Interim report
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Unaudited Group Condensed Interim Financial Statements For the 26 weeks ended 31 August 2025 26 H1 FY
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www.pnp.co.zawww.pnp.co.za Review of operations 1 Group statement of comprehensive income 6 Group statement of financial position 7 Group statement of changes in equity 8 Group statement of cash flows 9 Notes to the financial information 10 Appendix 1 – Pro forma financial information 20 Appendix 2 – Additional information 22 Overview of store estate 24 Number of stores 25 Corporate information 26 Contents
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Unaudited Group condensed interim financial statements for the 26 weeks ended 31 August 2025 1 Group result summary H1 FY26 saw the Group successfully execute on several of its strategic initiatives, while also reporting a meaningful improvement to profitability. The Group delivered a 4 5.3% headline loss reduction to R4 39 million, vs. a loss of R8 03 million in H1 FY25. The improved result was driven by a R227 million trading profit increase , in conjunction with a R537 million positive net funding interest swing, as the full benefit of the FY25 recapitalisation was realised in Group earnings. Group turnover increased 4.9%, with 13.9% growth from Boxer and 0.1% grow t h (4.4% like-for-like) from the Pick n Pay segment. Gross profit margin expanded 0. 3% to 18.2%, driven by a recovery in the Pick n Pay segment gross profit margin. Other income grew 4.5%. Trading expenses increased by 4.8%, driven by the Boxer store rollout. Group t rading profit improved by 273.5% year-on-year to R310 million, reflecting a R931 million Boxer trading profit (+16.2%) and a R621 million Pick n Pay trading loss (13.5% improvement). Review of operations Financial results for the 26 weeks ended 31 August 2025 Key Group financial indicators 26 weeks to 31 August 2025 H1 FY26 26 weeks to 25 August 2024 H1 FY25 % improvement Turnover R58.8 billion R56.1 billion 4.9 Trading profit R310 million R83 million 273.5 Trading profit margin 0.5% 0.1% Loss before tax and capital items (R317 million) (R1 052 million) 69.9 Headline loss (R439 million) (R803 million) 45.3 Headline loss per share (HEPS) (59.77 cents) (136.60 cents) 56.2 H1 FY26 Group highlights H1 FY26 saw the Group ’s return to a full execution focus, following the completion of the recapitalisation in November 2024. Achievements during the period include: • Further Pick n Pay SA Supermarkets like-for like sales acceleration : like-for-like sales momentum increased to 4.8% for c ompany-owned supermarkets and 1. 7% for franchise s upermarkets as customers increasingly turned to Pick n Pay as their supermarket of choice; • Pick n Pay segment gross profit margin recovery : Pick n Pay gross profit margin improved by 0.4%, demonstrating that the like-for-like sales growth was driven by a considerably strengthened customer offer; • Another strong performance from Boxer : Boxer’s market leading 13.9% turnover growth (5.3% like-for-like) is testament to its position as South Africa ’s leading grocery discounter; • Group profit recovery : The Group reduced its interim headline loss by 45.3% to R439 million. Group net finance costs decreased 44.8% to R627 million, which was the net impact of the positive funding interest swing and a 3.9% increase in net lease interest , where Boxer ’s relatively high lease interest growth, driven by the store rollout, was offset by a reduction in Pick n Pay. The Group loss before tax and capital items reduced 69.9% to R317 million, vs. a loss of R1.1 billion in H1 FY25. After accounting for capital items and the 3 4.4% Boxer non-controlling interest, the attributable loss after tax recovered 40 .0% to a loss of R496 million from a loss of R827 million in H1 FY25. Turnover (Rm) H1 FY26 H1 FY25 % change Boxer 22 518 19 774 13.9 Pick n Pay* 36 300 36 278 0.1 South Africa 34 788 34 665 0.4 Rest of Africa 1 512 1 613 (6.3) Group 58 818 56 052 4.9 * Pick n Pay turnover growth impacted by a net reduction of the store estate of 59 company-owned and franchise supermarkets year-on-year.
