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<\/a><\/figure>\n\n\n\nBoxer finances<\/strong><\/p>\n\n\n\n Pick n Pay pre-listing statement for Boxer revealed detailed financial information on Boxer in isolation. This was not previously available.<\/p>\n\n\n\n It showed what many people knew. Boxer had strong financials and was behind most of Pick n Pay\u2019s positive performance.<\/p>\n\n\n\n Boxer\u2019s revenue grew by 19% in 2023 and 17% in 2024 to R37.8 billion. It was the engine of the Pick n Pay group.<\/p>\n\n\n\n Boxer also has strong profitability. It reported a net profit margin of 3.7% in its latest financial year, higher than Shoprite\u2019s comparable net profit margin of 2.6%.<\/p>\n\n\n\n Over the past 3 reporting periods, Boxer\u2019s net profit margin strengthened, indicating that the company is growing its revenue at a faster pace than its expenses.<\/p>\n\n\n\n Pick n Pay versus Boxer<\/strong><\/p>\n\n\n\n Boxer will issue 190,476,191 shares with a possible additional 11,904,762 shares if the IPO is oversubscribed.<\/p>\n\n\n\n The price range of the Boxer shares are estimated to fall between R42 to R54 per share. This translates into a market capitalization of between R23 billion and R29 billion.<\/p>\n\n\n\n This would put Boxer\u2019s IPO price at a P\/E ratio of between 16- and 21-times earnings.<\/p>\n\n\n\n What\u2019s interesting about this, is that Pick n Pay, which currently owns 100% of Boxer, has a market cap of only R19 billion.<\/p>\n\n\n\n Pick n Pay stores in isolation therefore has a negative market cap, meaning it reduces the value of the overall Pick n Pay group. <\/p>\n\n\n\n When isolating Boxer\u2019s equity and revenue figures from that of Pick n Pay it becomes clear that Pick n Pay stores are valued negatively.<\/p>\n\n\n\n Boxer\u2019s lowest expected market cap puts its price-to-sales ratio at 0.6 times revenue and its price-to-book at 12.3 times equity.<\/p>\n\n\n\n This means that the Pick n Pay group\u2019s market value increases by R0.60 for every unit of revenue and by R12.31 for every unit of equity.<\/p>\n\n\n\n When isolating Pick n Pay\u2019s revenue and equity at the group\u2019s current market cap, it has a price-to-sales ratio of -0.01 times revenue and a price-to-book ratio of -3.6 times equity.<\/p>\n\n\n\n Every unit of Pick n Pay store revenue decreases the group\u2019s value by R0.01, and every unit of Pick n Pay store equity reduces the group\u2019s value by R3.60.<\/p>\n\n\n\n This means that Boxer\u2019s value is lower within the Pick n Pay group structure as the presence of Pick n Pay stores’ finances subtracts from the group\u2019s value.<\/p>\n\n\n\n If Boxer were to achieve its lowest estimate of a R23 billion market cap, it would imply that Pick n Pay stores contributed negatively to the group’s value by R3.5 billion.<\/p>\n\n\n\n<\/a><\/figure>\n\n\n\n<\/a><\/figure>\n\n\n\n<\/a><\/figure>\n\n\n\n
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