswana in
five years, and is looking forward to working
with a new franchisee in Swaziland, who has
bought six of the 10 Pick n Pay franchise
stores in the region, with plans for expansion
and a revitalised offer.
The Group opened 12 new supermarkets
outside South Africa during the year, three in
Namibia, six in Zambia, one in Zimbabwe and
two in Botswana. The Group plans to open its
first stores in Ghana and Nigeria over the next
two years.
Share of associate's income - the Group's
associate in Zimbabwe, TM Supermarkets (TM),
delivered a strong performance in a tough
macroeconomic environment, characterised
by liquidity constraints, rising unemployment
and falling consumer confidence. The Group's
share of TM's earnings grew 74.7% on last year
to R80.2 million, representing growth in local
currency terms of 71.8%. The team benefited
from increased operational collaboration
with Pick n Pay, and strong trade from the
rebranded Pick n Pay stores in the region.
TM was once again recognised as Retailer of
the Year in Zimbabwe by the Confederation
of Zimbabwe Retailers. TM Supermarkets now
has 56 stores in Zimbabwe, 16 of which trade
under the Pick n Pay banner.
Tax
The effective tax rate of 27.5% is marginally
down on the 27.7% of last year, as a result
of the Group's increased profitability, with
no corresponding change in the level of non-
deductible expenditure.
Earnings per share
Basic earnings per share (EPS) - increased
17.1% from 219.11 to 256.67 cents per share.
Headline earnings per share (HEPS) -
increased 18.0% from 224.04 to 264.35 cents
per share.
The difference between the growth in basic
earnings per share and headline earnings
per share relates to the effect of losses of a
capital nature in the calculation of headline
earnings. Capital losses of R37.2 million, net of
tax, were taken into account in the calculation
of headline earnings in the current period,
against R23.3 million in the prior period.
Diluted headline earnings per share (DHEPS)
- increased 17.2% from 219.90 to 257.69 cents
per share. DHEPS reflects the dilution effect
of share options held by participants in the
Group's employee share schemes.
The dilution increased marginally over the
period due to the unbundling of Pick n Pay
Holdings Limited RF, with employees that had
previously held share options in Pick n Pay
Holdings Limited RF (dilutive at PWK level)
receiving replacement share options in
Pick n Pay Stores Limited.
Review of financial position
The increase in the Group's assets reflects its
ongoing investment in its turnaround strategy,
including investment in its store opening and
refurbishment programme, its centralised
supply chain and systems infrastructure. The
fair value of financial instruments held by the
Group decreased year-on-year, in line with the
increase in treasury shares, with the Group's
investment in the equity of Pick n Pay Holdings
Limited RF being replaced with unbundled
treasury shares in Pick n Pay Stores Limited,
to the same value.
Working capital
The financial calendar cut-off, in particular the
timing of creditor payments over the financial
year-end, had a substantive impact on the
movement in the Group's reported working
capital balances in 2017, against that of 2016.
Further information is provided below.
Inventory
Inventory increased 16.4% on last year to
R5 994.6 million, impacted by the 151 net new
stores (excluding TM Supermarkets) opened
over the last 12 months, and increased levels
of centralisation in the short term. Removing
the impact of new stores and inflation,
inventory is up 5.2% year-on-year. The
Group also increased its value of investment
buys at year-end, to support customers
ahead of supplier price increases. The Group
is confident of the opportunity to reduce
stock levels in the business through targeted
assortment management, keener forecast and
replenishment and a stronger promotional
calendar. This is a key focus area for the 2018
financial year.
Trade and other receivables
Trade and other receivables increased 3.6%
on last year to R3 445.1 million, with 65 net
new franchise stores added over the year.
Franchise debt remains well controlled, with
the impairment allowance at 3.5% of the value
of the debtors book in line with last year.
Trade and other payables
Trade and other payables is flat on last year at
R10 490.2 million, largely due to the positive
impact of the financial calendar cut-off in the
prior year of R1.2 billion. On a comparable
basis, trade and other payables increased
12.1% year-on-year.
Cash and cash equivalents
2017 2016
Rm Rm
Cash balances 961.9 982.9
Bank overdraft
and overnight
borrowings (1 800.0) (100.0)
Cash and cash
equivalents (838.1) 882.9
Total borrowings (133.2) (529.6)
Net funding
position (971.3) 353.3
The timing of the Group's financial calendar
cut-off can have a substantive impact on
reported working capital and cash balances,
depending on the timing of creditor payments
over financial year-end. The decrease in funding
from net working capital of R986.3 million,
and the related decrease in cash balances at
year-end, reflects the reversal of an estimated
R1.2 billion positive calendar impact in 2016.
The Group remains cash-generative, with
cash generated before movements in working
capital up 14% on last year. Net working
capital funding increased by R230 million on a
comparable basis.
