Pick N Pay Stores Ltd
(FRA:PIK)
€
1.04
+0.010 (+0.97%)
Market Cap: 798.57 Mil
Enterprise Value: 1.68 Bil
PE Ratio: 0
PB Ratio: 1.59
GF Score: 65/100 
Full Year 2024 Pick N Pay Stores Ltd Earnings Call and Strategy Presentation Transcript
May 27, 2024 / 06:30AM GMT
Release Date Price:
€1.05
(+6.14%)
Key Points
Positve
- Pick N Pay Stores Ltd (JSE:PIK) reported a turnover of ZAR112.3 billion, reflecting a 5.4% increase year-on-year.
- The Boxer division showed strong performance with a 17.3% increase in turnover and a trading profit of ZAR1.9 billion, up 9.4% from the previous year.
- The company has embarked on a ZAR4-billion rights issue to recapitalize the business, supported by the Ackerman family.
- Pick N Pay Clothing standalone stores grew by 17%, outgrowing the market by 6.3%.
- The company has a clear strategy to address underperforming stores, including closures, conversions to Boxer, and franchising.
Negative
- Pick N Pay's core supermarket business reported a trading loss of ZAR1.5 billion, a significant decline from the previous year's profit of ZAR1.3 billion.
- The gross profit margin contracted by 150 basis points to 18.1%, with a notable impact from modernization costs and inventory provisions.
- The company recorded impairments of ZAR2.8 billion related to underperforming stores, indicating significant financial strain.
- Net debt increased to ZAR6.1 billion, with a net debt-to-EBITDA ratio of 6.3, highlighting high leverage.
- Operational challenges and strategic missteps over the past decade have led to a decline in the core business, necessitating a multi-year turnaround plan.
Gareth Ackerman
Pick N Pay Stores Ltd - Non-Executive Chairman of the Board
Okay. Good morning, everybody. Welcome to the Pick n Pay annual financial results announcement for the year ending February 2024.
As always, we're doing it here, we're doing it in Johannesburg, and we've got a number of people who are online. So thank you very much to all of those who are joining us and who are not present in the room. Hope you've got good reception and that you can hear. Your questions will be able to be answered. So just follow the process at the end, and we'll make sure that they get put to the team and will be answered properly.
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