Slides
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1 H1 FY26 Results 26 weeks ended 31 August 2025
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2 H1 FY26 Results 26 weeks ended 31 August 2025 Introduction Sean Summers Results Overview Lerena Olivier Strategic Update Sean Summers
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3 INTRODUCTION • Successful turnaround of PnP Segment remains our primary goal • We are clear, as stated before, that it will be a multi-year journey • We operate in a highly constrained and very competitive market • Notwithstanding, H1 FY26 reflects further steady PnP improvement • Our Boxer business continues to deliver a strong performance • I am encouraged by both our progress and my team’s commitment
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4 H1 FY26 Results 26 weeks ended 31 August 2025 Introduction Sean Summers Results Overview Lerena Olivier Strategic Update Sean Summers
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5 GROUP KEY METRICS R58.8bn 4.9% ( LfL 4.7%) Turnover -R0.3bn improved R0.7bn Loss before tax & capital items 18.2% 30bps GP margin R0.3bn R0.1bn EBITDA* R0.3bn R0.2bn Trading profit R5.1bn R0.9bn since Feb 25 Net cash 4.8% growth Total expenses -R0.4bn improved 45.3% Headline loss * EBITDA (pre-IFRS16): Refer to Appendix 1 in Group interim financial statements
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6 TURNOVER GROWTH BY SEGMENT Turnover (Rbn) H1 FY26 H1 FY25 % change LfL* % change Pick n Pay 36.3 36.3 0.1 4.4 South Africa 34.8 34.7 0.4 4.3 Rest of Africa 1.5 1.6 (6.3) Boxer 22.5 19.8 13.9 5.3 Group 58.8 56.1 4.9 4.7 Pick n Pay SA Supers^ LfL sales growth % H1 FY26 H2 FY25 H1 FY25 Company–owned 4.8 3.6 3.1 Franchise# 1.7 1.1 (1.4) Pick n Pay SA Supers 3.8 2.7 1.3 • Pick n Pay SA Supermarkets LfL sales acceleration • Company-owned LfL +4.8% (LY +3.1%) • Franchise LfL +1.7% (LY -1.4%) • Pick n Pay segment turnover in line with LY , reflecting Store Estate Reset • Omnichannel sales +34.4% • Pick n Pay Clothing +12.0% (LfL +7.5%) • Boxer market leading sales +13.9% (LfL +5.3%) * Like-for-like: Refer to Appendix 2 in Group interim financial statements ^ Pick n Pay SA Supermarkets includes Hypermarkets and excludes Clothing standalone stores # Franchise sales refers to wholesale sales from Pick n Pay to franchisees
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7 Rbn Group H1 FY26 Pick n Pay Boxer^ Group H1 FY25 Pick n Pay Boxer^ Turnover 58.8 36.3 22.5 56.1 36.3 19.8 Trading profit/(loss) 0.3 (0.6) 0.9 0.1 (0.7) 0.8 Trading profit/(loss) margin 0.5% (1.7%) 4.1% 0.1% (2.0%) 4.1% Trading result after leases* (0.5) (1.2) 0.7 (0.7) (1.3) 0.6 Trading result after leases* margin (0.8%) (3.2%) 3.1% (1.2%) (3.5%) 3.1% * Lease finance expense less lease finance income. Refer to Appendix 1 in Group interim financial statements ^ As consolidated by the PIK Group • Pick n Pay trading loss after lease interest margin improvement +30bps • Boxer trading profit +16.2% to R0.9bn, trading margin maintained at 4.1%, reflecting strong trading result GROUP TRADING PROFIT SEGMENTATION
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8 BOXER KEY METRICS As consolidated by the PIK Group, Boxer 65.6% owned since November 2024 * EBITDA (pre-IFRS16): Refer to Appendix 1 in Group interim financial statements R22.5bn 13.9% (LfL 5.3%) Turnover 4.1% in line with LY Trading margin 20.3% in line with LY GP margin R1.1bn 14.2% EBITDA* R0.9bn 16.2% Trading profit R0.5bn 5.3% Headline earnings 8
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9 R36.3bn 0.1% ( LfL 4.4%) Turnover -R1.2bn improved R0.1bn Trading loss after leases* PICK N PAY KEY METRICS 16.9% 40bps GP margin -R0.8bn in line with LY EBITDA* -R0.6bn improved 13.5% Trading loss -R1.0bn improved R0.7bn Loss before tax & capital items * Trading loss after leases and EBITDA (pre-IFRS16): Refer to Appendix 1 in Group interim financial statements
