Wrap Text
Voluntary trading and business update for the ten months ended 31 July 2026
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”)
VOLUNTARY TRADING AND BUSINESS UPDATE FOR THE TEN MONTHS ENDED 31
JULY 2026
Pepkor provides this voluntary trading and business update for the ten months ended 31 July
2026 (“10MFY26”, or “the period”) to update shareholders and noteholders on the group’s trading
performance, the prevailing consumer environment and progress against its strategic growth
priorities ahead of the 2026 financial year-end.
Pepkor’s senior management team is scheduled to attend the RMB Morgan Stanley Big Five
investor conference on 15 September 2026, where it will engage with investors on the matters
set out above.
Highlights
- +11.9% revenue growth (+7.3% excluding acquisitions)
- +3.1% like-for-like sales growth (2-Year CAGR: +4.9%)
- Outperformed the market with market share gains
- Improved gross profit margin
- Continued expansion in FoneYam and Abacus
- PlusB banking proposition development on track and within target
- +19.0% growth in Flash throughput
- R2 billion in capital unlocked through sale-and-leaseback transaction
- Chief Operating Officer succession confirmed
1. TRADING UPDATE - Continuing operations
Group revenue from continuing operations increased by 11.9% to R89.2 billion for the period.
Excluding acquisitions, group revenue increased by 7.3%.
Revenue in the comparable period increased by 12.3%, while revenue on a 2-Year CAGR basis
increased by 9.7% (excluding acquisitions). Performance in the comparable period benefited from
improved product availability in stores and the introduction of the two-pot retirement system, which
supported elevated consumer spend and created a demanding base.
RETAIL SEGMENTS - Pepkor’s retail-powered consumer platform
Revenue growth by 2-Year
segment Growth excl. CAGR excl.
10MFY26 10MFY25 Growth acquisitions acquisitions
Rm Rm % % %
Clothing and general 63 827 57 836 10.4% 6.1% 7.8%
merchandise segment
(CGM)
Furniture, appliances 12 308 10 579 16.3% 6.3% 7.2%
and electronics
segment (FAE)
Trading performance
Group sales increased by 9.8% and by 5.2% when excluding acquisitions. On a 2-Year CAGR
basis, sales increased by 7.1% (excluding acquisitions). Like-for-like sales, which by definition
excludes acquisitions, increased by 3.1% (2-Year CAGR: +4.9%) - ahead of the market.
The consumer environment in Southern Africa remained subdued, according to Retailers Liaison
Committee (“RLC”) data, indicating sales moving outside the RLC network and lower customer
share of wallet spend on clothing, footwear, home and beauty categories. Promotional activity
also remained elevated across the market.
Against this backdrop, the group outperformed the market and gained market share, based on
July 2026 RLC data, adjusted for acquisitions and brand closures.
Performance was led by PEP, the group’s discount leader. Performance in Ackermans was
impacted by negative growth in lay-bys and low levels of RSP inflation. A number of significant
merchandise initiatives have been implemented to improve product execution. Speciality
performed well relative to the market and the newly acquired Legit business exceeded
expectations.
The home furnishings and consumer electronics market remained challenging, however the
Lifestyle business delivered a resilient performance, including the non-South African component
of the newly acquired OK Furniture business.
Avenida continued to deliver strong trading momentum, while PEP Africa traded well.
Total sales growth 10MFY26 10MFY25 Contribution to
total sales
10MFY26
Retail segments* 9.8% 9.0% 100%
Clothing & general merchandise 84%
8.7% 9.2%
segment*
- PEP 5.4% 11.4% 43%
- Ackermans 0.4% 7.8% 23%
- Speciality* 51.5% 11.2% 10%
- PEP Africa** 6.4% 23.5% 3%
- Avenida** 13.7% 11.9% 5%
Furniture, appliances & 16%
15.9% 8.0%
electronics segment - Lifestyle
Like-for-like sales growth 10MFY26 10MFY25 2-Year CAGR
Retail segments* 3.1% 6.8% 4.9%
Clothing & general merchandise segment* 2.7% 7.1% 4.9%
- PEP 3.4% 10.0% 6.6%
- Ackermans -1.3% 7.6% 3.1%
- Speciality* 4.3% 4.5% 4.4%
- PEP Africa** 6.6% 24.4% 15.1%
- Avenida** 8.9% 0.1% 4.4%
Furniture, appliances & electronics segment 5.0% 4.9% 4.9%
- Lifestyle
* Retail segments, CGM and Speciality exclude Shoe City classified as discontinued operations.
