Wrap Text
Condensed consolidated interim financial results for the 26 weeks ended 30 August 2026 ("H1 FY27")
Pick n Pay Stores Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1968/008034/06)
ISIN: ZAE000005443
JSE and A2X share code: PIK
("Pick n Pay" or "the Group")
CONDENSED CONSOLIDATED INTERIM FINANCIAL RESULTS FOR THE 26 WEEKS ENDED 30 AUGUST 2026 ("H1 FY27")
Key Group financial indicators 26 weeks to 26 weeks to
30 August 2026 31 August 2025 %
H1 FY27 H1 FY26* improvement
Turnover R60.5 billion R59.0 billion 2.4%
Trading profit R490 million R310 million 58.1%
Trading profit margin 0.8% 0.5%
Loss before tax and capital items (R139 million) (R317 million) 56.2%
Headline loss (R299 million) (R439 million) 31.9%
Headline loss per share (HEPS) (40.71 cents) (59.77 cents) 31.9%
Basic loss per share (EPS) (36.77 cents) (67.53 cents) 45.6%
*H1 FY26 turnover restated to now include certain items previously recognised within costs of merchandise sold. H1 FY26 trading profit is not impacted.
H1 FY27 Group Highlights
- Progress on Pick n Pay turnaround initiatives: including the successful agreement reached on the restructure of the store labour model and the withdrawal
of the Section 189 consultation process
- Pick n Pay segment trading profit recovery: Pick n Pay segment trading loss reduced by 16.9%, driven by gross profit margin accretion and contained
trading expense growth;
- Solid Boxer performance: Boxer opened its 600th store and increased profit before tax and capital items by 10.6%;
- Group profit recovery: Group Headline loss reduced by 31.9% to R299 million;
- Balance sheet strength: Group net cash on hand of R10.0 billion, including R7.7 billion within Pick n Pay.
Group results summary
The Group reported a 56.2% (R178 million) year-on-year improvement in loss before tax and capital items to R139 million, against a loss of R317 million for
H1 FY26. The profit improvement was delivered at the operating level, with trading profit improving by R180 million, while net finance costs were approximately
flat. The Headline loss reduced by 31.9% to a loss of R299 million, after taking into account the Boxer non-controlling interest (up 34.1% to R232 million).
Group turnover increased 2.4%, with 6.3% growth from Boxer and the Pick n Pay segment approximately flat. The gross profit margin expanded 0.7% to 18.8%,
with improvement in both the Pick n Pay and Boxer gross profit margin. Other income grew 4.8%. Trading expenses increased by 4.5%, driven by the Boxer store
rollout. The R180 million (58.1%) Group trading profit improvement to R490 million was the combined result of a R75 million increase in Boxer trading profit
(to R1.0 billion) and a R105 million reduction in the Pick n Pay trading loss (to R0.5 billion).
Subsequent event: successful agreement reached on restructure of the store labour model
The Group is pleased to announce the successful conclusion and withdrawal of the Section 189A consultation process initiated in May 2026. The agreement reached
with our labour partners delivers the flexibility, efficiency and market alignment sought by the Group's Pick n Pay segment at the commencement of the process.
It introduces a simplified and more competitive store labour model that supports more flexible and effective labour scheduling, improved cost management and a
stronger long-term position for Pick n Pay's core supermarket business. The Group acknowledges the constructive and respectful manner in which our labour partners
and employee representatives engaged throughout the process. Together with Pick n Pay's broader turnaround initiatives, this is a critical step in the journey
to profit break-even and long-term sustainability.
Group strategic plan and outlook
The Group faced a challenging external environment in H1 FY27, given the impact of increased fuel prices from May 2026 on both our customer's wallets and our
cost base. Despite this, both Pick n Pay and Boxer managed to deliver improved results on a year-on-year basis.
While the Pick n Pay segment delivered a reduced loss, the R1.1 billion loss at the trading profit after lease interest level indicates that substantial further
profitability improvement must still be delivered to return Pick n Pay to a sustainable basis.
