Retailer Pick n Pay has published its financial results for the six months ended 29 August 2021, with the group reporting solid results after a period impacted by the Covid-19 pandemic and social unrest.<\/p>\n
Group comparable earnings per share increased 90.9% year-on-year, while sales growth increased by 4.1% over the same period to R46 billion.<\/p>\n
As a result of the trading disruptions over the period, most notably the civil unrest in July, gross profit decreased 3.4% to R8.4 billion, with the gross profit margin lower at 18.2% of turnover.<\/p>\n
However, comparable profit before tax rose 86.3% year on year against a highly disrupted base. Comparable headline earnings per share increased by 90.9%, demonstrating that the positive momentum reported in the second half of the FY21 financial year has been maintained, it said.<\/p>\n
Pick n Pay said that the civil unrest experienced in July resulted in an estimated R930 million in lost sales, with 212 stores damaged by looting and destruction. The group’s two largest distribution centres in KwaZulu-Natal were looted of all stock and suffered considerable damage to infrastructure.<\/p>\n
It said that the government’s liquor restrictions during lockdown also resulted in an estimated R800 million in lost sales and had a significant impact on group earnings over the period.<\/p>\n
Other key figures from the results include:<\/p>\n
Select stores<\/strong><\/p>\n As part of Pick n Pay’s ongoing expansion plans, the group is opening new Select stores specifically aimed at a more affluent target market.<\/p>\n