Wrap Text
Reviewed Annual Results for the year ended 30 September 2025 and Dividend Declaration
Pepkor Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2017/221869/06)
Share code: PPH
Debt code: PPHI
ISIN: ZAE000259479
LEI: 3789006D677C34F69875
("Pepkor", the "company" or the "group")
REVIEWED ANNUAL RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 AND
DIVIDEND DECLARATION
Pepkor grows HEPS* by 23.4% – strategic delivery coupled with market-leading
results
Continuing operations
Performance highlights
- R95.3 billion revenue +12.0%
- 39.8% gross profit margin +150 bps
- R11.1 billion operating profit +13.2%
- 161 cents HEPS +14.8% (+23.4% normalised*)
- R10.9 billion cash generated
- 24.0% return on net assets
- 53.0 cents dividend declared +9.2%
- Continued market share dominance
- 2 out of 3 babieswear sales
- 1 out of 2 kidswear sales
- 3 out of 4 schoolwear sales
- 1 out of 5 homeware sales
- 8 out of 10 prepaid cellular handsets sold
- Additional overall gains in market share**
- 6 000th store opened
- R60 billion throughput enabled by Flash
- Top 30 FTSE Responsible Investment index inclusion
Strategic initiatives implemented during FY25
- Off-price market entry – Choice Clothing (strategic acquisition)
- Adultwear expansion – Ayana launched
- Distribution capability leveraged – Skooch courier launch and Dark store expansion
- Customer platform expansion – More than 10 million customers added on A+, FoneYam,
Abacus and +more
Year ended Year ended
30 September 30 September
Results from continuing operations 2025 2024 % change
Revenue (Rm) 95 340 85 136 12.0%
Operating profit before capital items
(Rm) 11 092 9 802 13.2%
Earnings per share (cents) 153.0 63.4 > 100%
Headline earnings per share (cents) 161.0 140.2 14.8%
Headline earnings per share on a
normalised basis* (cents)
161.0 130.5 23.4%
Dividend per share (cents) 53.0 48.5 9.2%
Net asset value per share (cents) 1 712.2 1 588.5 7.8%
Results from total operations –
including discontinued operations
Earnings per share (cents) 153.0 56.4 > 100%
Headline earnings per share (cents) 161.0 148.5 8.4%
* Normalised headline earnings per share (HEPS) growth is adjusted for the remeasurement of uncertain tax
provisions in the prior year (FY24), reflecting a more representative growth rate for the current year (FY25).
** Retail Liaison Committee & GfK 12mma data – September 2025.
Group performance
Pepkor delivered record profit growth in the 2025 financial year, underpinned by strong
operational performance in addition to successful execution of a number of strategic initiatives.
These initiatives have entrenched the group's unique business model, leveraging its physical
retail footprint to fuel a digital ecosystem anchored in solving customer needs.
Pepkor's core retail business outperformed the market, delivering strong trading and market
share gains. The group further entrenched its position as a leading integrated retail and
consumer platform, expanding its customer reach across both physical and digital channels,
surpassing 6 000 retail stores and adding more than 10 million customers across its digital
ecosystem this year.
The Flash business maintained strong momentum within the informal and fintech market,
leveraging its extensive trader network and fintech ecosystem reach to further accelerate its
growth and profitability.
While the consumer and operating environment improved somewhat compared to the previous
year with lower inflation and unemployment and modest GDP growth, some structural
challenges remain. Despite these headwinds, Pepkor's resilient business model once again
proved its defensiveness and adaptability, underpinning the group's ability to deliver sustainable
long-term value creation.
RETAIL SEGMENTS
Group merchandise sales (sales) increased by 8.8% for the year, and like-for-like sales
increased by 6.5%. In southern Africa (excluding PEP Africa and Avenida), like-for-like sales
increased by 7.4%. Outside southern Africa (PEP Africa and Avenida), like-for-like sales
increased by 8.9% in constant currency but decreased by 3.1% in rand terms.
Trading in South Africa during the first half of FY25 benefited from the introduction of the two-
pot retirement system, which increased consumer spending during the first half. Improved
product availability and price execution supported performance, and the group ended the year in
a healthy and clean stock position.
PEP increased sales 10.8% (like-for-like +9.3%) and opened 95 new stores, maintaining Best
Price Leadership. 9.2 million handsets were sold (+12%) and PEP Home opened 45 new
stores.
Ackermans increased sales by 7.2% (like-for-like +7.1%) and sold 3.1 million handsets (+17%).
It also expanded into menswear with plans to launch a beauty range.
The Speciality division increased sales by 8.3% (like-for-like +3.0%). Tekkie Town made a
strong recovery, Dunns performed well, and Refinery expanded. Ayana was launched in 32
stores.
In constant currency terms, PEP Africa achieved 21.5% sales growth (like-for-like +22.3%) and
Avenida increased sales by 12.9%. Like-for-like sales in Avenida increased by 1.8%, making a
strong recovery in the fourth quarter (+8.8%).
Lifestyle increased sales by 7.2% (like-for-like +4.7%), online sales increased by 15%, and 43
new stores were opened.
FINTECH SEGMENT
The FinTech segment increased revenue by 31.1% to R16.6 billion. Gross profit margin expanded
by 840 basis points to 56.4% and operating profit increased by 52.3% to R2.2 billion.