The customer experience is being substantially improved, and this is supporting our like-for-like sales growth. The initial benefits of the turnaround elements
that have already been put in place are beginning to show in the financial results, with gross profit margin steadily recovering and trading expense growth
contained. Significant further benefits are set to flow over the coming two and a half years, as we approach our FY29 trading profit after lease interest
breakeven target.
Ongoing elevated oil prices, and the consequent impacts on food inflation, logistical costs and the ability of the consumer to spend, mean that visibility on
the trading outlook for the remainder of FY27 is low. Given this, the Group continues to focus on operating levers within our control, where we have
substantial opportunity.
In the 4 weeks post period-end, the Pick n Pay segment's South African supermarket like-for-like sales growth was slightly ahead of that achieved in H1 FY27.
We thank all Boxer and Pick n Pay colleagues, and our valued franchise partners, for their commitment and contribution as we rebuild and re-energise the Group
for a prosperous future.
James Formby Sean Summers
Chair Chief Executive Officer
26 October 2026
ABOUT THIS ANNOUNCEMENT
This announcement is the responsibility of the directors. It is only a summary of the information contained in the Group's interim H1 FY27 results and does not
contain full details. Any investment decision should be based on the full interim results published on the Group's website at www.picknpayinvestor.co.za and on
the JSE cloudlink at: https://senspdf.jse.co.za/documents/2026/jse/isse/PIK/PIKFY27H1.pdf The information contained in this announcement has neither been audited
nor reviewed by the Group's external auditors.
This announcement has been prepared in compliance with the JSE Limited Listings Requirements.
FORWARD LOOKING INFORMATION
This announcement contains certain forward-looking statements which relate to the possible future performance and financial position of the Group.
All forward-looking statements are solely based on the views and considerations of the directors. These statements involve risk and uncertainty as they relate
to events and depend on circumstances that may or may not occur in the future. The Group does not undertake to update or revise any of these forward-looking
statements publicly, whether to reflect new information, future events or otherwise. These forward-looking statements have not been reviewed or reported on
by the Group's external auditors.
RESULTS WEBCAST
The Group will hold an in-person and online results presentation at 8:30 this morning. All interested stakeholders are invited to watch the webcast, which can
be accessed using the following link: www.corpcam.com/pnp26102026. The slides accompanying the results presentation, which will include information on the
Group's strategy, will be available on the Pick n Pay Investor Relations website at www.picknpayinvestor.co.za shortly before the commencement of the
presentation. A playback of the webcast will be made available on our website approximately 2 hours after the presentation.
ABOUT PICK N PAY STORES LIMITED
The Pick n Pay Stores Limited Group is a leading South African grocery, clothing, liquor, and general merchandise retailer, employing 90 000 people through
its owned and franchise operations, across its Pick n Pay and Boxer banners. The Group is managed through its Pick n Pay and Boxer divisions.
For further information on Pick n Pay and its underlying businesses, please visit www.picknpayinvestor.co.za.
DIRECTORS OF PICK N PAY STORES LIMITED
Executive directors
Sean Summers (CEO), Tina Rookledge (CFO)
Independent non-executive directors
James Formby (Chair), Haroon Bhorat, Aboubakar Jakoet, Thabo Leeuw, Annamarie van der Merwe, Grant Pattison, Pooven Viranna
Non-executive directors
Gareth Ackerman, Suzanne Ackerman, Jonathan Ackerman
CORPORATE INFORMATION
Registered office
101 Rosmead Avenue, Kenilworth, Cape Town 7708
Company Secretary
Vaughan Pierce
Email address: CompanySecretary@pnp.co.za
Investor relations
Stephen Carrott
Email address: StephenCarrott@pnp.co.za
Sponsor
Rand Merchant Bank (a division of FirstRand Bank Limited)
Transfer secretaries
Computershare Investor Services Proprietary Limited
Date: 26/10/2026 07:05:00
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