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Audited financial results for the 52 weeks ended 1 March 2026 (FY26)
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")
AUDITED FINANCIAL RESULTS FOR THE 52 WEEKS ENDED 1 MARCH 2026 (FY26)
52 weeks to 53 weeks to
1 March 2026 2 March 2025 %
Key Group financial indicators FY26 FY25 change
Turnover R120.3 billion R119.0 billion1 1.0
Turnover (pro forma 52w for FY25)2 R120.3 billion R116.3 billion1 3.4
Trading profit R1 685 million R1 759 million (4.2)
Trading profit margin 1.4% 1.5%
Profit/(loss) before tax and capital items R360 million (R237 million)
Headline loss (R386 million) (R408 million) 5.4
Loss per share (99.17 cents) (111.01 cents) 10.6
Headline loss per share (52.58 cents) (61.54 cents) 14.6
1 FY25 turnover restated to now include certain items previously recognised within costs of goods sold. FY25 trading profit is not impacted; FY25 trading
profit margin has been revised as a consequence of this turnover restatement.
2 Refer to Appendix 1 of the FY26 annual financial statements for the pro forma financial information.
FY26 Group Highlights
In FY26 the Group put in place critical initiatives for the Pick n Pay supermarkets turnaround plan, while Boxer continued to drive its store rollout.
Achievements during the period include:
- Pick n Pay SA Supermarkets like-for-like sales acceleration and gross profit margin accretion: Company-owned supermarkets like-for-like sales momentum
improved to 3.9% vs. 3.3% in FY25, with the gross profit margin of the Pick n Pay segment simultaneously improving by 0.4%;
- Critical progress on key Pick n Pay SA supermarkets turnaround initiatives: including signing a materially improved logistics contract, concluding the store
estate reset and improving the product range, particularly within Fresh categories. Post year end, Pick n Pay initiated an engagement with our store-based
employees and labour partners to align with our operational needs and normalise our labour practices and costs compared to industry norms;
- Exceptional performance from Boxer: Boxer's market leading 12.3% turnover growth on a 52/52w basis further solidified its position as South Africa's leading
grocery discounter;
- Group profit recovery: While the Pick n Pay segment reported a larger FY26 trading loss vs. FY25, the Group reduced its Headline loss by R22 million to R386
million.
Group Result Summary
The Group reported a R597 million positive year-on-year swing in profit before tax and capital items to a R360 million profit, against a loss of R237
million in FY25. The improvement was driven by a R681 million positive swing in net funding interest, partially offset by a R74 million reduction in
consolidated trading profit.
The profitability improvement was significantly lower at the Headline earnings level as a result of the R450 million increase in the Boxer non-controlling
interest to R535 million, which resulted from the 34.4% Boxer non-controlling interest being included for the whole of FY26 vs. 3 months in FY25. The net
result was that the Group Headline loss decreased by R22 million to R386 million.
Group turnover increased 3.4% (52/52w basis), with 12.3% growth from Boxer and a 1.6% decline from Pick n Pay, impacted by the store estate reset programme.
Gross profit margin expanded 0.5% to 18.8%, with improvement in both the Pick n Pay and Boxer gross profit margin. Other income grew 0.6%. Trading expenses
increased by 4.1%, driven by the Boxer store rollout. The R74 million (4.2%) decline in Group trading profit to R1.7 billion was the combined result of a
R330 million increase in Boxer trading profit (to R2.6 billion) and a R404 million increase in the Pick n Pay trading loss (to R1.0 billion).
Subsequent event: R4.7 billion Boxer share sale
On 18 May 2026 the Group completed a placement of 57.3 million Boxer shares via an accelerated bookbuild for gross proceeds of R4.7 billion. The shares sold
represent 12.5% of Boxer shares in issue, and reduce the Group's Boxer shareholding from 65.6% to 53.1%. The net proceeds of the sale, together with the
R2.4 billion of net cash within the Pick n Pay segment, will be used to invest in and fund the Pick n Pay segment's journey to growth and profitability. The
Group is firmly committed to retaining a majority stake in Boxer, which is a vital part of the Group.
Group strategic plan and outlook
FY26 saw an exceptional performance from Boxer. Against that, the Pick n Pay segment's increased trading loss indicates that the in-progress turnaround still
has some way to go.
The loss of R2.0 billion at the trading profit after lease interest level in the Pick n Pay segment underpins the urgency of returning Pick n Pay to a
sustainable enterprise. Notwithstanding the challenges, positive progress is being made in improving the customer experience, which is our lifeblood.