The Group paid R753.5 million in dividends
to shareholders (up 27.8% on last year),
invested R1.9 billion in improving the quality
of its estate, invested R345.4 million in its
employee share incentive schemes and repaid
R445.1 million of long-term structured debt.
These important outlays, together with
increased inventory balances in line with the
Group's plan to improve on-shelf availability
across the business, resulted in increased
gearing over the 2017 year and an increased
interest bill.
Capital investment
Capital expenditure related to the Group's
capital investment programme at R1.9 billion,
was in line with last year. The Group continues
to commit the majority of its capital investment
on expansion and refurbishment in order to
improve the customers' shopping experience.
The Group plans to invest a further R1.8 billion
in its store opening and store improvement
programme next year. The Group is confident of
its ability to meet its investment requirements
through internal cash-generation and cost-
effective short-term borrowings. The Group's
liquidity position remains strong, with 25%
of available borrowing facilities utilised at
year-end.
The Group delivered return on capital employed
of 31.3% (2016: 29.3%). The net asset value per
share increased from 910.0 cents per share to
979.5 cents per share.
Shareholder distribution
The Board declared a final dividend of 146.40
cents per share, bringing the total annual
dividend for the year to 176.30 cents per
share, 18.0% up on last year and maintaining a
dividend cover of 1.5 times headline earnings
per share.
The unbundling of Pick n Pay
Holdings Limited RF Group
The unbundling of the Pick n Pay Holdings
Limited RF Group had no impact on trading
profit or headline earnings. The material non-
recurring items related to the unbundling
transaction are detailed below.
Summary of non-recurring items included in trading profit:
Excluding
Non- non-
recurring recurring
As reported items items As reported
52 weeks to 52 weeks to 52 weeks to 52 weeks to
26 February 26 February 26 February 28 February
2017 2017 2017 % of % 2016 % of
Rm Rm Rm turnover change Rm turnover
Revenue 79 117.8 412.3 78 705.5 7.1 73 477.3
Turnover 77 486.1 77 486.1 7.0 72 445.1
Cost of merchandise
sold (63 549.4) (63 549.4) (59 474.8)
Gross profit 13 936.7 13 936.7 18.0 7.5 12 970.3 17.9
Other trading
income 1 505.6 412.3 1 093.3 1.4 12.6 971.3 1.3
Dividend in specie 412.3 412.3 - -
Franchise fee
income 349.8 349.8 0.5 10.5 316.7 0.4
Operating lease
income 345.3 345.3 0.4 4.9 329.1 0.5
Commissions, dividends received and
other income 398.2 398.2 0.5 22.3 325.5 0.4
Trading expenses (13 668.5) (412.3) (13 256.2) 17.1 6.7 (12 425.3) 17.2
Employee costs (6 619.8) (205.8) (6 414.0) 8.3 5.8 (6 060.6) 8.4
Occupancy (2 678.9) (2 678.9) 3.4 14.6 (2 337.6) 3.2
Operations (2 961.7) (2 961.7) 3.8 4.0 (2 848.1) 3.9
Merchandising and
administration (1 408.1) (206.5) (1 201.6) 1.5 1.9 (1 179.0) 1.6
Trading profit 1 773.8 - 1 773.8 2.3 17.0 1 516.3 2.1
Other trading income - includes a dividend
in specie of R412.3 million, representing the
value of the Pick n Pay Stores Limited shares
(now held as treasury shares) received by the
Group on the unbundling of Pick n Pay Holdings
Limited RF (PWK).
Employee costs - the Group operates an
employee share incentive scheme where
eligible employees were granted share options
in PWK. These share options were cancelled
and replaced with Pick n Pay Stores Limited
share options, in terms of the shareholder
approval received at the extraordinary general
meeting held on 25 July 2016.
Employee costs include the share-based
payment expense related to the increase in the
market value of PWK share options prior to
the unbundling, as well as the cancellation and
replacement cost of these options.
Merchandising and administration costs -
include a net fair value loss of R206.5 million in
respect of the Group's investment in Pick n Pay
Holdings Limited RF. This fair value movement
was as a result of the increased market value
of PWK shares prior to the unbundling, and the
subsequent write-off of the investment on the
receipt of the dividend in specie distribution.
The dividend in specie, increased share-
based payment costs and related fair value
adjustments detailed above, had no impact on
trading profit or headline earnings.
Losses on capital items - include an
impairment loss incurred by a subsidiary
company in respect of its investment in
Pick n Pay Holdings Limited RF of R13.9 million.
The loss is added back for the purposes of
calculating headline earnings per share.
Accelerating the turnaround
Fifty years ago this year, Raymond Ackerman
bought three small stores in Cape Town, and
began to pursue his goal: to fight high prices
and bring South Africans the best prices and
best service of any retailer in South Africa. The
Group's turnaround plan has essentially been
about returning Pick n Pay to its roots as a
discounter and consumer champion.
