Pick n Pay on the mend but not out of the woods

Pick n Pay projects a significant increase in its earnings for the 2025 financial year, but is still running at a loss, which it expects to continue doing for some time.

In a trading statement released on Thursday, 22 May 2025, Pick n Pay informed shareholders of its earnings expectations for the  53 weeks ended 2 March 2025.

The retailer announced that its basic loss per share (LPS) and headline loss per share (HLPS) are expected to fall within the following ranges:

• Basic LPS: improve by between 70% and 90% to a loss of between 174.56 and 58.19 cents per share
• HLPS: improve by between 55% and 75% to a loss of between 77.49 and 43.05 cents per share

The retailer explained that this reduction in its losses is due to an improved trading profit in Pick n Pay.

It also cited a reduction in second-half interest charges due to the successful execution of its two-step Recapitalisation Plan, which involved a Rights Offer and Boxer’s unbundling and listing.

In addition, the retailer said it experienced sustained trading profit growth in its majority-held subsidiary, Boxer. 

Pick n Pay added that the improvement was also aided by a substantial reduction in impairments, declining from R2.4 billion in its 2024 financial year to around R500 million in 2025.

“While the guided result signals a very meaningful FY25 earnings recovery, the group continues to incur a loss within the Pick n Pay segment on a trading profit after lease interest basis,” it said. The retailer warned that this will likely remain the case for some time.

Pick n Pay plans to release its full 2025 results on Monday, 26 May 2025.