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10 • Meaningful improvement to profitability • Loss before tax and capital items R1bn (LY R1.7bn) • Year-on-year improvement R707m • FY25 Recapitalisation delivered interest benefit R598m • Trading loss improved R97m PICK N PAY PROFIT MOMENTUM -1.5 -1.6 -1.7 -0.5 -1.0 H1 FY24 H2 FY24 H1 FY25 H2 FY25 H1 FY26 Loss before tax & capital items (Rbn) +R0.7bn 41.0%
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11 PICK N PAY TRADING RESULT OVERVIEW • Trading loss reduced to R621m • Trading margin improved +30bps • Improved GP margin +40bps • Expenses as a % of turnover +20bps • Other income +2.7%, ahead of sales growth • Store Estate Reset successfully executed • Benefits reinvested to build retail excellence • LfL expenses +6.2% ahead of LfL sales +4.4% • EBITDA in line with LY Rbn H1 FY26 H1 FY25 % change Turnover 36.3 36.3 0.1 Gross profit 6.1 6.0 2.2 Other income 1.3 1.3 2.7 Trading expenses (8.0) (8.0) 0.9 Trading loss (0.6) (0.7) (13.5) EBITDA* (0.8) (0.8) in line Gross profit margin 16.9% 16.5% Expenses as a % of turnover 22.2% 22.0% Trading loss margin (1.7%) (2.0%) * EBITDA (pre-IFRS16): Refer to Appendix 1 in Group interim financial statements
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12 GROSS PROFIT MARGIN ANALYSIS Rbn H1 FY26 % change Margin % Margin % change Pick n Pay 6.1 2.2 16.9 40bps Boxer 4.6 14.3 20.3 Flat Group 10.7 7.0 18.2 30bps • Pick n Pay GP margin +40bps to 16.9% • Price competitive • Improved customer offer • Investment in franchise • Category management & logistic efficiencies • Further momentum on waste reduction • Pick n Pay SA internal selling inflation 2.1%, in line with LY , below CPI food 4.6% • Positive LfL volume growth 2.2% H1 FY25 Efficiencies (net of price investment) Waste improvement H1 FY26 Pick n Pay gross profit margin % 40bps 16.5 0.2 0.2 16.9
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13 TRADING EXPENSES Pick n Pay (Rbn) H1 FY26 % change LfL* % change Employee costs 3.3 3.3 7.4 Occupancy costs 1.1 (10.8) 1.5 Operations costs 2.1 0.6 6.1 Merchandise & admin 1.6 6.3 8.2 Expected credit loss allowance 0.1 (17.4) Total 8.0 0.9 6.2 * Like-for-like: Refer to Appendix 2 in Group interim financial statements ^ As consolidated by the PIK Group • Pick n Pay LfL expenses driven by investment to build a future-fit business • Enhanced in-store customer experience - Focused staff training - Selective hiring of key skills • Brand investment • Remaining expenses well controlled • Pick n Pay trading expenses only +0.9% • Store Estate Reset & related depreciation savings • Occupancy costs excluding lease profits -1.8% • LFL expenses key focus area going forward Group (Rbn) H1 FY26 H1 FY25 % change Pick n Pay 8.0 8.0 0.9 Boxer^ 3.8 3.4 14.0 Total 11.9 11.4 4.8
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14 PICK N PAY NET FINANCE COSTS Pick n Pay (Rbn) H1 FY26 H1 FY25 % change Net funding interest 0.1 (0.4) (132.6) Net lease interest (0.5) (0.6) (2.2) Net finance costs (0.4) (1.0) (60.6) • Pick n Pay net finance costs reduced 60.6% • Net funding interest positive swing • H2 FY25 debt paydown on conclusion of recapitalisation • Net lease interest reflects Store Estate Reset
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15 GROUP EARNINGS PER SHARE H1 FY26 H1 FY25 % change Headline loss (Rm) (439) (803) 45.3 HEPS (cents) (59.77) (136.60) 56.2 EPS (cents) (67.53) (140.83) 52.0 WANOS* (millions) 734.5 587.5 25.0 • Significant improvement in HEPS +56.2% • Net funding interest benefit R537m • 25% increase in WANOS from PIK Rights Offer Aug 2024 • Boxer 34.4% non-controlling interest Nov 2024 • Excluding these items, HEPS improved 27.8% reflecting trading result improvements in both Pick n Pay and Boxer *WANOS: weighted average number of ordinary shares ^HEPS before change in WANOS, Boxer NCI and interest benefit HEPS^ Boxer NCI Change in WANOS Interest benefit Reported HEPS Analysis of HEPS growth 27.8% - 22.3% 10.9% 39.8% 56.2%