Over each of the past four years, the Group
has improved its customer offer, modernised
its stores, centralised its supply chain, and
firmly controlled its costs. The result has been
eight consecutive periods of double-digit
profit growth, and an improvement in trading
profit margin to 2.3%.
However, conditions for consumers have
become progressively more challenging.
Customers at all levels are demanding
consistently lower prices and better value.
This is a worldwide phenomenon, and is firmly
evident in South Africa. In a low-growth
economy, competition for hard-pressed and
cost-conscious customers is going to be
the new normal. Pick n Pay is determined to
succeed in this new normal by accelerating
the pace of its plan, in particular by reducing
its costs further in order to create additional
headroom to deliver lower prices and better
value for customers.
The Group has made a strong start on this
accelerated plan at the beginning of the
2018 financial year with the introduction of
permanently lower prices on 1 300 lines and
a modernised Smart Shopper loyalty scheme.
It will build on this throughout the year as
it accelerates progress towards a better
Pick n Pay - better for customers, better for
colleagues and better for shareholders.
Gareth Ackerman Richard Brasher
Chairman Chief Executive Officer
18 April 2017
Dividend Declaration
Pick n Pay Stores Limited - Tax reference number: 9275/141/71/2
Number of ordinary shares in issue: 488 450 321
Notice is hereby given that the directors have declared a final gross dividend (number 98) of
146.40 cents per share out of income reserves.
The dividend declared is subject to dividend withholding tax at 20%.
The tax payable is 29.28000 cents per share, resulting in shareholders who are not exempt from
dividends tax with a net dividend of 117.12000 cents per share.
Dividend dates
The last day of trade in order to participate in the dividend (CUM dividend) will be Tuesday,
6 June 2017.
The shares will trade EX dividend from the commencement of business on Wednesday,
7 June 2017 and the record date will be Friday, 9 June 2017. The dividends will be paid on Monday,
12 June 2017.
Share certificates may not be dematerialised or rematerialised between Wednesday, 7 June 2017
and Friday, 9 June 2017, both dates inclusive.
On behalf of the Board of directors
Debra Muller
Company Secretary
18 April 2017
Group statement of comprehensive income
for the period ended
52 weeks 52 weeks
26 February 28 February
2017 2016
Notes Rm Rm
Revenue 2 79 117.8 73 477.3
Turnover 2 77 486.1 72 445.1
Cost of merchandise sold (63 549.4) (59 474.8)
Gross profit 13 936.7 12 970.3
Other trading income 2 1 505.6 971.3
Trading expenses (13 668.5) (12 425.3)
Employee costs (6 619.8) (6 060.6)
Occupancy (2 678.9) (2 337.6)
Operations (2 961.7) (2 848.1)
Merchandising and administration (1 408.1) (1 179.0)
Trading profit 1 773.8 1 516.3
Finance income 2 126.1 60.9
Finance costs (218.6) (117.0)
Share of associate's income 80.2 45.9
Profit before tax before capital items 1 761.5 1 506.1
Losses on capital items (46.3) (32.6)
Loss on sale of property, plant and equipment (20.4) (24.0)
Impairment loss on property, plant and equipment (5.9) -
Impairment loss on intangible assets (6.1) (8.6)
Impairment loss on available-for-sale financial instruments (13.9) -
Profit before tax 1 715.2 1 473.5
Tax (471.7) (408.1)
Profit for the period 1 243.5 1 065.4
Other comprehensive income, net of tax
Items that will not be reclassified to profit or loss 1.5 14.8
Remeasurement in retirement scheme assets 2.1 20.5
Tax on remeasurement in retirement scheme assets (0.6) (5.7)
Items that may be reclassified to profit or loss (96.9) 59.4
Foreign currency translations (64.4) 58.1
Fair value gain on available-for-sale financial instruments (32.5) 1.3
Total comprehensive income for the period 1 148.1 1 139.6
Cents Cents
Basic earnings per share 3 256.67 219.11
Diluted earnings per share 3 250.20 215.05
Headline earnings per share 3 264.35 224.04
Diluted headline earnings per share 3 257.69 219.90
Group statement of financial position
As at As at
26 February 28 February
2017 2016
Notes Rm Rm
ASSETS
Non-current assets
Property, plant and equipment 5 583.6 4 950.9
Intangible assets 984.3 1 004.9
Operating lease assets 198.3 171.6
Financial instruments at fair value through profit or loss 13.7 232.1
Available-for-sale financial instruments - 46.4
Investment in associate 309.7 285.5
Participation in export partnerships - 14.1
Loans 85.1 96.4
Retirement scheme assets 95.3 90.8
Deferred tax assets 218.0 225.1
7 488.0 7 117.8
Current assets
Inventory 5 994.6 5 152.0
Trade and other receivables 3 445.1 3 326.2
Cash and cash equivalents 961.9 982.9
Derivative financial instruments - 6.0
10 401.6 9 467.1
Non-current asset held for sale 212.8 -
Total assets 18 102.4 16 584.9
