Skip to main content

Pick n Pay is now offering insurance

| Retailer trading results

Despite a difficult trading environment, the group said that trading profit in its core South African business was up 16.4%, with trading profit margin up from 2.5% to 2.8% of turnover.

Headline earnings per share grew 17.5% to 91.28 cents, with diluted HEPS up 18.8%.

On a comparable basis, excluding hyperinflation gains in Zimbabwe, headline earnings per share were up 9.5%, and diluted headline earnings per share were up 10.7%.

Comparable profit before tax (PBT) was up 9.7%, with the PBT margin improving from 1.2% to 1.3%

The group said that 63 net new stores were added, with an investment of R758 million spent on instore expansions, refurbishments, supply chain capability and infrastructure.

Group chief executive (CEO) Richard Brasher said that he was pleased with another strong results – despite tough trading conditions inside and outside South Africa.

“In this environment, retailers have found it difficult to balance their two key objectives: delivering solid sales growth while maintaining profit margins,” he said.

“I am very pleased that we have succeeded in growing both our sales and our profits.  This is a significant achievement – given in particular the negative impact of foreign exchange volatility affecting our associate TM Supermarkets in Zimbabwe.”

Insurance 

Pick n Pay said that it will continue to focus on its value-added services strategy to allow customers to ‘do more in-store’.

Income from these services grew 16.1% year-on-year, with growth across all categories in Pick n Pay and Boxer, including banking, money transfers and a growing travel and event ticketing offer.

To this end, the group has launched a portfolio of insurance products in partnership with Hollard.

Pick n Pay said that this offer is currently available in 25 of its stores and has shown ‘encouraging results’ to date.

The offer will be expanded and rolled out to more stores over the next 18 months, it said.

The retailer said that it has also seen success from its exclusive partnership with TymeBank, which now has 850,000 customers.

 

Pin It

Related Articles

Woolies online sales skyrocket — but still weak...

By: Staff Writer - MyBroadband South African fashion, home, and grocery retailer Woolworths saw online sales surge during the first half of its 2024 financial year. For the 26 weeks ending 24 December 2024, online sales in the fashion, beauty an...

Shoprite first-half sales rise 14%

By Andries Mahlangu - BusinessLive Africa’s biggest grocery retailer Shoprite reported robust growth in sales in the six months ended December, with all its various store formats coming to the party save for its furniture business.  It...

Port chaos and bird flu hit Woolworths sales

  By: Nick Wilson – News24 Shares in Woolworths fell nearly 2% on Tuesday morning after it warned that SA's sputtering economic growth, a bird flu epidemic, and port chaos contributed to volume declines in its local food and fashion busines...

Spar’s IT system failure has cost the company R...

By: IOL News Local retailer Spar has been hit hard this financial year and said on Thursday that it will have to withhold a final dividend to save cash after a huge IT system failure this year.

Tough decisions made, sets the tone for a more ...

The SPAR Group lifted turnover 10.1% to R149.3 billion (2022: R135.6 billion) for the year ended 30 September 2023. This was largely driven off the back of strong performance from the Irish business which saw growth of 21.9% in ZAR terms. Souther...