Half Year 2025 Pick N Pay Stores Ltd Earnings Call Transcript
Key Points
- Pick N Pay Stores Ltd (STU:PIK) reported a group turnover increase of 3.7% to ZAR56.1 billion.
- Boxer, a subsidiary of Pick N Pay Stores Ltd (STU:PIK), demonstrated strong sales growth, with a 12% increase and continuous market share growth.
- The company successfully executed a rights offer that was 104% oversubscribed, improving net gearing from ZAR6.1 billion to ZAR2.3 billion.
- Pick N Pay Stores Ltd (STU:PIK) plans to launch an IPO for Boxer, expected to raise between ZAR6 billion and ZAR8 billion, which will strengthen the balance sheet.
- The company has shown strong cost control, with trading expenses increasing only 1.8% on a like-for-like basis.
- Pick N Pay Stores Ltd (STU:PIK) reported a gross profit margin contraction of 60 basis points to 17.9%, reflecting a highly competitive trading environment.
- The company recorded a trading profit of only ZAR82.5 million, despite being up from ZAR32 million last year.
- EBITDA decreased by 38% to ZAR187.7 million, impacted by depreciation savings from loss-making store impairments.
- Pick N Pay South Africa's sales contracted by 0.3%, affected by store closures and franchise terminations.
- The company reported a comparable PBT loss of ZAR1.1 billion, up from a ZAR0.8 billion loss last year, due to incremental financing costs.
Okay. Well, good morning and welcome to everybody in the auditorium here today. All of our colleagues up in Johannesburg and everybody who are joining us online for this our half year results announcement.
On a personal note, I can just share with you. It's been quite an interesting year.
It's almost incredible to think that it is about 12 months since I stepped back into our beloved pick N pay. And all I can tell you that this has been the fastest, longest year I've ever lived. It's kind of, it's disappeared completely in a flash.
And I must say that I have just been so incredibly strengthened by the support that not only I have received, but that we have received as a company from the market, from our bankers, from our financiers, from our advisers, from our helpers, and specifically from the people inside pick N pay.
I think that really, you know, I've always believed this in life that it is in the toughest of times that your metal is actually tested and your character is developed.
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