Financial services
Retail credit now facilitates 16% of sales across the group's retail brands, with 84% of sales
generated in cash. The A+ credit book increased by 40.1% and expanded to 3.5 million active
accounts, with a record 1.3 million new accounts added during the year. The proportion of
customers able to purchase remained stable at 74%.
Pepkor continued to gain market share in cellular and sold 13.5 million handsets (+17%),
accounting for eight out of ten prepaid handsets sold in South Africa (GfK). FoneYam, the
group's innovative cellular handset rental product, delivered strong growth, surpassing 2 million
active customers, and Abacus insurance revenue increased by 78.4%.
Informal market
Flash, the group's fintech and informal market platform, increased throughput by 23% to R60
billion, with 170 000 active traders and a 37.6% increase in tapped value to R21 billion.
Revenue rose 13.7% and operating profit increased by 32.7%.
Strategic initiatives implemented after FY25
Home expansion (strategic acquisitions)
- The OK Furniture and House & Home non-RSA component, representing 66 of the total
400 stores, was implemented on 1 October 2025 (strategic acquisition).
- The Boardmans online brand was acquired as part of the Legit, Swagga and Style
acquisition, implemented on 2 November 2025.
Adultwear expansion
- Legit, Swagga and Style were acquired with 469 stores, and the transaction was
implemented on 2 November 2025 (strategic acquisition).
- The new Refinery format was launched in October 2025, expanding the brand into the
activewear category.
- The sub-scale Shoe City brand will be closed and consolidated into other group brands
during the first half of FY26.
Omnichannel expansion
- PEP Home launched online in October 2025, with more than 5 000 orders received in
the first few weeks.
Financial services capability expansion
- Pepkor plans to establish a banking presence in South Africa, combining its established
financial services capability, retail footprint, ability to acquire customers, and brand
equity as a platform for expansion. Section 13(1) approval was received from the
Prudential Authority in November 2025.
- Cloudbadger, a South Africa-based fintech software provider offering a modern financial
services platform, was acquired on 1 October 2025 (strategic acquisition).
Outlook
Pepkor's FY25 results highlight the group's strong execution of its unique business model,
converting physical retail reach into a digital, transactional ecosystem across retail, financial
services, telecommunications, fintech and the informal market. Record profitability in FY25 has
established a solid foundation for FY26.
In the year ahead, the group will focus on integrating recent acquisitions, consolidating new
retail formats and expanding its digital and omnichannel capabilities. Growth in fintech and
financial services remains a strategic priority, with opportunities to enhance customer
engagement and accessibility while maintaining cost discipline.
Pepkor will open 250 to 300 new stores in FY26, extending its physical presence and improving
customer access. Targeted mergers and acquisitions will continue to strengthen the group's
fintech offerings and diversify its geographic footprint. Healthy stock levels are expected to
support full-price sales and maintain gross profit margins.
Trading for the seven weeks ended 15 November 2025 must be viewed in the context of the
group's strong prior-year base, which benefited from the initial tranche of two-pot withdrawals.
Pepkor has the highest base compared to retail peers.
For the seven-week period ended 15 November 2025, group sales increased by 5.3% from a
prior-year base of 14.6%, in line with management's plans and as anticipated. Healthy stock
levels are expected to further enable full-price sales and sustain gross profit margins.
Dividend declaration
The board declared a cash dividend of 52.95493 cents per ordinary share payable to shareholders
on Monday, 19 January 2026. The dividend has been declared out of income reserves.
The salient dates of the dividend declaration are:
Last date to trade cum dividend Tuesday, 13 January 2026
Date trading commences ex-dividend Wednesday, 14 January 2026
Record date Friday, 16 January 2026
Payment date Monday, 19 January 2026
Share certificates may not be dematerialised or rematerialised between Wednesday, 14 January
2026 and Friday, 16 January 2026, both days inclusive. The maximum local dividend tax rate is
20%. The net local dividend amounts to 42.36394 cents per share for shareholders liable to pay
dividend tax at the maximum rate. The issued ordinary share capital of Pepkor Holdings Limited
as at the date of this declaration is 3 693 484 244 ordinary shares. Pepkor Holdings Limited's tax
reference number is IT9542320180.
Results webcast
A webcast of the results presentation will be broadcast at 10:00 am (SAST) on Tuesday, 25
November 2025. The webcast registration link is https://www.corpcam.com/Pepkor25112025
and can be accessed on the Pepkor website: www.pepkor.co.za.
Short-form announcement
This short-form announcement (this announcement) is the responsibility of the directors. It should
be noted that this announcement is only a summary of the information contained in the detailed
announcement and therefore does not contain full or complete details.
Any investment decisions by investors and/or shareholders should be based on the information
in the detailed announcement. The detailed announcement can be accessed at
https://senspdf.jse.co.za/documents/2025/jse/isse/pphe/FY25.pdf
The reviewed condensed consolidated financial statements for the year ended 30 September
2025 have been reviewed by PricewaterhouseCoopers Inc., who expressed an unmodified review
conclusion. The unmodified review opinion forms part of the detailed announcement.
Copies of the detailed announcement are also available for viewing on the company's website at
https://pepkor.co.za/wp-content/uploads/Pepkor-reviewed-results-for-the-year-ended-30-
September-2025.pdf.
Parow
25 November 2025
Equity and Debt sponsor
Investec Bank Limited
Date: 25-11-2025 07:30:00
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