Critical elements of the Pick n Pay turnaround strategy have already been put in place, with the full benefits still to be realised. Initiatives including
closing loss-making stores, strengthening store and regional management, and improving the product offer have driven a steady improvement in like-for-like
sales coupled with a gross profit margin recovery. The new logistics contract is expected to drive further gross margin accretion in FY27 and FY28.
Astute management of trading expenses is a critical lever on the journey to achieving break-even at the trading level within the Pick n Pay segment.
Employee costs are the Pick n Pay segment's largest expense (equating to 41.4% of FY26 trading expenses) and are out of kilter with the wider retail
industry. Support office employee costs were targeted in FY26 (and continued to be addressed), with restructuring and a salary freeze. Post year end,
Pick n Pay initiated a s.189A (of the Labour Relations Act) process with our bargaining unit store-based employees and labour partners with the express
purpose of restructuring our labour model and bringing Pick n Pay's employee costs, practices and efficiencies in-line with the market. The outcome of
this process, in combination with the other turnaround initiatives, is critical to Pick n Pay's ability to reach profit break-even, to create a sustainable
business with secure futures for Pick n Pay employees.
Elevated oil and diesel prices mean that the trading outlook for FY27 is uncertain. The Group expects the war in the Persian Gulf to impact food inflation,
logistical costs, and the ability of the consumer to spend. How these factors ultimately play out is unclear, and is largely predicated on the duration of
the war.
Given the time it will take for the turnaround initiatives already in play to deliver their full benefits, and the challenges facing the South African
retail market, the Group is pushing out its profit break-even target for the Pick n Pay segment by one year. The Group is now targeting the Pick n Pay
segment to break even at the trading profit after lease interest level in FY29 (previously FY28). The delay reflects the phasing of the various elements of
the turnaround plan, rather than any reduction in the Board's confidence that the turnaround objectives will ultimately be achieved.
In the 9 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 FY26.
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
22 May 2026
About this announcement
This results announcement has been prepared in compliance with the JSE Listings Requirements and is the responsibility of the directors. It is only a
summary of the information contained in the Group's FY26 consolidated audited annual financial statements and does not contain full details.
Any investment decision should be based on the Group's FY26 consolidated audited annual financial statements published on its website at
www.picknpayinvestor.co.za and on the JSE cloudlink at: https://senspdf.jse.co.za/documents/2026/jse/isse/PIK/FY26AFS.pdf
Ernst and Young Inc, the Group's independent auditor, has audited the consolidated annual financial statements of Pick n Pay Stores Limited from which this
results announcement has been derived from and has expressed an unmodified audit opinion on the consolidated annual financial statements. This results
announcement itself is not audited and therefore the audit report does not cover this results announcement.
Forward looking information
This report 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.
Pro forma information
Certain financial information presented in this announcement and the consolidated audited annual financial statements, including the FY25 52-week sales
information presented above, constitutes pro forma financial information in terms of the JSE Limited Listings Requirements. The pro forma financial
information is the responsibility of the Board of Directors and is presented for illustrative purposes only. Because of its nature, the pro forma financial
information may not fairly present the Group's financial position, changes in equity, results of operations or cash flows. The reported amounts and
adjustments are extracted without adjustment, from the audited financial statements or underlying accounting records of Pick n Pay for the periods ended
2 March 2025 and 1 March 2026, respectively.
An assurance report (in terms of ISAE 3420: Assurance Engagements to Report on the Compilation of Pro Forma Financial Information) has been issued by the
Group's auditors in respect of the compilation of the pro forma financial information included in this announcement. The pro forma financial information
should be read in conjunction with this assurance report.
Result webcast
The Group will hold an in-person and online results presentation at 8:30am this morning. All interested stakeholders are invited to watch the webcast which
can be accessed using the following link: www.corpcam.com/pnp25052026. The slides accompanying the result 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 across
its owned and franchise operations under the Pick n Pay and Boxer banners, and managed through these two segments.
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), Lerena Olivier (CFO)
Independent non-executive directors
James Formby (Chair), Haroon Bhorat, Aboubakar Jakoet, Thabo Leeuw, Audrey Mothupi-Palmstierna, Grant Pattison, Annamarie van der Merwe, 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 of release on SENS: 25 May 2026
Date: 25-05-2026 07:05:00
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