{"id":792268,"date":"2024-09-25T17:30:00","date_gmt":"2024-09-25T15:30:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=792268"},"modified":"2024-09-26T08:03:42","modified_gmt":"2024-09-26T06:03:42","slug":"how-much-you-would-have-if-you-invested-r1000-in-woolies-pick-n-pay-shoprite-and-spar-at-the-start-of-2024","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/792268\/how-much-you-would-have-if-you-invested-r1000-in-woolies-pick-n-pay-shoprite-and-spar-at-the-start-of-2024\/","title":{"rendered":"How much you would have if you invested R1,000 in Woolworths, Pick n Pay, Shoprite, and Spar at the start of 2024"},"content":{"rendered":"\n

Pick n Pay has been the best-performing major food retailer on the JSE, but there are some caveats to that figure. <\/p>\n\n\n\n

Pick n Pay’s share price has risen 30% since the start of 2024, but this follows a massive drop after it posted a significant loss in its latest full financial year.<\/p>\n\n\n\n

In the group’s financial results for the year ended 25 February 2024, the Pick n Pay segment triggered an R2.8 billion non-cash impairment on the assets of Pick n Pay company-owned stores, which resulted in an overall after-tax loss of R3.2 billion.<\/p>\n\n\n\n

The current financial year did not start much better, with the group expecting earnings per share and headline earnings per share to decrease by over 20% in the 26 weeks ended 25 August 2024.<\/p>\n\n\n\n

This outcome was in line with expectations, with CEO Sean Summers warning that the situation may have to get worse before it gets better. <\/p>\n\n\n\n

The group has successfully concluded an R4 billion rights offer, which it said would strengthen its balance sheet.<\/p>\n\n\n\n

The group is now focusing on the second step of its recapitalisation programme, with a planned IPO of Boxer, which, alongside Pick n Pay clothing, has been one of its best-performing businesses.<\/p>\n\n\n\n

That said, many analysts have warned to approach Pick n Pay cautiously as the company is closing stores and losing market share to its competitors.<\/p>\n\n\n\n

Redefine Properties recently said that it is taking back 10,000 square meters from Pick n Pay.<\/p>\n\n\n

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Pick n Pay Share Price<\/figcaption><\/figure><\/div>\n\n\n

The second best-performing share since the start of the year was Spar (up 16.83%) despite the group’s results for the six months ended 31 March 2024 coming in below expectations. <\/p>\n\n\n\n

SPAR\u2019s total turnover, including Southern Africa, Ireland, South West England and Switzerland, increased by 7.9% to R77.2 billion. That said, profits were flat, while headline earnings per share declined 7.6%. <\/p>\n\n\n\n

\u201cAll regions have been dealing with inflationary cost pressures and prolonged higher interest rates placing pressure on consumers and business alike,\u201d said Spar.<\/p>\n\n\n\n

\u201cThis, coupled with the hangover of system issues in South Africa, has impacted the results for the first six months of the year.\u201d<\/p>\n\n\n\n

The group, however, is selling its Polish business for R185 million as per its turnaround plan, but it will need to spend R2.7 billion to recapitalise the business. <\/p>\n\n\n\n

The group said that the deal removes the loss-making business from the balance sheet and allows it to focus resources on its core business in South Africa and focus on new growth opportunities. <\/p>\n\n\n\n

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SPAR could save the day for major retailer in business rescue<\/a><\/blockquote>