EQUITY AND LIABILITIES
Equity
Share capital 4 6.0 6.0
Treasury shares (554.3) (63.5)
Fair value reserve - 32.5
Retained earnings 4 652.1 3 882.9
Foreign currency translation reserve (24.5) 39.9
Total equity 4 079.3 3 897.8
Non-current liabilities
Borrowings 84.0 83.0
Operating lease liabilities 1 398.6 1 239.6
Deferred tax liabilities 14.6 9.5
1 497.2 1 332.1
Current liabilities
Trade and other payables 10 490.2 10 500.6
Share-based payment liability - 124.6
Bank overdraft and overnight borrowings 1 800.0 100.0
Borrowings 49.2 446.6
Current tax liabilities 174.8 183.0
Provisions - 0.2
Derivative financial instruments 11.7 -
12 525.9 11 355.0
Total equity and liabilities 18 102.4 16 584.9
Number of shares in issue - thousands 4 488 450.3 488 450.3
Weighted average number of shares in issue - thousands 3 482 237.5 478 873.4
Diluted weighted average number of shares in issue - thousands 3 494 709.6 487 894.0
Net asset value - cents per share (property value based on
directors' valuation) 979.5 910.0
Group statement of changes in equity
for the period ended
Foreign
currency
Share Treasury Fair value Retained translation Total
capital shares reserve earnings reserve equity
Rm Rm Rm Rm Rm Rm
At 1 March 2015 6.0 (60.1) 31.2 3 302.9 (18.2) 3 261.8
Total comprehensive income
for the period - - 1.3 1 080.2 58.1 1 139.6
Profit for the period - - - 1 065.4 - 1 065.4
Remeasurement in retirement
scheme assets - - - 14.8 - 14.8
Foreign currency translations - - - - 58.1 58.1
Fair value gain on available-
for-sale financial instruments - - 1.3 - - 1.3
Transactions with owners - (3.4) - (500.2) - (503.6)
Dividends paid - - - (589.5) - (589.5)
Share purchases - (126.2) - - - (126.2)
Net effect of settlement
of employee share options - 122.8 - (87.2) - 35.6
Share-based payment expense - - - 176.5 - 176.5
At 28 February 2016 6.0 (63.5) 32.5 3 882.9 39.9 3 897.8
Total comprehensive income
for the period - - (32.5) 1 245.0 (64.4) 1 148.1
Profit for the period - - - 1 243.5 - 1 243.5
Remeasurement in retirement
scheme assets - - - 1.5 - 1.5
Foreign currency translations - - - - (64.4) (64.4)
Fair value gain on available-
for-sale financial instruments - - 26.6 - - 26.6
Reclassification to profit or loss - - (59.1) - - (59.1)
Transactions with owners - (490.8) - (475.8) - (966.6)
Dividends paid - - - (753.5) - (753.5)
B share capital issued - - - - - -
Shares received upon unbundling - (412.3) - - - (412.3)
Share purchases - (345.4) - - - (345.4)
Net effect of settlement
of employee share options - 266.9 - (259.5) - 7.4
Share-based payment expense - - - 537.2 - 537.2
At 26 February 2017 6.0 (554.3) - 4 652.1 (24.5) 4 079.3
Group statement of cash flows
for the period ended
52 weeks 52 weeks
26 February 28 February
2017 2016
Rm Rm
Cash flows from operating activities
Trading profit 1 773.8 1 516.3
Adjusted for dividend income (18.0) -
Adjusted for non-cash items 1 356.7 1 220.0
Amortisation 160.6 162.5
Depreciation 820.9 778.4
Equity-settled share-based payment expense 537.2 176.5
Cash-settled share-based payment expense (124.6) 13.0
Movement in net operating lease liabilities 132.3 79.3
Movement in provisions (0.2) (0.8)
Fair value loss on financial instruments at fair value through
profit or loss 242.8 11.1
Dividend in specie received upon unbundling (412.3) -
Cash generated before movements in working capital 3 112.5 2 736.3
Movements in working capital (986.3) 728.7
Movements in trade and other payables (28.1) 1 610.9
Movements in inventory (839.3) (492.4)
Movements in trade and other receivables (118.9) (389.8)
Cash generated from trading activities 2 126.2 3 465.0
Interest received 126.1 60.9
Interest paid (218.6) (117.0)
Cash generated from operations 2 033.7 3 408.9
Dividends received 18.0 -
Dividends paid (753.5) (589.5)
Tax paid (469.2) (335.8)
Cash generated from operating activities 829.0 2 483.6
Cash flows from investing activities
Investment in intangible assets (134.0) (85.7)
Investment in property, plant and equipment (1 736.0) (1 623.1)
Investment in financial instruments at fair value (6.7) (16.1)
Purchase of operations 1.8 (87.6)
Proceeds on disposal of property, plant and equipment 49.8 40.0
Loans repaid 11.3 4.2
Participation in export partnership 14.1 9.3
Retirement obligation (2.4) (0.2)
Cash utilised in investing activities (1 802.1) (1 759.2)
Cash flows from financing activities
Borrowings raised 48.7 -
Repayment of borrowings (445.1) (254.7)
Share purchases (345.4) (126.2)
Proceeds from employees on settlement of share options 8.0 0.3
Cash utilised in financing activities (733.8) (380.6)
Net (decrease)/increase in cash and cash equivalents (1 706.9) 343.8
Net cash and cash equivalents at beginning of period 882.9 524.5
Foreign currency translations (14.1) 14.6
Net cash and cash equivalents at end of period (838.1) 882.9
