The Pick n Pay Group has seen its total comprehensive loss improve to R185 million in the 2026 financial year, but warned that the Pick n Pay segment will likely take longer to break even. <\/p>\n\n\n\n
In its financial results for the year ended 1 March 2026, the group reported a R597 million positive year-on-year swing in profit before tax and capital items to a R360 million profit. <\/p>\n\n\n\n
The group said that the improvement was driven by a R681 million positive swing in net funding interest, which was partially offset by a R74 million reduction in consolidated trading profit.<\/p>\n\n\n\n
However, when including the tax and capital items, the group actually recorded a loss of R193 million for the period. This was an improvement from the R651 million loss in FY25.<\/p>\n\n\n\n
The group’s total comprehensive loss, which includes retirement scheme assets, foreign currency translations and other matters, improved to R185 million from R658 million in FY25.<\/p>\n\n\n\n
The group noted that its profitability was far lower at the headline earnings levels as well, due to a R450 million increase in the Boxer non-controlling interest to R535 million.<\/p>\n\n\n\n
This resulted in a 34.4% Boxer non-controlling interest being included for the full FY26, compared to three months in FY25.<\/p>\n\n\n\n
Group headline earnings thus decreased by R22 million to R386 million. The headline loss per share also dropped by 14.6% to a loss of 52.58 cents per share.<\/p>\n\n\n\n
Group turnover rose by 3.4%, with 12.3% growth from Boxer, but a 1.6% decline from Pick n Pay. The latter’s turnover decline resulted from its store estate reset programme.<\/p>\n\n\n\n
The group’s gross profit margin rose by 0.5% to 18.8%, with improvements at both Pick n Pay and Boxer. Trading expenses rose by 4.1%, driven by the rollout of Boxer stores. <\/p>\n\n\n\n
It added that the R74 million, 4.2%, decline in group trading profit to R1.7 billion was the combined result of Boxer trading profit increase and an increase in the Pick n Pay trading loss. <\/p>\n\n\n\n
Boxer saw a R330 million increase in Boxer trading profit to R2.6 billion and a R404 million increase in the Pick n Pay trading loss to R1.0 billion. <\/p>\n\n\n\n
Here is your data formatted into a clean, copyable Markdown table. You can easily copy and paste this directly into Excel, Word, or any text editor.<\/p>\n\n\n\n Earlier this month, the group completed a placement of 57.3 million Boxer shares via an accelerated bookbuild for gross proceeds of R4.7 billion. <\/p>\n\n\n\n These shares sold represent 12.5% of Boxer shares in issue, and reduce Pick n Pay Group’s shareholding from 65.6% to 53.1%. <\/p>\n\n\n\n “The net proceeds of the sale, together with the R2.4 billion of net cash within the Pick n Pay segment, will be used to invest in and fund the Pick n Pay segment’s journey to growth and profitability,” it said. <\/p>\n\n\n\n “The group is firmly committed to retaining a majority stake in Boxer, which is a vital part of the group.” <\/p>\n\n\n\n It added that the financial year saw an exceptional performance from Boxer, but the Pick n Pay segment’s increased trading loss indicates that the in-progress turnaround has a way to go. <\/p>\n\n\n\n The group said that the loss of R2.0 billion at the trading profit after lease interest level in the Pick n Pay segment underpinned the urgency of returning the company to a sustainable enterprise. <\/p>\n\n\n\n However, the group said that, notwithstanding the challenges, positive progress is being made in improving the customer experience. <\/p>\n\n\n\n Other critical elements of the Pick n Pay turnaround strategy have already been put in place, with the full benefits still to be realised, it said. <\/p>\n\n\n\n It added that the initiatives, such as closing loss-making stores, strengthening store and regional management, and improving the product offerings, have already boosted like-for-like sales. <\/p>\n\n\n\n The group added that an astute management of trading expenses is critical to achieving break-even at the trading level within the Pick n Pay segment.<\/p>\n\n\n\n The group said that its employee costs are Pick n Pay segment’s largest expense, equating to 41.4% of FY26 trading expenses, and not in line with the wider retail industry. <\/p>\n\n\n\n Its support office employee costs were targeted in FY26 through restructuring and a salary freeze. Post-year-end, the group initiated a section 189A process with its store-based employees and labour partners. <\/p>\n\n\n\n The group said that the restructuring is in line with its labour model and bringing Pick n Pay’s employee costs, practices and efficiencies in line with the market. <\/p>\n\n\n\n “The outcome of this process, in combination with the other turnaround initiatives, is critical to Pick n Pay’s ability to reach profit break-even, to create a sustainable business with secure futures for Pick n Pay employees,” the group said. <\/p>\n\n\n\nKey Group financial indicators<\/strong><\/td> 52 weeks to 1 March 2026(FY26)<\/strong><\/td> 53 weeks to 2 March 2025(FY25)<\/strong><\/td> % change<\/strong><\/td><\/tr><\/thead> Turnover<\/strong><\/td> R120.3 billion<\/td> R119.0 billion<\/td> 1.0<\/td><\/tr> Turnover<\/strong> *(pro forma 52w for FY25)<\/td> R120.3 billion<\/td> R116.3 billion<\/td> 3.4<\/td><\/tr> Trading profit<\/strong><\/td> R1 685 million<\/td> R1 759 million<\/td> (4.2)<\/td><\/tr> Trading profit margin<\/strong><\/td> 1.4%<\/td> 1.5%<\/td> \u2014<\/td><\/tr> Profit\/(loss) before tax and capital items<\/strong><\/td> R360 million<\/td> (R237 million)<\/td> \u2014<\/td><\/tr> Loss for the period<\/strong><\/td> (R193 million)<\/td> (R651 million)<\/td> –<\/td><\/tr> Total comprehensive loss for the period <\/strong><\/td> (R185 million)<\/td> (R658 million)<\/td> –<\/td><\/tr> Headline loss<\/strong><\/td> (R386 million)<\/td> (R408 million)<\/td> 5.4<\/td><\/tr> Loss per share<\/strong><\/td> (99.17 cents)<\/td> (111.01 cents)<\/td> 10.6<\/td><\/tr> Headline loss per share<\/strong><\/td> (52.58 cents)<\/td> (61.54 cents)<\/td> 14.6<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n Sell a stake in Boxer <\/h2>\n\n\n\n