Pepkor (PPH) – Tougher Trading but improved Profits

We analyse PPH’s three debtors’ books and compare their impairment provisioning against other SA credit retailers. Following PPH’s impairment of its goodwill in FY20, we assess whether further impairments could take place in the year ahead. With Pep Africa going through a consolidation phase, we think the volatile performance in its Nigerian operations may warrant a relook of its strategy.