Boxer Retail Limited, South Africa’s leading grocery discounter, today announced its interim financial results for the 26 weeks ended 31 August 2025 (H1 FY26), reporting strong trading momentum, solid operational execution, and progress against key strategic objectives - culminating in the declaration of Boxer’s inaugural post IPO dividend.

Boxer accelerated turnover growth, maintained a consistent trading profit margin, and absorbed additional JSE listing-related costs while delivering headline earnings growth and strengthening its balance sheet.

H1 FY26 Highlights

• Turnover up 13.9% to R22.5 billion
• Like-for-like sales growth of 5.3%, far outpacing internal selling price inflation of

-0.7%

• Trading profit increased 15.1% to R931 million
• Trading profit margin held steady at 4.1%, despite incremental listing-related costs
• Headline earnings increased 5.3% to R518 million
• Net cash position of R1.1 billion, increased from a net debt position of R180 million at FY25 year-end
• Inaugural interim dividend declared of 45.30 cents per share, representing a 40% payout ratio
• 25 new stores opened, bringing the total to 547 stores across South Africa and Eswatini
• Over 2,100 new jobs created

Boxer’s growth was volume-led, with like-for-like sales growth of 5.3%, far ahead of internal food inflation of -0.7%, signalling both consumer traction and value-driven execution. Strong performances from existing stores and a sustainable new store roll-out programme contributed to overall turnover growth of 13.9%, building on the momentum from H2 FY25.

Boxer opened 25 new stores in H1 FY26, including nine Boxer Superstores, 15 Boxer Liquor stores, and one Boxer Build, bringing the total estate to 547 stores across South Africa and Eswatini. The company remains on track to meet its full-year target of 60 new store openings, with the total number of stores in the estate having grown 11.9% year-on-year.

Continued expansions also supported local employment, with over 2,300 new jobs created and 2100 internal promotions across operations.

Despite absorbing additional costs associated with its JSE listing, Boxer maintained its trading margin at 4.1%, with trading profit up 15.1% to R931 million. Gross profit margin was maintained at 20.3%, reflecting the retailer’s disciplined approach to operating expenses and supply chain efficiency. The company expanded the reach of its supply chain this half, with the successful commissioning of Boxer’s 7^th distribution centre in Tongaat, KwaZulu-Natal, developed in partnership with JT Ross. 

The company continues to deliver on its “virtuous circle” operating model where operational efficiency unlocks savings that are reinvested into price, value, and customer experience, further driving volumes and margin sustainability.

Boxer also made progress in diversifying its revenue streams. Other trading income rose 18.4% to R193 million, driven by early monetisation of customer data through its new customer loyalty programme, the Boxer Rewards Club, and strategic alternative income initiatives. The Boxer Rewards Club has reached 2.3 million members, with increased participation reflected in higher basket sizes and repeat shopping frequency. The launch of a new Supplier Portal, supported by an upgraded Business Intelligence platform, has enabled data-driven supplier collaboration and new income opportunities.

From a balance sheet point of view, Boxer ended the period in a strong financial position of R1.1 billion net cash (excluding lease liabilities), a significant improvement from R180 million net debt at the end of FY25. This was supported by disciplined working capital management and strong cash generation.

In line with its IPO guidance and dividend policy, Boxer declared an interim dividend of 45.30 cents per share, representing a 40% payout of headline earnings per share.

Marek Masojada, Boxer CEO says:

“Today, the Boxer team is proud to share a positive set of results showing that post listing, the company has performed well and is delivering in line with previous guidance forecasts and making good progress on both our financial and operational strategies and goals. Despite a challenging first half of the year, these results reflect the important role we play in bringing good quality and exceptional value to more customers across our country.”

Looking ahead, Boxer commented that it remains on track to deliver on its FY26 growth ambitions. “Trading momentum has remained encouraging into H2, though full-year outcomes will be shaped by our performance over the key Black Friday and Festive trading periods.”

While Boxer anticipates some pressure on the full-year trading margin compared to the 5.4% margin achieved in FY25, the business remains confident in its long-term strategic position, underpinned by operating leverage, further debt reduction, and continued reinvestment into customer pricing and experience.

Strategic priorities for H2 include expanding its loyalty programme, accelerating operational efficiencies,  and opening 35 new stores. 

Boxer continues to execute against its long-term structural growth opportunity, driven by a clear purpose: “fighting for low prices every day for South African consumers.”

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