Consisting of:
Cash and cash equivalents 961.9 982.9
Bank overdraft and overnight borrowings (1 800.0) (100.0)
Notes to the financial information
1. BASIS OF PREPARATION AND ACCOUNTING POLICIES
The summarised audited Group financial statements for the period ended 26 February 2017
are prepared in accordance with the requirements of the JSE Listings Requirements for
abridged reports, and the requirements of the Companies Act applicable to summarised
financial statements. The Listings Requirements require abridged reports to be prepared in
accordance with the framework concepts and the measurement and recognition requirements
of International Financial Reporting Standards (IFRS) and the SAICA Financial Reporting Guides
as issued by the Accounting Practices Committee and Financial Pronouncements as issued by
the Financial Reporting Standards Council and to also, as a minimum, contain the information
required by IAS 34 Interim Financial Reporting.
The summarised Group financial statements do not include all the information required by
IFRS for full financial statements and should be read in conjunction with the 2017 audited
Group annual financial statements. The accounting policies applied in the preparation of
the audited Group annual financial statements, from which the summary Group financial
statements were derived, are in terms of IFRS and are consistent with the accounting policies
applied in the preparation of the previous audited Group annual financial statements.
During the year, various new and revised accounting standards became effective, but their
implementation had no impact on the results of either the current or prior year.
These summarised Group financial statements are not audited but are extracted from
audited information. The audited Group annual financial statements were audited by Ernst
& Young Inc., who expressed an unmodified opinion thereon. The audited Group annual
financial statements and the auditor's report thereon are available for inspection at the
Company's registered office. The directors take full responsibility for the preparation
of these summarised Group financial statements and the financial information has been
correctly extracted from the underlying audited Group annual financial statements. These
summarised Group financial statements have been prepared by the Finance Division under
the supervision of the Chief Finance Officer, Mr Bakar Jakoet CA(SA).
2. REVENUE
52 weeks 52 weeks
26 February 28 February
2017 2016
Rm Rm
Turnover 77 486.1 72 445.1
Finance income 126.1 60.9
Bank balances and investments 81.4 30.0
Trade and other receivables 40.3 27.3
Staff loans and other 4.4 3.6
Other trading income 1 505.6 971.3
Dividend in specie received upon unbundling (note 7) 412.3 -
Franchise fee income 349.8 316.7
Operating lease income 345.3 329.1
Commissions, dividends received and other income 398.2 325.5
79 117.8 73 477.3
3. BASIC, HEADLINE AND DILUTED EARNINGS PER SHARE
52 weeks 52 weeks
26 February 28 February
2017 2016
Cents Cents
% change per share per share
Basic 17.1 256.67 219.11
Diluted 16.3 250.20 215.05
Headline 18.0 264.35 224.04
Diluted headline 17.2 257.69 219.90
Rm Rm
3.1 Basic and headline earnings
Reconciliation between basic and headline
earnings:
Profit for the period 1 243.5 1 065.4
Profit attributable to forfeitable share plan shares (5.7) (16.2)
Basic earnings for the period 1 237.8 1 049.2
Adjustments: 37.2 23.3
Loss on sale of property, plant and equipment 20.4 24.0
Tax effect of loss on sale of property, plant
and equipment (5.7) (6.8)
Impairment loss on property, plant and equipment 5.9 -
Tax effect of impairment loss on property,
plant and equipment (1.7) -
Impairment loss on intangible assets 6.1 8.6
Tax effect of impairment loss on intangible assets (1.7) (2.5)
Impairment loss on available-for-sale financial
instruments 13.9 -
Adjustments attributable to forfeitable share
plan shares (0.2) 0.4
Headline earnings 1 274.8 1 072.9
52 weeks 52 weeks
26 February 28 February
2017 2016
000's 000's
3.2 Number of ordinary shares
Number of ordinary shares in issue (note 4.1) 488 450.3 488 450.3
Weighted average number of shares (excluding
treasury shares) 482 237.5 478 873.4
Diluted weighted average number of ordinary
shares in issue 494 709.6 487 894.0
Reconciliation of weighted average number
of shares to diluted weighted average
number of shares:
Weighted average number of shares (excluding
treasury shares) 482 237.5 478 873.4
Dilutive effect of share awards 12 472.1 9 020.6
Diluted weighted average number of ordinary
shares in issue 494 709.6 487 894.0
The outstanding forfeitable shares, granted in terms of the employee share scheme, that
have not met performance hurdles, had no dilutive impact on the weighted average number
of shares for the current and prior period.
