Boxer Retail (BOX) investor relations material

Executive summary

• H1 FY27 turnover rose 6.3% to R24.094bn; trading profit increased 8.1% to R1.006bn and profit before tax before capital items grew 10.6% to R774m.

• Headline earnings increased 9.1% to R565m and HEPS rose 9.2% to 124.83 cents; an interim dividend of 49.9320 cents per share was declared.

• Results were achieved amid constrained consumer spending and 2.4% selling price deflation; like-for-like sales grew 1.4% and implied like-for-like volume grew 3.8%.

Financial highlights

• Turnover was R24,094m versus restated R22,656m; gross profit rose 8.7% to R4,978m and trading profit rose 8.1% to R1,006m.

• Profit after tax increased 12.9% to R567m; reported profit before tax was R777m, while profit before tax before capital items rose 10.6% to R774m.

• EBITDA increased 8.4% to R1,749m; EPS rose 13.1% to 125.28 cents and HEPS rose 9.2% to 124.83 cents.

• Other trading income grew 34.7% to R260m, or 1.1% of turnover versus 0.9%; trading expenses increased 10.2% to R4,232m.

Outlook and guidance

• FY27 turnover growth is expected to improve in H2; September selling price deflation was 2.1% versus 2.4% in H1, and recent four-week growth was slightly above H1.

• FY27 target remains 60 openings: 25 superstores and 35 liquor stores; 32 net new stores were open by 30 September 2026.

• FY27 capital investment guidance remains R1.1bn; management aims to keep H2 trading margin similar to last year while managing cost and promotional pressures.

• Trading visibility remains low amid macro risks and an uncertain near-term inflation outlook; H2 free cash flow is expected to be materially lower as seasonal working capital releases unwind and CapEx rises.