Boxer returns 48% in value: A look at the retailer's strong performance

Shares in Boxer are rewarding early investors, jumping from an IPO allocation price of R54 to R79.34 as of this morning, a 47% gain, IOL’s calculations show.

With the company’s first dividend of 45 cents a share, total return is just under 48%.

Boxer was spun out of Pick n Pay and listed on the JSE on November 28, 2024, as Boxer Retail Limited.

This was a major milestone for the 47-year-old soft discount retailer and the first time a company of this type in South Africa has been listed.

In the first half of the financial year for the 26 weeks to August, Boxer opened 25 new stores, bringing its footprint to 547 stores across South Africa and Eswatini.

The expansion created over 2,300 new jobs and supported 2,100 internal promotions.

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Volume-led growth continued to drive performance, with sales, turnover, and trading profit all increasing.

However, it warned that full-year outcomes will be shaped by its performance over the key Black Friday and festive trading periods.

“Our market share has grown consistently and significantly over the period,” said CEO Marek Masojada.

Masojada said the results reflected both operational and financial progress.

“Today, the Boxer team is proud to share a positive set of results showing that post listing, the company has performed well and is delivering in line with previous guidance forecasts,” he said.

Trading profit grew 15%, despite the additional costs associated with being a listed company, it said.

Boxer also expanded its customer loyalty programme, the Boxer Rewards Club, which now has 2.3 million members, driving larger basket sizes and repeat visits.

Looking ahead, Boxer said the company remains on track to open 60 new stores in the full year and to continue expanding the loyalty programme.

Masojada said that he was “pleased to share that in September we celebrated the milestone of our 550th store when we opened at Bridge City in KwaMashu”.

KwaMashu is in KwaZulu-Natal, where Boxer has been developing and commissioning its seventh distribution centre.

IOL Business