**Constant currency sales growth is reported for PEP Africa and Avenida.
Group cash sales increased by 9.0% and lay-by sales reduced by 2.0%. Credit sales increased
by 24.3% and contribution increased to 18.0% from 16.0% in the comparable period.
As previously guided, the pace of A+ retail credit extension has moderated following an
exceptional three-year period of new account acquisition, with continued focus on disciplined
credit risk management.
Group online sales increased by 38.9%, including 81.9% growth in the CGM segment. The +more
customer value platform reached more than 18 million members by the end of July 2026, further
strengthening the group’s digital reach and customer engagement.
During the period, the group further expanded its retail footprint to 6 677 stores, comprising 195
new stores opened and 541 stores added through acquisitions.
FINANCIAL SERVICES SEGMENT - Multiplying customer value
10MFY26 10MFY25 Growth
Rm Rm %
Revenue 4 897 3 808 28.6%
The financial services segment continued its rapid expansion. FoneYam cellular device rental
active customers reached 2.6 million, increasing by 14.7% for the period. The take-up rate of a
second FoneYam rental by customers after completing their first, continues to exceed
expectations - effectively extending the customer lifetime value of the FoneYam product by an
additional 18 months.
Abacus Insurance continued to expand its embedded and bundled insurance offerings across the
group’s brands, leveraging the Pepkor ecosystem and distribution capability.
In Capfin, credit extension has been curtailed with plans to reduce the Capfin book with future
focus on growing credit through PlusB, the group’s banking proposition.
PlusB is expected to launch in the second half of FY27, subject to regulatory approvals. The total
build cost remains on track to be below R1 billion and within target.
INFORMAL MARKET PLATFORM SEGMENT - Growing participation in the informal market
10MFY26 10MFY25 Growth
Rm Rm %
Revenue 8 179 7 527 8.7%
The Flash business increased total throughput by 19.0% to R58.4 billion, driven by high growth
in aggregation and voucher sales.
The transaction to merge the Flash and Shop2Shop businesses to create FintechCo, announced
on 22 July 2026, represents a significant step in expanding the group’s participation in the high-
growth informal market, while further diversifying its earnings. The combination will create a
scaled fintech platform serving traders across the informal market, with annual throughput of more
than R200 billion. The transaction remains subject to the fulfilment of conditions precedent and is
expected to take approximately nine months to conclude.
Voluntary FY26 earnings guidance
Pepkor’s defensive value proposition remains highly relevant in the current environment, with the
group continuing to gain market share and PEP maintaining its position as a clear discount leader.
This performance demonstrates the resilience of the group’s core customer proposition, even as
pressure on consumer disposable income weighs on discretionary spending and market growth.
FY26 earnings growth is expected to be moderated by three principal factors: the subdued retail
environment, a high comparative base, and strategic investments in the group’s long-term growth
platforms, including building the group’s PlusB banking capability.
The board remains confident in the group’s medium-term HEPS growth guidance of 10% to 15%
for FY27 and beyond, based on the group’s defensive market position, resilient performance and
implementation of strategic projects.
Shareholders and noteholders are advised that headline earnings per share (“HEPS”) and
earnings per share (“EPS”) for the year ended 30 September 2026, when compared to the
previous corresponding period, are expected to be within the ranges reflected in the table below:
Continuing operations FY26 expected FY26 expected FY25 actual
range change (cents)
(cents) (%)
EPS 149.3 to 164.6 -2% to 8% 153.0
HEPS 158.9 to 174.9 -1% to 9% 160.3
Normalised HEPS** 165.1 to 181.3 2% to 12% 161.8
Total operations - including FY26 expected FY26 expected FY25 actual
discontinued operations range change (cents)
(cents) (%)
EPS 146.3 to 161.6 -4% to 6% 153.0
HEPS 155.7 to 171.8 -3% to 7% 161.0
** Normalised HEPS excludes investments made in the group’s PlusB banking capability.
Discontinued operations
As reported previously, the Shoe City business within the Speciality division was closed during
the first half of the 2026 financial year and is therefore classified as discontinued operations.
