{"id":838673,"date":"2025-10-02T07:00:00","date_gmt":"2025-10-02T05:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=838673"},"modified":"2025-10-01T15:36:16","modified_gmt":"2025-10-01T13:36:16","slug":"pick-n-pays-big-draw-for-investors","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/838673\/pick-n-pays-big-draw-for-investors\/","title":{"rendered":"Pick n Pay’s big draw for investors"},"content":{"rendered":"\n

Pick n Pay is undergoing a significant change, with investors drawn to its stocks as a cheap entry into Boxer and other improving businesses.\u00a0<\/p>\n\n\n\n

The Pick n Pay Group faced a tough start to the decade, characterised by billions in losses, being technically insolvent, and question marks over its leadership. <\/p>\n\n\n\n

However, the group saw the return of former CEO Sean Summers in late 2023, who quickly started work on turning the group around.\u00a0<\/p>\n\n\n\n

This included a two-step recapitalisation plan, including a R4 billion rights offer and the initial public offering of Boxer for R8 billion, which was its best performer. <\/p>\n\n\n\n

The listing of Boxer was one of the largest on the JSE for years, with the company\u2019s market cap currently sitting at R31 billion. <\/p>\n\n\n\n

This is far higher than Pick n Pay\u2019s market cap that is just shy of R19 billion. <\/p>\n\n\n\n

Considering that Pick n Pay still maintains a 65% shareholding in Boxer, its share price actually offers a discount to its R21 billion stake in Boxer.\u00a0<\/p>\n\n\n\n

The operational and structural changes from the Pick n Pay group are also getting the approval of investors, with many drawn to the company’s stock.\u00a0<\/p>\n\n\n\n

Speaking to Business Day TV<\/a>, Rowan Williams from Nitrogen Fund Managers chose Pick n Pay as his stock pick, mainly as it offers a discounted entry into Boxer.\u00a0<\/p>\n\n\n\n

Williams said that Pick n Pay has become a bit of a trading stock. A recent decline in food price inflation expectations led to a slight drop in the share price of the group.<\/p>\n\n\n\n

However, he noted that the medium-term prospects for the Boxer remain particularly good, which is the bulk of the value of Pick n Pay. <\/p>\n\n\n\n

He added that there is also a potential upside from the problem Pick n Pay operations across South Africa. <\/p>\n\n\n\n

This includes renovating or closing certain Pick n Pay stores, with many converted into Boxer stores.\u00a0This will create a smaller, more profitable business alongside giving easy access to Boxer.\u00a0<\/p>\n\n\n\n

Boxer’s strange update<\/h2>\n\n\n
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\"\"<\/a><\/figure><\/div>\n\n\n

Williams’ comments came shortly before Boxer released a trading update for the six months ended 31 August 2025. <\/p>\n\n\n\n

Boxer saw several metrics heading in the right direction, with turnover increasing by 13.9%, while like-for-like sales jumped 5.3%.  <\/p>\n\n\n\n

The group\u2019s headline earnings also increased by up to 9% to a range between 492 and 539 cents per share. <\/p>\n\n\n\n

\u201cThe improvement in headline earnings is driven by a strong trading result, which was able to partially offset the previously guided incremental costs associated with being a listed entity,\u201d said Boxer.<\/p>\n\n\n\n

However, the group still expects a decline in its earnings per share (EPS) and headline earnings per share (HEPS) due to its IPO structure. <\/p>\n\n\n\n

Due to the IPO, Boxer\u2019s weighted average number of ordinary shares in issue, net of treasury shares, increased by 51.1% from a restated 299.999 million for H1 FY25 to 453.290 million for H1 FY26.<\/p>\n\n\n\n

EPS are thus expected to drop by between 30% and 36% to a range between 105.21 and 115.18 cents per share. <\/p>\n\n\n\n

HEPS are expected to drop by between 28% and 34%, to a range between 108.57 and 118.85 cents per share. <\/p>\n\n\n\n

Further details will be given in Boxer\u2019s official interim results, which are set to be released on Monday, 13 October 2025. <\/p>\n\n\n\n

Metric<\/strong><\/td>Expected Range % Change<\/strong><\/td>26 weeks to 31 Aug 2025 (Expected Range Cents per share)<\/strong><\/td>26 weeks to 25 Aug 2024 (Restated Cents per share)<\/strong><\/td><\/tr>
Absolute earnings metrics<\/td><\/td><\/td><\/td><\/tr>
Headline earnings (Rm)<\/td>0% to +9%<\/td>492 \u2013 539<\/td>492<\/td><\/tr>
Per share earnings metrics<\/td><\/td><\/td><\/td><\/tr>
Earnings per share (EPS)<\/td>-30% to -36%<\/td>105.21 \u2013 115.18<\/td>163.67<\/td><\/tr>
Diluted EPS<\/td>-30% to -36%<\/td>104.26 \u2013 114.14<\/td>163.67<\/td><\/tr>
Headline earnings per share (HEPS)<\/td>-28% to -34%<\/td>108.57 \u2013 118.85<\/td>164.00<\/td><\/tr>
Diluted HEPS<\/td>-28% to -34%<\/td>107.59 \u2013 117.78<\/td>164.00<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n
\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Rowan Williams from Nitrogen Fund Managers believes that Pick n Pay shares offer an attractive entry point for Boxer. <\/p>\n","protected":false},"author":95,"featured_media":799190,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[6655,4067],"class_list":["post-838673","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-boxer","tag-pick-n-pay"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/838673","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=838673"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/838673\/revisions"}],"predecessor-version":[{"id":838821,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/838673\/revisions\/838821"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/799190"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=838673"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=838673"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=838673"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}