4. SHARE CAPITAL
52 weeks 52 weeks
26 February 28 February
2017 2016
Rm Rm
4.1 Ordinary share capital
Authorised
800 000 000 (2016: 800 000 000) ordinary shares
of 1.25 cents each 10.0 10.0
Issued
488 450 321 (2016: 488 450 321) ordinary shares
of 1.25 cents each 6.0 6.0
000's 000's
The number of shares in issue at end of period
is made up as follows:
Treasury shares held by the Group 6 531.8 1 752.4
Shares allocated under the forfeitable share plan 9 336.5 7 923.0
Shares held outside the Group 472 582.0 478 774.9
488 450.3 488 450.3
The Company can issue new shares to settle the Group's obligations under its employee
share schemes, but issues in this regard are limited, in aggregate, to 5% of total issued share
capital or 24 422 516 (2016: 24 422 516) shares. To date, 10 743 000 (2016: 10 743 000)
shares have been issued, resulting in 13 679 516 (2016: 13 679 516) shares remaining for
this purpose.
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.
52 weeks 52 weeks
26 February 28 February
2017 2016
Rm Rm
4.2 B share capital
Authorised
1 000 000 000 (2016: nil) unlisted, non-convertible,
non-participating, no par value B shares - -
Issued
259 682 869 (2016: nil) unlisted, non-convertible,
non-participating, no par value B shares - -
The Pick n Pay Holdings Limited RF Group included the ultimate holding company, Pick n Pay Holdings
Limited RF, an investment company listed on the JSE (a Stock Exchange in South Africa). The
Company was formed with the sole purpose of holding a controlling interest in Pick n Pay
Stores Limited (and thereby creating the Pick n Pay Stores Group), resulting in a pyramid
control structure.
During the period under review, a new class of shares was created as a result of the
unbundling of the Pick n Pay Holdings Limited RF Group, as approved by shareholders on 25 July 2016.
259 682 869 (2016: nil) B shares were issued to existing controlling shareholders of Pick
n Pay Holdings Limited RF, and are stapled to such ordinary shares and cannot be traded
separately from each other. Stapled ordinary shares, together with B shares, are subject to
restrictions upon disposal. Refer to note 7 for further information.
The holders of B shares are entitled to the same voting rights as holders of ordinary shares,
but are not entitled to any rights to distributions by the Company or any other economic
benefits.
5. TREASURY SHARES
52 weeks 52 weeks
26 February 28 February
2017 2016
Rm Rm
At beginning of period 63.5 60.1
Share purchases 345.4 126.2
Take-up of share options by employees (266.9) (122.8)
Shares received upon unbundling (note 7) 412.3 -
At end of period 554.3 63.5
000's 000's
The movement in the number of treasury
shares held is as follows:
At beginning of period 9 675.4 8 671.9
Shares purchased during the period 4 332.7 2 220.2
Shares sold during the period pursuant to the
take-up of share options by employees (4 016.5) (2 344.7)
Shares allocated under forfeitable share plan 1 417.0 1 128.0
Shares received upon unbundling (note 7) 4 459.7 -
At end of period 15 868.3 9 675.4
Comprises:
Shares allocated under forfeitable share plan 9 336.5 7 923.0
Shares held by the Group 6 531.8 1 752.4
6. OPERATING SEGMENTS
Rest Total
South Africa of Africa operations
Rm Rm Rm
52 weeks to 26 February 2017
Total segment revenue 75 635.8 4 315.7 79 951.5
External revenue 75 635.8 3 482.0 79 117.8
Direct deliveries* - 833.7 833.7
Segment external turnover 74 026.2 3 459.9 77 486.1
Profit before tax** 1 489.7 225.5 1 715.2
Other information
Statement of comprehensive income
Finance income 119.6 6.5 126.1
Finance costs 217.6 1.0 218.6
Depreciation and amortisation 948.0 33.5 981.5
Impairment loss on intangible assets 6.1 - 6.1
Impairment loss on property, plant
and equipment 5.9 - 5.9
Impairment loss on available-for-sale
financial instrument 13.9 - 13.9
Share of associate's income - 80.2 80.2
Statement of financial position
Total assets 16 474.5 1 627.9 18 102.4
Total liabilities 13 617.9 405.2 14 023.1
Investment in associate - 309.7 309.7
Additions to non-current assets 1 792.5 93.7 1 886.2
52 weeks to 28 February 2016
Total segment revenue 70 312.7 4 005.6 74 318.3
External revenue 70 312.7 3 164.6 73 477.3
Direct deliveries* - 841.0 841.0
Segment external turnover 69 300.6 3 144.5 72 445.1
Profit before tax** 1 247.4 226.1 1 473.5
Other information
Statement of comprehensive income
Finance income 52.8 8.1 60.9
Finance costs 116.7 0.3 117.0
Depreciation and amortisation 911.6 29.3 940.9
Impairment loss on intangible assets 8.6 - 8.6
Share of associate's income - 45.9 45.9
Statement of financial position
Total assets 15 261.3 1 323.6 16 584.9
Total liabilities 12 402.9 284.2 12 687.1
Investment in associate - 285.5 285.5
Additions to non-current assets 1 773.6 17.7 1 791.3
* Direct deliveries are issues to franchisees directly by Group suppliers, these are not included in revenue on the
statement of comprehensive income.