Pro forma constant currency disclosure
The Pepkor group discloses constant currency information to indicate PEP Africa and Avenida’s
performance in terms of sales growth, excluding the effect of foreign currency fluctuations. To
present this information, current period (10MFY26) turnover for these businesses reported in
currencies other than the rand is converted from local currency actuals into rand at the actual
average exchange rates per country for the prior corresponding period (10MFY25). The table
below sets out the approximate average rand cost for one unit as well as percentage change in
sales, based on the actual continuing results for the period, in reported currency and constant
currency, for the basket of currencies in which these businesses operate.
% change in sales compared to the prior Reported currency Constant currency
period
PEP Africa 10.5% 6.4%
Avenida 14.7% 13.7%
Pro forma constant currency has been prepared for illustrative purposes only and, because of its
nature, may not fairly present the group's financial position, changes in equity, results of
operations or cash flows
The trading update and pro forma constant currency disclosure is the responsibility of the directors
and has not been reviewed and reported on by the group’s external auditors.
2. BUSINESS UPDATE
2.1 STRATEGIC CAPITAL ALLOCATION - STRUCTURED SALE-AND-LEASEBACK OF
DISTRIBUTION CENTRE PORTFOLIO
In line with Pepkor’s disciplined capital allocation framework and focus on optimising returns, the
group has successfully concluded a structured sale and leaseback of three prime distribution
centres (“DC”s). These properties — comprising the Ackermans Hammarsdale DC, the PEP
Hammarsdale DC, and the PEP Kuils River DC — have been transferred to Badger Properties
Proprietary Limited (“Badger Properties”) with Pepkor retaining a 35% minority interest.
This transaction unlocked approximately R2 billion in capital and these proceeds will be
redeployed to fund high-yielding growth opportunities across the group and reduce net debt. This
will optimise overall capital efficiency and further strengthen Pepkor’s balance sheet.
To ensure absolute operational continuity, Pepkor has secured 15-year 'triple net' lease
agreements. The distribution centres will continue to be operated by PEP and Ackermans with no
change to daily operations.
Through this transaction, Pepkor has anchored the establishment of Badger Properties as a
black-owned and managed property fund, cementing a long-term partnership that creates a
sustainable, transformed property entity with significant growth prospects, fully aligned with South
Africa’s B-BBEE objectives.
The transaction became effective on 8 September 2026, following the fulfilment of all conditions
precedent and is uncategorised in terms of section 8 of the JSE Listings Requirements.
2.2 LEADERSHIP TRANSITION: APPOINTMENT OF GROUP COO AND SECURED
STRATEGIC CONTINUITY
Reflecting Pepkor’s commitment to proactive, structured succession planning, the Pepkor Board
is pleased to announce a leadership transition within its executive team, with Sean Cardinaal
stepping down as Chief Operating Officer (“COO”) at the conclusion of his fixed-term contract on
31 December 2026. The Board expresses its sincere appreciation to Sean for his exceptional
leadership and significant contribution to Pepkor during his tenure.
The Board is pleased to announce that Garth Napier, currently Pepkor’s Chief Commercial
Officer, will succeed Sean as COO, effective 1 January 2027. Garth has an outstanding track
record of executive leadership and a deep understanding of Pepkor’s corporate culture and the
broader African retail landscape. Having served as the Managing Director of Pep Africa,
managing retail operations across seven countries, and most recently as Pepkor’s Chief
Commercial Officer, Garth has led the group's fintech strategy, including financial services.
Beyond Pepkor, Garth’s corporate experience includes serving as the Managing Director of Old
Mutual Insure and leading Edcon’s Discount and Specialty Divisions.
To ensure a seamless leadership transition and maintain strong operational momentum, a
structured handover period has been established between October and December 2026.
The Board values leadership continuity and recognises the value of Sean’s strategic oversight.
Sean will therefore remain actively involved within the Pepkor group throughout 2027. He will
serve in an executive advisory role to support the group, ensuring that his expertise and deep
institutional knowledge are retained.
Parow
14 September 2026
Equity and Debt sponsor
Investec Bank Limited
Badger Properties transaction advisor: Blue Triangle Proprietary Limited
Corporate broker
Rand Merchant Bank (a division of FirstRand Bank Limited)
Date: 14/09/2026 05:12:00
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