Pick n Pay predicts significant recovery in headline loss per share
Retail
Pick n Pay Retail giant Pick n Pay reported an improvement in headline losses per share for the 52-week period to end February 2025, but its core store segment was still reporting trading losses..
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Pick n Pay Stores’ share price soared nearly 5% on Tuesday, after it predicted that its headline loss per share (HLPS) would improve by between 55% and 75% for the 52-week trading to February 25, which is indicative of its turnaround strategy starting to take effect.
The HLPS for the major grocery store group that struck financial difficulties during the past two years would be between -77.49 cents and -43.05 cents for the period, compared with the HLPS of -172.21 in the same period last year.
The share was trading at R27.43 late afternoon Thursday, 4.89% higher than the opening price, but sharply down from R53.85 three years ago, as the share price followed the declining financial performance of the group.
Pick n Pay management said in a trading statement that the reduced losses at the HLPS level were due to better trading profit in its Pick n Pay stores, lower second-half interest charges due to the successful implementation of a two-step recapitalisation plan, and trading profit growth in the majority-held subsidiary, Boxer Retail, which listed on the JSE recently.
There was a substantial reduction in impairments, declining to less than R500 million in the 2025 financial year from R2.4 billion in 2024.
“While the guided result signals a very meaningful 2025 earnings recovery, the group continues to incur a loss within the Pick n Pay segment on a trading profit after lease interest basis, and the group cautions that this is likely to remain the case for some time,” Pick n Pay's management said. The annual results are due to be released on Monday.
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