Pepkor Holdings Limited (PPH) CMD 2026 summary

Strategic direction and growth levers

• Focus on entrenching dominance in core retail categories, expanding into new segments, and executing value creation plans through M&A and international expansion.

• Leverage financial services and connectivity, including retail credit, insurance, and cellular, with a push to deliver a banking opportunity.

• Omnichannel strategy to grow and optimize physical, digital, and informal market presence, extending reach and customer engagement.

• Drive leverage and efficiency through central sourcing, logistics, data, and AI, optimizing capacity and cost structures.

Financial guidance and performance outlook

• Targets double-digit group revenue and headline earnings growth of 10–15% over the next three years.

• Gross profit margin expected at 39–41% and operating profit margin at 11–13% for the next three years.

• Capex to remain at 2.5% of revenue, with gearing levels between 0.5x and 1x, and RONA above 25%.

• Cash conversion to exceed 80%, and dividend cover to be maintained at 3x earnings.

Business developments and operational highlights

• Expanded store footprint by 659 net stores, with 6% space growth and 8.6% trading density CAGR over two years.

• Online sales grew 27%, now 2.4% of total sales, with a target of 5% in five years.

• Informal market platform expanded, with Flash growing from 25% to 44% of throughput and new products launched.

• Direct sourcing increased by 32% in units, now controlling 35% of handset and 34% of accessories volume.