JSE-listed retailer Pick n Pay reported a 14.5% increase in headline earnings per share (Heps) for the 52 weeks ending February 2022, an increase supported by the sales performance of its apparel and liquor business.
Group turnover for the period was R97.9 billion, up 5.2% from the previous period, from R93.1 billion previously reported. The group’s turnover has improved despite an estimated R2.7 billion sales loss due to the effects of the July civil unrest and the Covid-19-related alcohol ban.
The retailer announced a full-year dividend of 221.15 cents per share, up 23% from the previous period.
Read: How Checkers Six dominates the 60 on-demand grocery market
Despite fluctuations in sales performance during this period, the retailer’s sales increased 7.4% in the fourth quarter of 2022, indicating a recovery from the July riots. In the first eight weeks of 2023, full-year sales grew by 9.9%, accelerating growth.
The contribution of the group’s sales performance during the year was Peak N Pay Clothing, which reported a 21% increase in sales for the period, reflecting market share gains. The apparel segment also saw a 233% increase in online sales during the year.
The group’s liquor business is also seeing a recovery, with retailers reporting a 57.2 percent increase in liquor sales during the period, although 66 liquor business days were lost and about R0.9 billion sold.
The group’s discount format maintains a strong growth drive for the boxer group. As such, Pick n Pay announced its intention to expand the brand footprint, announcing plans to open 200 new boxer stores in the next three years.
CEO Peter Boone said in a statement: “I am pleased with our performance in a very turbulent year and the extraordinary recovery we have made after the civil unrest.”
“Our sales in the fourth quarter of last fiscal year and in the first quarter of this financial year show our potential. Boxer has one of the fastest growing discounts in Africa. We have also seen strong growth in clothing and online. ”
With inflation rising, the retailer says it has managed to keep its customers from feeling the price pinch by holding its selling price inflation for the year, despite rising food inflation.
The retailer said, “Cost discipline and operational efficiency have enabled the group to offer lower prices and deeper promotions, compared to 6.2% CPI food, which is limited to 2.9% of selling price.”
“Investments at lower prices for consumers, and civic instability as a result of 18.8% of total profits reflect the material stock write-off.”
Read: Peak N Pay Apps Fresh Product Offer with First In-Store Vertical Firm