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16 FY25 Net cash opening balance Cash flow from operations* Net interest received Working capital movement Net capex^ Net cash after operational FCF Share purchases H1 FY26 Net cash closing balance PICK N PAY FREE CASH FLOW PROFILE Cash generation and utilisation (Rbn) FCF – Free cash flow * Before non-cash flow impact of IFRS16 & include FCF items for tax & non-cash shares ^ Net capex include asset disposal proceeds - 0. 8 4.3 0.1 0.7 - 0.4 4.0 - 0.1 3.9 Operational Free Cash Flow -R0.3bn
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17 WORKING CAPITAL MANAGEMENT Net working capital movement (Rbn) H1 FY26 H1 FY25 Pick n Pay 0.7 0.6 Boxer^ 1.0 0.2 Group liquidity release 1.7 0.8 Pick n Pay (Rbn) H1 FY26 H1 FY25 % change Inventory 7.0 7.2 (3.5) Trade and other receivables 3.8 3.8 (1.3) Trade and other payables (10.7) (11.3) (5.8) Net working capital (0.2) (0.6) • Group working capital liquidity release R1.7bn • Boxer R1.0bn, Pick n Pay R0.7bn • Cyclical timing between H1 / H2 • Some period-end cut-off benefit • Pick n Pay working capital management • Dedicated focus on inventory optimisation • Improved franchise model reflected in debt control ^ As consolidated by the PIK Group
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18 H1 FY25 H1 FY26 FY25 FY26 Forecast Boxer Clothing Pick n Pay R0.6bn R0.9bn R2.1bn R1.5bn Net capital investment* (Rbn) * Capex as per cash flow statement, net of asset disposal proceeds CAPEX INVESTMENT • H1 FY26 Group gross capex R1.0bn (R0.9bn net of disposal proceeds) • Boxer and Clothing aligned to expansion • Measured Pick n Pay investment • Focus on customer facing strategies • Strategic revamps and franchise acquisitions • Full year forecast +R0.4bn to R0.9bn • FY26 Group capex guidance of R2.2bn (R2.1bn net of disposal proceeds) R0.3bn R0.5bn R1.1bnR0.2bn R0.3bn R0.9bn R0.1bn R0.1bn R0.1bn R0.5bn R0.1bn R0.9bn
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19 NET FUNDING Rm Aug 2025 Feb 2025 Aug 2024 Gross debt (650) (1 150) (7 246) Cash & cash equivalents 5 713 5 328 4 951 Group net cash/(debt) 5 063 4 178 (2 295) Pick n Pay net cash 3 937 4 358 Boxer net cash/(debt) 1 126 (180) • Group net cash reserves of R5.1bn • R0.9bn improvement since Feb 25 (R1.3bn Boxer, -R0.4bn Pick n Pay) • Pick n Pay working capital facilities R3.0bn • Unsecured and unutilised
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20 H1 FY26 Results 26 weeks ended 31 August 2025 Introduction Sean Summers Results Overview Lerena Olivier Sean Summers Strategic Update
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21 • Our H1 FY26 results reflect further steady PnP improvement • This demonstrates that our strategic turnaround remains on track • Our success will be determined by: 1. A strengthening of our customer offer 2. Acceleration in Like-for-Like sales 3. Establishing a sustainable future-fit business 4. Growth engines supporting the turnaround • Ultimately, rebuilding retail excellence will deliver long-term success STRATEGIC UPDATE
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22 STRENGTHENING OUR CUSTOMER OFFER RANGE QUALITY VALUE SERVICE • Extended ranges across key categories • Strengthened our Private Label offering • Targeted category interventions • Ongoing focus to grow and improve our Fresh offer • Fresh programmes launched (MasterCut, Fresh Academy, Managers) • Priority focus on in-store execution and compliance • Maintaining selling price inflation below CPI Food • PnP matching market price on key product lines • More strategic promotions deliver superior value • Recruiting to ensure key positions filled in stores • Phase 2 customer service training for 28,000 staff • In-store standards actively managed
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23 OUR FOCUS ON FRESH – THE VIRTUOUS CIRCLE An improved offer and sharper range... ...with well trained service area staff ...which drives higher sales and growth ...and less waste and better margin 2 4 3 1
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24 ONGOING IMPROVEMENT IN ONLINE Choose your preferred store Broad range to shop Find what you need Delivered ASAP! Full power of Smart Shopper Or when it best suits • Successful migration to NEW asap! grocery on-demand app • Seamless transition and smoother shopping experience - enhancing value for customers • Strong total on-demand* growth in H1 at 44% yoy • Online division profitable on fully costed basis * Total On-Demand comprises of asap! and Mr D
