Pick n Pay today, 26 April 2019, published its annual financial results for the year ending 03 March 2019.
Headline earnings per share grew 18.0%, with diluted HEPS up 18.8%. Profit before tax (PBT) was up 17.3%, with the PBT margin improving from 2.2% to 2.4%.
The company’s volume growth of 5.1% represented its strongest underlying trading performance for many years.
The Group’s performance was anchored by a strong result from its core South Africa division, with profit before tax in the region up 23.8%. Operations in the Rest of Africa remained resilient despite difficult trading conditions. The Group’s result takes full account of the operating challenges experienced outside South Africa, including the earnings impact of a constrained consumer environment in Zambia and currency devaluation in Zimbabwe. Profit before tax from the Group’s Rest of Africa division was down 16.2% year-on-year. The company has commenced development on one store in Nigeria, due to open this year, with plans for two more.
“I want to thank everyone at Pick n Pay and Boxer for their hard work in delivering an outstanding result in a difficult economy,” says Richard Brasher, Pick n Pay CEO.
“In tough times, success depends on having the right plan, and delivering on that plan, whatever the circumstances. This result is built on a clear, long-term strategy to create a leaner and more cost-effective business which gives customers exceptional value, quality, innovation and service. We have raised our game in a difficult economy when customers have needed us most.”
“Six years of hard work has made us a much better business for customers – with great prices, an exciting fresh offer, innovation in own brand products, and an exciting array of services, in brighter and more modern stores.”
“Our Boxer business has had a great year. It has performed exceptionally well in this tough economy and has firmly established itself as South Africa’s leading limited-range discount supermarket.
“Income from value-added services grew 41.5%. Our new banking partnership with TymeBank has given customers another reason to shop with Pick n Pay and Boxer. TymeBank have opened over 250 000 accounts in our stores in just 3 months.”
“Over the past six years we have changed the trajectory of Pick n Pay. This has been a very good year, and there is more to come in 2019 and beyond.”