Pepkor (PPH) 1H23 – Results Snapshot

Diluted HEPS 79.6cps (-11.7% y-y).
Revenue growth of +4.3% y-y to R43.8bn, driven by strong performance in Clothing and General Merchandise segment (+8.0% y-y).
GPM stable at 35.3%.
Expense growth +6.9% y-y with expense to sales ratio up from 24.3% to 24.9%.
OPM decreased by 170bps from 13.4% to 11.7%.
Gross debt increased to R12.4bn (1H22: R11.6bn) with net cash decreasing to R884m (1H22: R2.7bn).
No dividend (1H22: no dividend).
Group opened net 99 stores expanding retail footprint to 5 929 stores.
PEP increased market share in baby, ladies and home product categories, while Ackermans gained market share in schoolwear and lingerie. JD Group saw market share gains in computing, appliances and audio.
Diesel costs increased by 142% y-y to R72m in 1H23 as a result of loadshedding.