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25 Store opened April 2025 The Verge Store Kuils River Store Store revamp August 2025 FRANCHISE – A STRENGTHENING PARTNERSHIP • Strong collaboration with our Franchise partners a key strategic priority – driving mutual value • New Franchise agreement in place, and ongoing engagements strengthening our partnership • Successful recent Franchise Conference, reinforcing unified approach and shared purpose
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26 • Hypermarkets remain a key value and volume driver for us • Fulfills an important weekly and monthly shopping mission • Our 4 key priorities include: 1. Reflowing Hypers to improved customer experience 2. Resizing and refurbs to optimise trading densities 3. Unique high-value Hyper specific deals and promos 4. Step-changing breadth of range all under one roof • We will have 23 Hypers by the end of FY26, with limited further conversions of large Supermarkets being evaluated OUR HYPERMARKET ASSETS
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27 1.7% -2.20% -1.20% -0.20% 0.8 0% 1.8 0% 2.8 0% 3.8 0% FY24 H2 FY25 H1 FY25 H2 FY26 H1 4.8% -3.00% -2.00% -1.00% 0.0 0% 1.0 0% 2.0 0% 3.0 0% 4.0 0% 5.0 0% FY24 H2 FY25 H1 FY25 H2 FY26 H1 ACCELERATION IN LIKE-FOR-LIKE SALES Owned Stores LfL sales growth % Franchise LfL issues growth % • Acceleration in LfL sales across Owned and Franchise Supers* confirms tangible progress in our plans • LfL customer growth accelerated to 7.4% in H1 FY26 from 3.7% in FY25 across Owned stores • Encouraged by improving topline performance of our Franchise partners – closing gap to Owned * Pick n Pay SA Supermarkets, includes Hypermarkets and excludes Clothing standalone stores
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28 ESTABLISHING A FUTURE-FIT BUSINESS Significant progress across focus areas to establish a sustainable future-fit business: Nearing completion of all priority conversions and closures Initiatives delivering tangible improvements – more planned Notable reduction in inventory levels across targeted areas Costs well controlled - future strategic partnership Rightsizing well underway – workflow automation a priority Optimising store operations a key focus area Store Estate Reset Shortage (incl. waste) Support Offices Working Capital Store Operations Supply Chain
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29 STORE ESTATE RESET NEARING COMPLETION • We have successfully executed on our store estate reset plan • 65 loss-making company-owned stores expected to have converted or closed by the end of FY26 • This, together with the stores turning profitable, will see us reach our original target of c.100 stores 40 25 9 27 101 FY25 Convert/Close FY26 Convert/Close Remainder FY27/FY28 Stores turn profitable Total Loss-making stores addressed through Store Estate Reset H1 FY26: 14 H2 FY26: 11
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30 STRATEGIC SUPPLY CHAIN PARTNERSHIP • Excited to announce our new long-term strategic partnership with DP World • Will significantly reduce our distribution costs and raise service levels across our operations • The partnership not only targets lower unit costs, but also to keep shelves fully stocked, improve fresh quality and faster replenishment • Plans will ensure a stable peak period with tangible savings expected from the next fiscal
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31 DIGITAL TRANSFORMATION – FUELING THE FUTURE Retail Media • GIG Retail appointed as new partner to fast-track growth and capabilities • Strong Retail Media income growth achieved in H1 FY26 • >600k new customers joined Smart Shopper in H1 FY26 • Registered Smart Shopper sales up 9% in H1 vs LY • Won multiple accolades at recent 2025 SA Loyalty Awards Data and Analytics • New all-in-one Data Insights Platform launching in November • PnP Cloud Data Warehouse powering AI and advanced analytics • Refined order-forecasting models to optimise picker/driver capacity VAS • First retailer to enable Capitec direct deposits • Mutliple FNB mini branches opened in PnP stores - FNB eWallet withdrawals launched • PnP mobile re-launched MVNO
