Pick n Pay narrows losses, signalling slow recovery

JSE-listed retailer Pick n Pay saw its shares climb 5 percent in Thursday afternoon trade after issuing a voluntary trading update for the 53 weeks ended March 2, 2025.

The update revealed that headline earnings per share (Heps) are expected to improve, ranging between -77,49 and -43,05 cents, a 55 percent to 75 percent recovery from last year’s -172,21 cents.

In a trading statement released ahead of its full-year results, the group credited improved trading performance, lower interest costs following its recapitalisation plan, and sustained growth in Boxer.

Basic earnings per share (EPS) is expected to be between -174,56 and -58,19 cents, an improvement of 70-90 percent from last year’s -581,85 cents.

“At the Basic EPS level, the improvement was also aided by a substantial reduction in impairments, declining from R2,4 billion in FY24 (net of tax impact) to less than R0,5 billion in FY25,” says the retailer.

The retailer cautioned that its core PnP segment continues to operate at a loss, suggesting that a full recovery is still some way off.

PnP results for the 53 weeks ended 2 March 2025 are expected to be released on Sens on Monday (May 26).

Moneyweb reported last year that the PnP division posted 0,3 percent growth for the 52 weeks ending 25 February 2024.

The unit also reported a trading loss of R1,5 billion, reflecting a negative trading margin of 2,1 percent.

The retailer announced on Thursday morning that chief executive officer Sean Summers will stay in the role until May 2028. He returned to PnP in September 2023 at the age of 70 to steer the company through a challenging period.

Following the departure of underperforming CEO Pieter Boone, Summers launched a three-year turnaround strategy aimed at revitalising the struggling retailer. — Moneyweb

“This extension ensures continuity and stability in the leadership team during significant strategic transformation. It also allows for a considered and deliberate succession process, including a comprehensive handover period in due course,” says the board.

The retailer also announced that former RMB CEO James Formby, currently serving as lead independent director at Pick n Pay, will succeed Gareth Ackerman as chair of the board.

This appointment is effective from the conclusion of the annual general meeting on 5 August 2025.

Formby currently also serves as chair of Boxer’s board but will step down from that role at the end of the financial year in February 2026. He will remain on the board as a non-executive director.