Skip to main content

Pick n Pay expecting a fall in earnings

| Retailer trading results

Pick n Pay is preparing to report a 50 percent fall in earnings for the 26 weeks to August 2020 due to lockdown restrictions, the increased cost as a result of the Covid-19 crisis, and the one-off costs of the voluntary severance programme (VSP), the company said today.

Pick n Pay said, however, the VSP programme which commenced in March was expected to be cost-neutral for the full 2021 financial year, as compensation packages would be fully recouped through cost savings in the second half of the year.


Comparable headline earnings per share for the 26 weeks to 30 August 2020, excluding any impact from hyperinflation accounting in Zimbabwe, would be down more than 50 percent or more than 42.52 cents on the reported 85.03 cents of the previous corresponding period, said the company.

Chief executive Richard Brasher said he was proud of the leadership and dedication showed by everyone in the Pick n Pay and Boxer teams over the past four months.

“Through skill and tenacity, our stores have remained open and safe for staff and customers. This is a tribute to our management teams, store colleagues and franchise partners across the country. By working closely with our suppliers and service providers, our stores have remained stocked with the food and groceries that customers need and want. We have shown innovation, for example re-engineering our digital platforms to meet the large expansion in demand for online and click-and-collect shopping,” said Brasher.

Pick n Pay said while the trajectory and impact of Covid-19 in the coming months remained highly uncertain, the group was hopeful that many of the costs and trading restrictions which have characterised the first half of the financial year would not be repeated.

The group expects to issue a further trading statement in due course.



Pin It

Related Articles

Positive growth continues for The SPAR Group

SPAR Group turnover increased by 8.8% for the 24 weeks ended 15 March 2024, with a well-maintained policy of continued capital investment  across the wholesale and retail value chain.

Unaudited results for the 26 weeks ended 31 Dec...

Double-digit growth sees half year sales reaching R121 billion - Group sale of merchandise increased by 13.9% to R121.1 billion - Supermarkets RSA sale of merchandise increased by 14.6% to R97.5 billion - Diluted headline earnin...

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...