Half Year 2026 Pepkor Holdings Ltd Earnings Call Transcript
Key Points
- Pepkor Holdings Ltd (STU:S1VA) reported a 12.1% growth in normalized HEPS for the six months ended March 31, 2026.
- The company expanded its retail platform by opening 89 new stores, bringing the total to 6,657 stores.
- Financial services segment showed exponential growth, driven by FoneYam with 1.3 million activations.
- Approval for a banking license was obtained, indicating future expansion into banking services.
- The informal market platform performed well, with a throughput of 20.3% or ZAR34.7 billion for the six months.
- Shoe City is treated as a discontinued operation, impacting the focus on continuing operations.
- Ackermans experienced a decline in like-for-like sales, with a negative 0.5% growth.
- The company faced challenges in the call center affecting collections, impacting bad debts by ZAR180 million to ZAR200 million.
- Net debt to EBITDA increased to 14.9%, though expected to normalize by year-end.
- Cash conversion was below the target of 80%, at 68%, due to faster-than-anticipated growth in FoneYam.
Good day, and welcome to the results for Pepkor. The interim results for the six months ended 31 March 2026. As per usual, I'll just make a few opening remarks, Riaan will take you through the financial results. And then Sean and Garth will talk about what drives the business, and then we'll close with an outlook of how trading has been since the reporting period and then allow for some questions and answers.
So we're very happy to give a result of 12.1% in normalized HEPS growth for thesix months. As we communicated to the Capital Markets Day a couple of weeks ago, the environment remains tough, unemployment, cost of living, competition still similar to what we saw a couple of weeks ago, but our customer focus -- strategy with customer focus continues to deliver the type of results that we can report.
Just some highlights for the six months. First of all, our retail platform or our store base increased to 6,657 stores, which is 89 new stores. We successfully implemented our targeted acquisitions. Our
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