** Segmental profit before tax is the reported measure used for evaluating the Group's operating segments performance.
On an overall basis the segmental profit before tax is equal to the Group's reported profit before tax. The Rest of
Africa segment's segmental profit before tax comprises the segment's trading result and directly attributable costs
only. No allocations are made for indirect or incremental cost incurred by the South Africa segment relating to the
Rest of Africa segment.
7. RELATED PARTIES
During the period, in the ordinary course of business, certain companies within the Group
entered into transactions with each other. These inter-group transactions are eliminated
on consolidation.
The Pick n Pay Holdings Limited RF Group included the ultimate holding company, Pick n Pay Holdings
Limited RF, an investment holding company listed on the JSE (a Stock Exchange in South
Africa). The Company was formed with the sole purpose of holding a controlling interest in
Pick n Pay Stores Limited (and thereby creating the Pick n Pay Stores Group), resulting in a
pyramid control structure.
During the period under review, at the General Meeting held on 25 July 2016, shareholders
approved the unbundling of the Pick n Pay Holdings Limited RF Group in order to remove the existing
pyramid control structure. As a result of the unbundling, related party transactions occurred.
This included a dividend in specie share distribution by Pick n Pay Holdings Limited RF, of
R412.3 million, to entities within the Pick n Pay Stores Group who at the time held shares
in Pick n Pay Holdings Limited RF. The dividend in specie consisted of shares in Pick n Pay
Stores Limited. It also included the creation and issuance of a new class of unlisted voting
shares (B shares) in Pick n Pay Stores Limited (refer to note 4.2). These shares were issued
to existing controlling shareholders of Pick n Pay Holdings Limited RF so as to retain the
control structure of the Group as before the unbundling. Refer to the review of operations
for further information on the non-recurring items recorded in these annual financial
statements as a result of the unbundling of the Pick n Pay Holdings Limited RF Group.
In addition, as part of the unbundling, Pick n Pay Holdings Limited RF was purchased by
Pick n Pay Stores Limited for a purchase price of R5.1 million. Pick n Pay Holdings Limited RF
thereby became a wholly owned subsidiary of the Stores Group.
Other than those reported on above, related parties are unchanged from those reported on
at 28 February 2016. For further information please refer to note 27 of the 2017 audited
Group annual financial statements and note 8 of the 2017 audited Company annual financial
statements.
8. FINANCIAL INSTRUMENTS
All financial instruments held by the Group are measured at amortised cost, with the exception
of derivative financial instruments, financial assets at fair value through profit or loss and
available-for-sale financial instruments.
52 weeks 52 weeks
26 February 28 February
2017 2016
Rm Rm
Derivative financial instruments
Forward exchange contracts - level 2 (11.7) 6.0
Financial assets at fair value through
profit or loss
Investment in Pick n Pay Holdings Limited RF
- level 1 - 218.5
Investment in Guardrisk Insurance Company Limited
- level 2 13.7 13.6
Available-for-sale financial instruments
Investment in Pick n Pay Holdings Limited RF
- level 1 - 46.4
The fair value of financial instruments that are not traded in active markets are determined
by using valuation techniques. If all significant inputs required to fair value an instrument
are observable, the instruments are included in level 2.
In the prior period, the fair value of the investment in Pick n Pay Holdings Limited RF shares
was derived from quoted market prices in an active securities market.
The carrying value of all other financial instruments approximate their fair value.
There have been no transfers between level 1, level 2 and level 3 of the fair value hierarchy
during the year.
