Major South African retailer hits 525 stores across South Africa

Pick n Pay’s discount retailer, Boxer, has 525 stores across South Africa and plans to add even more as its discount model proves a great success.

In its inaugural financial results as a separate listed entity, the group reported flat earnings for 53 weeks ended 2 March 2025, despite significant growth in turnover and trading profit.

It saw a 13.2% jump in turnover for the period to R42.34 billion (FY24: R37.4 billion), with trading profit up 9.9% to R2.3 billion.

Despite this strong growth, Boxer’s headline earnings for FY25 remained flat at -0.1% (R1.4 billion for the year).

This reflected higher net finance costs associated with the new external debt introduced as part of the pre-IPO balance sheet restructuring.

It also accounted for an increase in the group’s effective tax rate, which offset the positive impact of the operational performance, it said.

As a result, the group saw a decline in headline earnings per share of 11.8%, to 413.8 cents, down from 469.3 cents in FY24.

All impairment losses and other capital items are excluded from the calculation of Headline earnings per
share.

However, the year-on-year comparisons are not exact, due to the 2025 financial year reflecting a 53-week period.

Boxer reports on the retail calendar of trading weeks, by which each financial year is an exact 52-week period of trading weeks from Monday to Sunday. The result is the loss of a day per calendar year.

These lost days are taken into account by reporting a 53-week financial year approximately every six years. In line with this methodology, FY25 is a 53-week year.

In order to facilitate comparison with FY24 on a 52/52-week basis, Boxer has provided pro forma sales and trading profit, which strips out the impact of the additional week.

Using these pro-forma figures, the group’s turnover growth is slightly lower—up 10.4% to R41.3 billion—and trading profit is also slightly lower—up 7% to R2.3 billion—when comparing 52 weeks year-on-year.

Excluding the impact of the derecognition of the Pick n Pay guarantee, 52/52w trading profit growth would have been 14%—or 17% for the 53 weeks, it said.

As part of the restructuring associated with the IPO, Boxer declared dividends totalling R9.3 billion to Pick n Pay before the IPO.

In line with the pre-listing statement, Boxer has not declared a FY25 final dividend, and maintains its intention to pay out 40% of headline earnings per share from FY26.

Boxer intends to declare an interim FY26 dividend at the time of the H1 FY26 result.

Surge in new stores

The group said its November 2024 public listing was a milestone for the retailer, which will drive its long-term growth strategy.

This has already started to show through major expansion, with 48 news stores opening in the year, and its gross lettable area (GLA) increasing 9%.

Boxer now has a total of 525 stores, including 320 Boxer Superstores, 175 Boxer Liquor and 30 Boxer Build stores.

The new stores added include 24 net new Superstores and 25 new liquor stores.

A total of 15 Pick n Pay stores were converted to Boxer stores during the year, including 8 Superstores and 7 liquor stores.

The group said it experienced an uptick in business in these stores after being converted.

Boxer said it aims to continue this growth trajectory by adding at least 25 Superstores and 35 liquor stores each year, while maintaining mid-single-digit like-for-like sales growth.

While the group’s trading margin came in ahead of the 5.0% medium-term guidance, it did warn that it anticipates pressure from the annualisation of costs associated with now being listed and investments to drive competitiveness in the market.

It added that its weighted average number of ordinary shares will increase by around 34% to account for the full IPO share issue, which will drag on earnings and headline earnings per share in 2026.

“Given the moderating global economic outlook and competitive pressure in the SA food retail market, Boxer currently anticipates low-teens FY26 sales growth,” it said.

“Regardless of the state of the economic cycle, Boxer is resolutely focused on execution to capture its substantial long-term structural growth opportunity, and this remains Boxer’s primary focus.”

Financial results (53/52wks)

Pro-forma results (52/52wks)