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32 RECENT AWARDS - AFFIRMING OUR PROGRESS Pick n Pay has reaffirmed its leadership in loyalty innovation by winning multiple accolades at the prestigious 2025 SA Loyalty Awards. These awards affirm that our commitment to innovation, data-driven insights and personalised rewards is resonating with South Africans in meaningful ways
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33 CLOTHING WINNING MORE CUSTOMERS • Opened 400th store recently at Westgate Mall - now trading across 406 stores • Investing in future growth with 17 of our top 100 stores revamped in the half • Market share gains continue - notably strong performance across menswear, kidswear and baby • Local manufacturing increased by 29% in volume – now totaling 46% of sales
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34 BOXER H1 FY26 HIGHLIGHTS • Strong operational momentum - Accelerated turnover and LfL growth since H2 FY25 - Consistent market share gains - Opened 25 new stores to reach 547 stores - Stable trading profit margin despite listed-entity related expenses • Building on our successful November 2024 IPO - Rapid de-gearing and now net cash positive - Maiden dividend declared post IPO • Executed on key strategic initiatives - Boxer Rewards Club now 2.3m members (12 months after launch) - Launch of Boxer Supplier Portal (B-Inside) - KZN Tongaat DC Facility opened on-time - Community support an ongoing focus and priority 34
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35 SUPPORTING OUR COMMUNITIES Schools Club Disaster Relief Feed the Nation Food Gardens Beach Cleanups Food Donations Free educational materials reaching 2.3 million learners from >3,100 schools Rapid response with food and essentials in partnership with Disaster Management and Red Cross 182 community food garden initiatives that help support >11,000 families Waste collected in nationwide beach and community cleanups Donation of groceries to NPOs and other community-based organisations Addressing hunger and food insecurity for vulnerable children & families
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36 UNITED TO UPLIFT AND INSPIRE OUR NATION PROUD RETAIL SPONSOR OF THE SPRINGBOKS! “I know how vital it is to have partners who believe in our journey — and Pick n Pay is one of those trusted names every South African knows and respects. When a brand like Pick n Pay stands with us, it sends a powerful message that rugby is for everyone, and that unity and pride are at the heart of our nation.” “Having Pick n Pay as our sponsor is a powerful message to our girls that we are “seen”. The investment helps grow the women's game, inspiring young girls to dream big and play hard. It also helps us build a stronger connection with our fans, showing that major brands believe in the power and potential of women's rugby in South Africa” Cindy Booi Siya Kolisi
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37 CLOSING REMARKS AND OUTLOOK • PnP made meaningful progress in H1 FY26 - much remains to be done • LfL sales and GP margin both heading in the right direction • For now, this is not being reflected in trading profit as we reinvest in our ability to serve customers • Boxer segment will continue to grow turnover and trading profit as per existing guidance • PnP segment targeting break-even at trading profit after lease interest level by FY28 • FY26 trading loss likely to be broadly in line with FY25 • Expect to generate positive operational leverage from FY27 as Future Fit Structure initiatives take effect • R3.9bn net cash sustains PnP segment on its journey to profitability. FY26 cash burn guided at c.R1.6bn • PIK Group will not declare a dividend until the Group has returned to sustainable profitability Our Strategic Priorities