9. COMMITMENTS
52 weeks 52 weeks
26 February 28 February
2017 2016
Rm Rm
Authorised capital expenditure
Contracted for 275.1 395.9
Property 26.5 78.8
Furniture, fittings, equipment and vehicles 230.1 211.5
Intangible assets 18.5 105.6
Not contracted for 1 524.9 1 783.1
Property 30.4 27.5
Furniture, fittings, equipment and vehicles 1 404.9 1 694.9
Intangible assets 89.6 60.7
Total commitments 1 800.0 2 179.0
10. Subsequent events
Voluntary severance programme (VSP) - March 2017
Pick n Pay formalised and communicated a voluntary severance programme (VSP) during
March 2017. Participation in the scheme is entirely voluntary, and acceptance of applications
is at the Group's discretion. The VSP and financial consequences thereof are expected to be finalised
by end of April 2017.
Number of Stores
28 February Converted Converted 26 February
2016 Opened Closed openings closings 2017
COMPANY-OWNED
Pick n Pay 596 68 (3) - - 661
Hypermarkets 20 - - - - 20
Supermarkets 226 11 - - - 237
Local 17 14 - - - 31
Clothing 134 24 (2) - - 156
Liquor 196 19 (1) - - 214
Pharmacy 3 - - - - 3
Boxer 208 25 (4) - - 229
Supermarkets 136 11 (3) - - 144
Build 24 7 - - - 31
Liquor 27 7 - - - 34
Punch 21 - (1) - - 20
Total company-owned 804 93 (7) - - 890
FRANCHISE
Pick n Pay
Supermarkets 289 13 (3) - - 299
Family 269 13 (3) - - 279
Mini-markets 19 - - - - 19
Daily 1 - - - - 1
Spaza 1 5 - - - 6
Express 79 32 - - - 111
Clothing 17 - - - - 17
Liquor 163 20 (2) - - 181
Total franchise 549 70 (5) - - 614
Total Group stores 1 353 163 (12) - - 1 504
TM Supermarkets 57 1 (2) - - 56
Total with TM Supermarkets 1 410 164 (14) - - 1 560
AFRICAN FOOTPRINT
- included in total stores above 130 12 (2) - - 140
Pick n Pay company-owned 11 6 - - - 17
Boxer company-owned 5 - - - - 5
Pick n Pay franchise 57 5 - - - 62
TM Supermarkets associate 57 1 (2) - - 56
AFRICAN FOOTPRINT
- by country 130 12 (2) - - 140
Botswana 10 2 - - - 12
Lesotho 3 - - - - 3
Namibia 35 3 - - - 38
Swaziland 14 - - - - 14
Zambia 11 6 - - - 17
Zimbabwe 57 1 (2) - - 56
CORPORATE INFORMATION
BOARD OF DIRECTORS
Executive
Richard Brasher (CEO)
Richard van Rensburg (Deputy CEO)
Aboubakar (Bakar) Jakoet (CFO)
Suzanne Ackerman-Berman
Jonathan Ackerman
Non-executive
Gareth Ackerman (Chairman)
David Robins
Independent non-executive
Alex Mathole*
Audrey Mothupi
David Friedland
Jeff van Rooyen
Hugh Herman
Lorato Phalatse
REGISTERED OFFICE
Pick n Pay Office Park
101 Rosmead Avenue
Kenilworth
Cape Town 7708
Tel +27 21 658 1000
Fax +27 21 797 0314
Postal address
PO Box 23087
Claremont
Cape Town 7735
REGISTRAR
Computershare Investor Services
Proprietary Limited
Rosebank Towers
15 Biermann Avenue
Rosebank 2196
Tel +27 11 370 5000
Fax +27 11 688 5248
Postal address
PO Box 61051
Marshalltown 2107
JSE LIMITED SPONSOR
Investec Bank Limited
100 Grayston Drive
Sandton 2196
AUDITORS
Ernst & Young Inc.
ATTORNEYS
Edward Nathan Sonnenberg
PRINCIPAL TRANSACTIONAL BANKERS
Absa Limited
First National Bank
COMPANY SECRETARY
Debra Muller
Email: demuller@pnp.co.za
PROMOTION OF ACCESS TO
INFORMATION ACT
Information Officer - Penny Gerber
Email: pgerber@pnp.co.za
INVESTOR RELATIONS
David North
Email: dnorth@pnp.co.za
Penny Gerber
Email: pgerber@pnp.co.za
WEBSITE
Pick n Pay: www.picknpay.co.za
Investor relations: www.picknpayinvestor.co.za
CUSTOMER CARELINE
Tel +27 800 11 22 88
Email: customercare@pnp.co.za
ONLINE SHOPPING
Tel +27 860 30 30 30
www.picknpay.co.za
* Appointed on 24 October 2016.
www.picknpayinvestor.co.za
Date: 19/04/2017 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
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