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www.pnp.co.za2 Review of operations Boxer segment operational performance Boxer, the Group ’s 65.6% owned subsidiary (following the 28 November 2024 Boxer IPO) reported a strong H1 FY26 performance. As consolidated by the Group, Boxer turnover grew 13.9% year-on-year to R22.5 billion, and trading profit grew 16.2% year-on-year to R931 million. The full H1 FY26 Boxer results, as published by Boxer Retail Limited Group on 13 October 2025 , can be found on the Boxer website at https://boxerinvestor.co.za/. Pick n Pay segment operational performance Pick n Pay (PnP) segment turnover Pick n Pay continued to make pleasing progress on its turnover objective of driving improved like-for-like sales growth in profitable stores whil e closing or converting those stores with limited prospect for a profitable recovery. Pick n Pay continued to build traction on both of these strategic initiatives over the interim period. Pick n Pay turnover grew 0.1% in H1 FY26, with Pick n Pay South Africa increasing 0.4% and Rest of Africa declining 6.3% as the impact of the termination of the Namibian franchise agreement from July 2025 was felt . Internal selling price inflation for the period was 2.1%, in line with the 2.1% reported for FY25, and well below Statistics SA Food CPI of 4.6%, as Pick n Pay maintained its commitment to deliver low prices to customers. South African company-owned and franchise supermarkets H1 FY26 l ike-for-like sales for company-owned supermarkets grew 4.8% year-on-year, representing the 3rd consecutive period of upward momentum as an improved customer offering translated into increased customer visits. Franchise like-for-like sales growth increase d to 1.7% as the Group’s efforts to improve the franchise offering to drive sales and profitability for Pick n Pay and our f ranchisee partners began to bear fruit. Further progress was made on the closure and conversion of loss- making stores. 14 underperforming Pick n Pay company -owned supermarkets were closed or converted to other formats during H1 FY26 , taking the total number of c ompany-owned supermarkets closed or converted under this strategy over the past 18 months to 5 4. During the period , three Pick n Pay South Africa franchise supermarkets were converted to company-owned stores, with another 13 franchise supermarkets converted to company-owned supermarkets in Botswana. Like-for-like turnover growth 26 weeks H2 FY24 26 weeks H1 FY25 26 weeks H2 FY25 26 weeks H1 FY26 PnP South Africa 0.0% 1.1% 3.1% 4.3% PnP SA supermarkets (0.2%) 1.3% 2.7% 3.8% PnP SA company-owned supermarkets (0.5%) 3.1% 3.6% 4.8% PnP SA franchise supermarkets (0.3%) (1.4%) 1.1% 1.7% PnP Clothing standalone stores 10.7% 0.2% 3.8% 7.5% Note: 1) PnP SA Supermarkets includes Hypermarkets. 2) Franchise sales refers to wholesale sales from Pick n Pay to franchisees. Pick n Pay Online Pick n Pay’s online business continues to grow at pace, with H1 FY26 turnover increasing 34.4%. Turnover of the on-demand online grocery platforms, asap! and PnP groceries on the Mr D app, grew 44% year -on-year. Online continues to see strong growth from company-owned supermarkets, with f ranchise supermarkets now also making a significant contribution to online turnover growth . A next -generation asap! app was launched in April 2025, which integrated Smart Shopper rewards, value-added services, and a completely redesigned, intuitive interface. This launch drove a 131% growth in first time buyers, 78% of which originated from the new app. The platform now lists over 35 000 items, covers 620+ stores nationwide, and is supported by more than 2 500 drivers, ensuring faster, more reliable deliveries than ever before. Pick n Pay Clothing Pick n Pay Clothing continued to deliver strong growth in the first half of FY26. Clothing turnover growth in standalone stores (reported within the Pick n Pay segment) was 12.0% (7.5% like-for-like). Clothing momentum moderated in the last two months of the p eriod as the earlier softness in the base normalised. Pick n Pay Clothing opened net 9 stores during H1 FY26 to bring the total estate to 424 stores, consisting of 406 company-owned and 18 franchise stores. Pick n Pay segment gross profit Pick n Pay ’s H1 FY26 gross profit increased 2.2%, with gross profit margin expansion of 0.4% year-on-year to 16.9%. The improved gross profit margin was due to the combined impacts of reduced waste especially within the Fresh category, better category management, and logistics efficiencies, all of which were partially offset by a reduced margin on sales to franchisees in line with Pick n Pay ’s efforts to improve the profitability of its franchise partners. Pick n Pay segment trading expenses H1 FY26 trading expenses grew 0.9% year-on-year to R8.0 billion. Total trading expenses growth was well contained as a result of the store closures and conversions. On a like-for-like basis however, trading expenses increased by 6. 2% year-on-year, ahead of the 4.8% company-owned supermarkets sales growth. The relatively high like-for-like trading expense growth was driven by employee costs , as operational and customer facing capacity was built, and merchandise and administration costs , due to increased advertising spend.
