Pick n Pay Stores (PIK) H1 2027 earnings summary

Executive summary

• Turnaround progress continued: trading profit rose 58.1% to R490m, while the headline loss narrowed 31.9% to R299m.

• Positive like-for-like volume growth across company-owned supermarkets and a R10.0bn net cash position support the FY29 break-even target; further improvement remains necessary.

• Consumer pressure, fuel costs and regional uncertainty constrained demand and sales momentum.

Financial highlights

• H1 turnover rose 2.4% to R60.5bn, with like-for-like growth of 1.8%; gross margin increased 70bps to 18.8%.

• Trading profit increased 58.1% to R490m; loss before tax and capital items narrowed 56.2% to R139m.

• Headline loss narrowed 31.9% to R299m; period loss fell 88.2% to R38m and attributable loss narrowed to R270m from R496m.

• EPS loss improved 45.6% to 36.77 cents; HEPS loss narrowed 31.9% to 40.71 cents.

Outlook and guidance

• FY29 break-even remains the target, with further turnaround benefits expected over the next 2½ years.

• FY27 gross capital investment guidance is R2.8bn: R1.7bn for supermarkets and R1.1bn for Boxer; spending is weighted to H2 for revamps, acquisitions, repairs and maintenance.

• Supermarket like-for-like sales in the first four weeks of H2 were slightly ahead of H1; H2 year-to-date growth was also ahead of H1.

• H2 is expected to burn cash, with no operational cash inflow expected; labor-agreement savings are expected largely in FY2028, with none included in FY2027 guidance.