South African retailer Pick n Pay has reported a significant reduction in its annual losses for the 53 weeks ending March 2, 2025, marking a pivotal step in its multi-year turnaround strategy.

Financial Highlights

• Loss Before Tax and Capital Items: Reduced to R237 million from R1.4 billion the previous year.

• Group Turnover: Increased by 5.6% to R118.6 billion.

• Core Pick n Pay Segment: Trading loss narrowed by R1 billion to R549 million.

• Boxer Chain: Turnover grew by 13.2%, contributing significantly to overall performance.

• Net Interest Paid: Decreased by 27.3%, reflecting benefits from the recapitalization plan.

Strategic Initiatives

Under the leadership of CEO Sean Summers, who returned in October 2023, Pick n Pay has embarked on a comprehensive recovery plan. Key measures include:

• Recapitalization Plan: Raised R12.5 billion through a R4 billion rights offer and an R8.5 billion Boxer IPO.

• Operational Adjustments: Closed or converted 40 underperforming supermarkets in South Africa.

• Debt Management: Achieved a net cash position of R4.2 billion, alleviating previous debt challenges.

Outlook

Despite the progress, the core Pick n Pay segment continues to operate at a loss. The company has adjusted its break-even target to the financial year 2028, emphasizing a methodical approach to rebuilding its operations

“The path back to break-even, profitability, and ultimately long-term sustainable success is clear; and will be executed on in a considered and methodical manner,” the group stated.

For more detailed financial information, refer to Pick n Pay’s audited annual financial statements.Pick n Pay Investor+1Pick n Pay Investor