Pick n Pay (PIK) 1H23 Results Snapshot

Diluted HEPS 97.6cps (+60.3% y-y) and DPS 44.9cps (+25.3%y-y).
Turnover growth +11.5% y-y, with the prior year base impacted by the civil unrest in July 2021 and liquor trading restrictions. Like-for like growth of 7.2% y-y.
GPM increased from 18.2% to 19.4% but this was impacted by the unrest stock losses in the prior year. Adj prior year GPM was 20.0% and normalised GPM contracted by 60bps due to price investment.
Expenses increased by 10.6% y-y with the expense-to-sales ratio dropping from 19.3% to 19.1%. Expenses impacted by restructuring and retrenchment cost.
Operating margin increased from 2.3% to 2.4%.
Cash position of R2.7bn (1H22: R4.4bn). Gross debt stable at R3.9bn.
First-time disclosure of Boxer reveals how significant this division is to PIK growth. Boxer sales +27.2% y-y vs PnP +5.4% y-y. Boxer sales of R30bn account for 30.2% of PIK SA sales.