Pick n Pay (PIK) 1H24 – Results Snapshot

Poor results with diluted headline loss per share of 138cps
(-241% y-y). No dividend declared.
Turnover growth +5.4% y-y. Like-for-like growth of 2.3% y-y. Boxer
growth strong at 16.1% y-y but PnP sales only +0.3% y-y.
GPM decreased from 19.4% to 18.5% impacted by franchise model
change, DC duplication costs and higher promotional activity.
Expenses increased by 13.7% y-y with the expense-to-sales ratio
increasing from 19.1% to 20.6%. Abnormal costs of R565m including
diesel costs (R190m), duplicate supply chain cost (R116m) and VSP
costs R259m).
Operating margin decreased from 2.4% to 0.1%.
Cash position of R2.4bn (1H23: R2.5bn). Gross debt rise
significantly from R3.9bn in 1H23 to R6.2bn in 1H24.
Return of former CEO Sean Summers.
Management expects continued headwinds in 2H but anticipates the
H2 FY24 earnings outlook stronger than H1 FY24, but H2 FY24
earnings are likely to be below H2 FY23.