Pick n Pay expects improvement in its financial metrics, but the group warns that its core Pick n Pay grocery business will likely continue posting losses in the future.<\/p>\n\n\n\n
In its 2024 financial year, the group declared a R3.2 billion loss following a significant impairment of its core Pick n Pay grocery stores.<\/p>\n\n\n\n
With the group technically insolvent and in breach of its debt covenants, the group moved to raise R4 billion via a rights offer and R8 billion from Boxer’s IPO in a two-step recapitalisation plan.<\/p>\n\n\n\n
Although returning CEO Sean Summers warned that things would get worse before they get better, the group has shown signs of promise.<\/p>\n\n\n\n
In a trading statement for 53 weeks ended 2 March 2025, Pick n Pay said that basic earnings per share are expected to increase by 70% to 90% from the previous year’s loss of 581.85 cents.<\/p>\n\n\n\n
Headline earnings should increase by between 55% and 75% from the headline loss of 172.21 cents last year.<\/p>\n\n\n\n
As indicated by the group’s interim results in October, Pick n Pay said that the losses at the HEPS level are due to improved trading profit at Pick n Pay.<\/p>\n\n\n\n
It was also due to the reduction in second-half interest charges, which resulted from the successful execution of the group’s two-step recapitalisation plan and Boxer’s sustained trading profit.<\/p>\n\n\n\n
On the Basic EPS level, the improvement was aided by a large decrease in impairments, which declined from R2.4 billion, net of tax impact, to less than R500 million in FY25.<\/p>\n\n\n\n
Despite the earnings recovery, the group continues to incur a loss within the Pick n Pay segment on a trading profit after lease interest basis.<\/p>\n\n\n\n
The group cautioned that the loss in the Pick n Pay segment will likely remain the case for some time.<\/strong><\/p>\n\n\n\n Pick n Pay’s official financial results for the period will be released on Monday, 26 May.<\/p>\n\n\n\n The trading statement comes after the group announced several updates at the board and management level at Pick n Pay.<\/p>\n\n\n\n The first was the announcement that former RMB CEO James Formby will take over as chairman from the outgoing Gareth Ackerman, who is retiring.<\/p>\n\n\n\n Founded by his father Raymond, Ackerman took over as Chairman in 2010 following his father’s retirement.<\/p>\n\n\n\n As per the R4 billion rights offer, the Ackerman family reduced their share of voting rights from 52% to 49%. Although this is still a large proportion, it ended the family’s outright control of the group.<\/p>\n\n\n\n Suzanne Ackerman, Raymond’s daughter, has also been chosen as the Chair of the Social, Ethics and Transformation Committee (SETC).<\/p>\n\n\n\n Her move is part of the group\u2019s efforts to strengthen the independence of Board committees. Haroon Bhorat, an independent non-executive director, will replace her.<\/p>\n\n\n\n The group also announced that CEO Sean Summers extended his contract and will stay in his current role until May 2028.<\/p>\n\n\n\n \u201cThis extension ensures continuity and stability in the leadership team during significant strategic transformation,\u201d said Pick n Pay. <\/p>\n\n\n\n \u201cIt also allows for a considered and deliberate succession process, including a comprehensive handover period in due course.\u201d <\/p>\n\n\n\n Summers replaced Raymond Ackerman as CEO in 1999. He had worked with the group since 1974. He left in 2007 but returned in 2023 to steady the ship. <\/p>\n","protected":false},"excerpt":{"rendered":" Pick n Pay has warned shareholders that its core grocery stores will likely remain under pressure for some time. <\/p>\n","protected":false},"author":95,"featured_media":818479,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[4067],"class_list":["post-825312","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-pick-n-pay"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/825312","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=825312"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/825312\/revisions"}],"predecessor-version":[{"id":825329,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/825312\/revisions\/825329"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/818479"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=825312"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=825312"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=825312"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Financial<\/strong><\/td> FY24<\/strong><\/td> FY25<\/strong><\/td> % Change<\/strong><\/td><\/tr> Basic EPS<\/td> (581.85) cents<\/td> (174.56) to (58.19) cents<\/td> +70% – 90%<\/td><\/tr> Diluted Basic EPS<\/td> (580.37) cents<\/td> (174.11) to (58.04) cents<\/td> +70% – 90%<\/td><\/tr> HEPS (Headline EPS)<\/td> (172.21) cents<\/td> (77.49) to (43.05) cents<\/td> +55% – 75%<\/td><\/tr> Diluted HEPS<\/td> (171.77) cents<\/td> (77.30) to (42.94) cents<\/td> +55% – 75%<\/td><\/tr><\/tbody><\/table><\/div> Major management changes<\/strong><\/h2>\n\n\n\n