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3 Unaudited Group condensed interim financial statements for the 26 weeks ended 31 August 2025 Review of operations Employee costs – increased 3.3% to R3.3 billion. The slight increase in employee costs, despite the positive impact of the closed or converted c ompany-owned supermarkets, was the result of selective hiring of key skills in stores and regional offices to improve in-store execution and drive like-for-like sales, together with above -inflation store level wage increases. Occupancy costs – declined 10.8% to R1.1 billion. Occupancy costs benefitted from a R12 6 million IFRS16 profit on lease termination (R20 million in H1 FY25), which arose from store closures and conversions. The profit on lease termination was partially offset by some once-off costs relating to the Store Estate Reset p rogramme. Excluding IFRS16 profit on lease terminations from both periods, occupancy costs declined 1.8 % year-on-year reflecting the impact of the planned store closures and conversions . Operations costs – increased 0.6% to R2.1 billion. Increased energy and utility costs, driven by price increases, exerted upward pressure on operations costs when measured on a like-for-like basis. PPE depreciation and amortisation declined during the period as a result of store closures and conversions. Merchandising and administration costs – increased 6.3 % to R1.6 billion as a result of increased advertising costs as Pick n Pay invested in the brand to drive turnover growth. Expected credit loss allowance – the charge declined 17.4% from R86 million to R 71 million. Pick n Pay segment trading profit Pick n Pay H1 FY26 trading loss reduced to R621 million (-1.7% trading margin) from R718 million (-2.0% trading margin) in H1 F Y25. The improvement was driven by an improved gross profit margin, which was able to offset the slight increase in trading expenses as a percentage of turnover. Rm H1 FY26 H1 FY25 % change Turnover 36 300 36 278 0.1 Gross profit 6 132 6 000 2.2 Other income 1 296 1 262 2.7 Trading expenses (8 049) (7 980) 0.9 Employee costs (3 320) (3 214) 3.3 Occupancy costs (1 050) (1 177) (10.8) Operations costs (2 050) (2 038) 0.6 Merchandise and admin (1 558) (1 465) 6.3 Expected credit loss allowance (71) (86) (17.4) Trading loss (621) (718) (13.5) Gross profit margin 16.9% 16.5% Trading expenses as % of turnover 22.2% 22.0% Trading loss margin (1.7%) (2.0%) Group trading profit segmentation H1 FY26 H1 FY25 Rm Pick n Pay Boxer Group Pick n Pay Boxer Group Turnover 36 300 22 518 58 818 36 278 19 774 56 052 Trading loss/(profit) (621) 931 310 (718) 801 83 Trading profit/(loss) margin (1.7%) 4.1% 0.5% (2.0%) 4.1% 0.1% Net lease finance expense# (543) (229) (772) (555) (188) (743) Trading (loss)/profit after lease interest* (1 164) 702 (462) (1 273) 613 (660) Trading (loss)/profit after lease interest margin (3.2%) 3.1% (0.8%) (3.5%) 3.1% (1.2%) # As per the Statement of Comprehensive Income. Lease finance expense less lease finance income, which is income received from franchise sub-leases where the Group holds head leases. * Refer to Appendix 1, Pro forma financial information note 3. Group net finance costs Group net finance costs, including implied interest charges under IFRS 16, declined 44.8% year-on-year to R627 million. Pick n Pay segment net finance costs declined 60.6% year-on-year to R396 million (due to the recapitalisation and the Store Estate Reset programme ), while Boxer net finance costs increased 79.1% year-on-year to R 231 million (due to debt taken on prior to the IPO and store estate growth). Funding interest – Group net funding interest swung from a R392 million net expense in H1 FY25 to R145 million net income in H1 FY26. The was driven by the Pick n Pay segment, where the R451 million H1 FY25 net expense swung to R147 million net income in H1 FY26, which was the result of the H2 FY2 5 debt paydown on conclusion of the recapitalisation programme . Lease interest – Implied net interest charges under IFRS 16 increased 3.9% year-on-year to R772 million. The increase was primar ily driven by the store rollout in Boxer (lease interest up 21.8% year-on-year), with net lease interest in the Pick n Pay segment declining by 2.2% , reflecting the progress of the S tore Estate Reset program me.
