When Pick n Pay dropped their latest results, the headline number was a R736 million net loss. That sounds like a trolley with three broken wheels, right? But believe it or not, this is being called a “win.”
Why? Because last year Pick n Pay lost R3.2 billion. So ja, still bleeding, but at least the bandages are sticking this time. Loss before tax and capital items narrowed to R237 million from R1.4 billion. That’s like going from crashing through the guardrails to gently rolling down the embankment with airbags deployed. Painful, but survivable.
Boxer – The Favourite Child Who Pays the Bills
If Pick n Pay were a family, Boxer would be the golden child. Sales at the discount chain grew 13.2%, and after being spun off, Boxer’s market cap hit R30 billion. For perspective, Pick n Pay’s own market cap is sitting at around R21 billion.
It’s that awkward family braai where the younger sibling rocks up in a German SUV while the eldest still insists their mixtape will take off “any day now.”
Core Pick n Pay Stores – Still Limping, But Less
The OG Pick n Pay stores posted a R549 million trading loss. Ugly? Yes. But far better than last year’s R1.5 billion disaster.
Even better, the group managed to squeeze out a trading profit in the second half of the year. For six months at least, they weren’t setting money on fire.
Turnover – Boxer Did All the Heavy Lifting
Group turnover climbed to R118.6 billion, up 5.6%. Boxer carried most of that, while Pick n Pay’s own-brand sales grew just 1.9%.
If this was a braai, Boxer brought the steak, wors, tongs, rolls, and even cleaned the grid. Pick n Pay? They pitched up with two half-melted ice blocks and stale boerewors.
Debt and Interest – Less Repo Man Drama
Thanks to Boxer’s IPO and a recapitalisation plan, net interest expenses dropped 27.3%. Not financial freedom yet, but at least they’re not dodging debt collectors like a dodgy cousin at a wedding.
So, Should You Be Buying PIK Shares?
Already holding PIK? You’ve survived the storm. The second-half profit is encouraging. Don’t panic sell. Watch debt, profitability, and whether store closures turn into reopenings.
Looking to buy? This is a recovery play, not a momentum story. Boxer is strong, but Pick n Pay itself needs to prove it belongs in your portfolio. For now, this is a “wait-and-watch with snacks” share.
The Stokvel Starter Pack for JSE Jedi – Pick n Pay edition
Net Loss: R736 million – less bad than R3.2 billion
Boxer Sales Growth: 13.2%
Turnover: R118.6 billion (+5.6%)
Core PnP Trading Loss: R549 million (improved from R1.5bn)
Break-Even Goal: FY2028
Net Interest Bill: Down 27.3%
This is less “back from the dead” and more “hobbling with a limp but still in the race.”
Final Thought
Pick n Pay is still in recovery mode. Boxer might be winning the race, but the core brand has a long way to go before it can claim a proper turnaround. For South African investors, it’s a case study in cautious optimism, or as we say locally, “Ja, let’s see.”
Disclaimer:
While my jokes may be wobblier than a Pick n Pay trolley with one square wheel, remember: this is not financial advice. Do your own research, chat to a licensed advisor.