Pepkor has seen record profit growth in its financial results for the 2025 financial year, with the group also breaching the 6,000-store mark across its global operations. <\/p>\n\n\n\n
The group said that the profit growth was underpinned by strong operational performance as well as the successful execution of a number of strategic initiatives. <\/p>\n\n\n\n
\u201cThese initiatives have entrenched the group\u2019s unique business model, leveraging its physical retail footprint to fuel a digital ecosystem anchored in solving customer needs,\u201d it said. <\/p>\n\n\n\n
\u201cThe group\u2019s results evidence delivery against our objectives of consistent, quality earnings growth, while unlocking scalable future growth opportunities from embedded fintech, telecommunications and informal market adjacencies.\u201d <\/p>\n\n\n\n
The group’s revenue increased by 12.0% to R95.3 billion, with the core Clothing and General Merchandise (CGM) segment increasing its revenue by 8.9% to R66.9 billion. <\/p>\n\n\n\n
Notably, profit for the year grew by 170% from R2.1 billion to R5.6 billion, with the group benefitting from lower capital items and a higher gross profit. <\/p>\n\n\n\n
The group\u2019s total basic earnings per share rose 153.0, marking an increase of 171.3%<\/p>\n\n\n\n
The group\u2019s headline earnings per share increased by only 14.8% to 161 cents, as the group did not account for non-recurring and extraordinary items in the prior year. <\/p>\n\n\n\n
On a normalised basis, HEPS increased by 23.4% when excluding the benefit of a lower effective tax rate applicable in the prior year.\u00a0The group\u2019s dividend rose by 9.2% to 53.0 cents per share.\u00a0\u00a0<\/p>\n\n\n\n \u201cThese initiatives have entrenched the group\u2019s unique business model, leveraging its physical retail footprint to fuel a digital ecosystem anchored in solving customer needs,\u201d it said. <\/p>\n\n\n\n \u201cThe group\u2019s results evidence delivery against our objectives of consistent, quality earnings growth, while unlocking scalable future growth opportunities from embedded fintech, telecommunications and informal market adjacencies.\u201d <\/p>\n\n\n\n Pepkor\u2019s core retail business outperformed the market, with it seeing strong trading and market share gains.<\/p>\n\n\n\n The group also expanded its reach across both physical and digital channels, surpassing 6,000 retail stores and adding more than 10 million customers across its digital offerings. <\/p>\n\n\n\n The group\u2019s acquisition of Choice Clothing was implemented on 1 June 2025 and marked the group\u2019s entry into the semi-formal off-price retail segment. <\/p>\n\n\n\n Pep said that Choice operates 105 stores with the potential to expand to over 300 stores. <\/p>\n\n\n\n Although Choice will remain a standalone entrepreneurial business, Pep said it will benefit from the group’s capability and infrastructure in sourcing, supply chain and financial services.<\/p>\n\n\n\n The group also launched the Ayana brand in Speciality to target the fashion-focused women\u2019s mid-market segment. <\/p>\n\n\n\n Ayana is currently using 32 existing standalone Ackermans Women\u2019s store sites in addition to launching an online offering.<\/p>\n\n\n\n The group\u2019s Flash business saw strong momentum within the informal and fintech market, leveraging its extensive trader network and fintech ecosystem to accelerate growth and profitability further. <\/p>\n\n\n\n Pep noted that the consumer and operating environment showed notable improvement compared to the prior year. <\/p>\n\n\n\n The positive trend was supported by lower inflation, interest rates, and unemployment rates; modest GDP growth; enhanced port facilities; the two-pot system; and improved electricity availability. <\/p>\n\n\n\n \u201cHowever, some structural challenges remain, including ageing public infrastructure and rising spending on gaming, which continues to add pressure on household budgets,\u201d said Pep.<\/p>\n\n\n\n \u201cDespite these headwinds, Pepkor\u2019s resilient business model once again proved its defensiveness and adaptability, underpinning the group\u2019s ability to deliver sustainable long-term value creation.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" Pepkor has seen its profit for the year nearly triple for the 2025 financial year, with the group reaching 6,000 stores. <\/p>\n","protected":false},"author":95,"featured_media":818014,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[959],"class_list":["post-844450","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-pep"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/844450","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=844450"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/844450\/revisions"}],"predecessor-version":[{"id":846424,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/844450\/revisions\/846424"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/818014"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=844450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=844450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=844450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Metric<\/strong><\/td> 2024<\/strong><\/td> 2025<\/strong><\/td> Change<\/strong><\/td><\/tr> Revenue (Rm)E<\/td> 85 136<\/td> 95 340<\/td> 12.0%<\/td><\/tr> Profit for the year (Rm)<\/td> 2 083<\/td> 5 636<\/td> 170.6%<\/td><\/tr> Basic earnings per share (cents)<\/td> 56.4<\/td> 153.0<\/td> 171.3%<\/td><\/tr> Headline earnings per share (cents)<\/td> 148.5<\/td> 161.0<\/td> 16.0%<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n New stores <\/h2>\n\n\n\n