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www.pnp.co.za4 Review of operations Net finance costs (Rm) H1 FY26 H1 FY25 % change Group (627) (1 135) (44.8) Net funding interest1 145 (392) (137.0) Net lease interest2 (772) (743) 3.9 Pick n Pay (396) (1 006) (60.6) Net funding interest1 147 (451) (132.6) Net lease interest (543) (555) (2.2) Boxer (231) (129) 79.1 Net funding interest (2) 59 (103.4) Net lease interest (229) (188) 21.8 1 Net funding interest includes interest received on trade and other receivables of R36 million and R45 million in H1 FY26 and H1 FY25 respectively, which is primarily interest income on overdue franchise receivables within the Pick n Pay segment. 2 As per the Statement of Comprehensive Income. Lease liability finance costs less net investment in lease receivables finance income, which is income received from sub-leases where the Group holds head leases. Group capital items The Group recorded an H1 FY26 capital loss of R84 million, compared with R31 million in H1 FY25. Of this, R64 million came from within the Pick n Pay segment, and R20 million from Boxer. The R84 million total loss reflected a R45 million asset impairment and a R39 million net loss on disposal of assets. Group tax The Group ’s effective tax rate of 19.5% reflects the losses incurred in the Pick n Pay segment . The Group does not expect to pay tax in the Pick n Pay segment for the foreseeable future, given the current deferred tax asset and the anticipation of further losses within this segment. Earnings per share The headline loss reduced by 45.3% to R4 39 million, vs. a loss of R803 million in H1 FY25. Per share earnings metrics were impacted by the August 2024 PIK Rights Offer, which resulted in the weighted average number of ordinary shares in issue , net of treasury shares , (WANOS) increasing by 25% from 587.54 million for H1 FY25 to 734.53 million for H1 FY26. On a full year FY26 basis, the Group’s WANOS will increase by c. 10.8% year-on-year to c. 734 million on account on the above- mentioned PIK Rights Offer. The Group also notes that the 34.4% Boxer non-controlling interest, which was consolidated for three months within FY25, will be consolidated for the full year FY26. Headline earnings per share (HEPS) – The h eadline loss per share reduced by 56. 2% to a loss of 59.77 cents per share. All impairment losses and other capital items are excluded from the calculation of headline earnings. Earnings per share (EPS) – The loss per share reduced by 52.0% to a loss of 67.53 cents per share, and includes all items of a capital nature. Detailed review of Group financial position Funding Group net cash (excluding leases) at period-end was R5.1 billion, including R3.9 billion of net cash within Pick n Pay. The Group net cash position improved by R885 million since FY25 year-end , reflecting a R1.3 billion positive swing within Boxer, and a R421 million cash utilisation within Pick n Pay. The Pick n Pay segment has R3.0 billion of short-term working capital facilities in place to fund intra-month working capital requirements where necessary. This facility is unsecured and is not guaranteed by Boxer Retail Limited. Funding (Rm) H1 FY26 FY25 H1 FY25 Group gross debt (650) (1 150) (7 246) Group cash and 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) Working capital Working capital released R1. 8 billion of Group liquidity in H1 FY26. This included a R 712 million liquidity release within Pick n Pay and a R1.0 billion release within Boxer. The H1 FY26 liquidity release is attributed to the following: • Normal seasonality, where both Pick n Pay and Boxer ordinarily release liquidity in H1 and absorb liquidity in H2; • A payables cut-off impact at the beginning and end of the period for both Pick n Pay and Boxer . Net working capital movement (Rm) H1 FY26 H1 FY25 Pick n Pay 712 578 Boxer 1 040 244 Group liquidity release 1 752 822 Group capital investment The Group invested R1. 0 billion in capital projects in H1 FY26, a 64.0% increase on the R0.6 billion invested in H1 FY25. Net capital investment (i.e. net of proceeds from asset disposals) totalled R0.9 billion, a 68.3 % increase on the R0.5 billion invested in H1 FY25. Increased H1 FY26 capital investment was driven by both Pick n Pay, where the conclusion of the recapitalisation facilitated increased investment, and Boxer, which sustained its store rollout and infrastructure build projects. Group gross capital investment for the FY26 financial year is likely to be approximately R 2.2 billion, including R 1.1 billion for each of Pick n Pay and Boxer. Net capital investment (Rbn) H1 FY26 H1 FY25 % change Pick n Pay 0.4 0.2 54.0 Boxer 0.5 0.3 79.0 Group 0.9 0.5 68.3
