Pick n Pay anticipates a 20%-10% decline in headline earnings per share for the first half of 2024, despite strong performance from Boxer and ongoing recapitalisation efforts.
The group reported mixed results across segments on Thursday, with online sales surging 60.6% amidst challenges in the core Pick n Pay brand.
The supermarket group said it expected half year diluted headline earnings per share to be between -140.59 to -128.87 cents per share from the -117.16 loss per share reported at the same time last year.
The group’s directors said the results would likely reflect another strong performance from the Boxer segment, while the Pick n Pay segment's refreshed management team had begun to execute on the turnaround plan.
A rights offer was successfully concluded in August, while shareholders expressed their support at the October 1, 2024 general meeting to proceed with the listing of Boxer on the Main Board of the JSE towards the end of the year.
Group sales increased 3.7%, and by 2.9% on a like-for-like basis.
Pick n Pay sales declined -0.3% (+0.5% like-for-like), with Pick n Pay SA sales increasing 0.1% (1.1% like-for-like). Pick n Pay sales growth lagged like-for-like sales growth due to the closure of 24 net supermarkets during the period, 10 corporate stores and 14 franchise stores.
Boxer sales grew 12% (7.7% like-for-like). Boxer's sales performance was driven by strong like-for-like sales, complemented by new store openings. Boxer opened 12 net new stores, and anticipated a ramp up in new store openings in the second half.
Clothing sales growth in standalone stores was 9.8% (0.2% like-for-like), with like-for-like growth being impacted by the late arrival of winter weather as well as port delays.
“Despite these challenges, Pick n Pay Clothing continued to gain market share during the period,” the group said.
Online sales increased by 60.6% for the period, sustaining the strong 74.4% online sales growth momentum reported for the 2024 financial year.
Group South African internal selling price inflation was 4.3%, reflecting a sharp decline from the 7.3% reported for 2024 overall. The first half results are expected to be released on October 28.
BUSINESS REPORT