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Unaudited Group condensed interim financial statements for the 26 weeks ended 31 August 2025 5 Review of operations Shareholder distribution As a result of the headline loss incurred, the PIK Board has not declared an interim dividend. While the Group is now well capitalised following the successful completion of the two-step recapitalisation plan, the PIK Board does not expect to declare any dividends until the Group has returned to sustainable profitability. Group strategic plan and outlook H1 FY26 saw steady progress in the Group ’s profit recovery. Boxer ’s strong H1 FY26 performance was the result of outstanding operational execution, and Boxer will continue to drive its store rollout as it captures its substantial long-term structural growth opportunity. Within Pick n Pay, much has been achieved. Accelerated like -for-like sales growth shows that customers are once again choosing Pick n Pay, and the gross profit margin recovery demonstrates that this is a sustainable recovery. The project to exit unprofitable stores has been successfully executed on, with 6 5 loss-making company -owned supermarkets expected to have been closed or converted by the end of FY26. This, taken together with stores that have become profitable, or have good prospects of becoming so, means that this leg of the strategic plan will largely be concluded by the end of the financial year. However, Pick n Pay continues to be loss -making at the trading profit level, with company -owned supermarket like-for-like sales growth lagging slightly behind like-for-like operating cost growth in the reporting period. The multi -year journey of return ing Pick n Pay to a profitable and future -fit business continues to be tackled in a purposeful and methodical manner. On a full-year FY26 basis, the Group expects the Pick n Pay segment trading loss to be broadly in line with FY25. This is because Pick n Pay continues to invest in critical skills to rebuild retail excellence to facilitate the achievement of the trading profit after lease interest break-even target. In the 6 weeks post period-end, the Pick n Pay segment ’s South African s upermarket like-for-like sales growth was approximately in line with that achieved in H1 FY26. We thank all Boxer and Pick n Pay colleagues, and our valued franchise partners, for their commitment and contribution as we rebuild and re-energise the Group for a prosperous future. James Formby Sean Summers Chair Chief Executive Officer 27 October 2025
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www.pnp.co.za6 Unaudited Unaudited Audited 26 weeks to 26 weeks to 53 weeks to 31 August 25 August 2 March 2025 2024 2025 Note Rm Rm Rm Revenue 2 60 599 57 762 122 124 Turnover 2 58 818 56 052 118 610 Cost of merchandise sold (48 106) (46 044) (96 846) Gross profit 10 712 10 008 21 764 Other income 1 489 1 425 2 949 Franchise fee income 2 582 590 1 244 Operating lease income 2 56 53 111 Commissions and other income 2 851 782 1 594 Trading expenses (11 891) (11 350) (22 954) Employee costs (5 006) (4 714) (9 516) Occupancy costs (1 684) (1 740) (3 460) Operations costs (3 200) (3 026) (6 217) Merchandising and administration costs (1 930) (1 784) (3 557) Expected credit loss allowance (71) (86) (204) Trading profit 310 83 1 759 Finance income 2 292 285 565 Funding finance income 191 182 349 Leases finance income 101 103 216 Finance costs 3 (919) (1 420) (2 561) Funding finance expense (46) (574) (792) Leases finance expense (873) (846) (1 769) Loss before tax before capital items (317) (1 052) (237) Loss on capital items (84) (31) (388) Net loss on disposal of assets (39) (9) (94) Loss from impairments of assets (45) (22) (294) Loss before tax (401) (1 083) (625) Tax 78 256 (26) Loss for the period (323) (827) (651) Attributable to: Equity holders of the parent (496) (827) (736) Non-controlling interest 173 – 85 Other comprehensive income, net of tax Items that will not be reclassified to profit or loss 4 2 2 Remeasurement in retirement scheme assets 6 2 3 Tax on items that will not be reclassified to profit or loss (2) – (1) Items that may be reclassified to profit or loss 2 (20) (9) Foreign currency translations 4 (12) (8) Movement in cash flow hedge (2) (8) (1) Total comprehensive loss for the period (317) (845) (658) Attributable to: Equity holders of the parent (490) (845) (743) Non-controlling interest 173 – 85 Earnings per share Cents Cents Cents Basic loss per share 4 (67.53) (140.83) (111.01) Diluted loss per share 4 (67.53) (140.67) (111.01) Group statement of comprehensive income for the period ended
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Unaudited Group condensed interim financial statements for the 26 weeks ended 31 August 2025 7 Restated* Unaudited Unaudited Audited As at As at As at 31 August 25 August 2 March 2025 2024 2025 Note Rm Rm Rm ASSETS Non-current assets Intangible assets 1 333 1 065 1 067 Property, plant and equipment 8 808 8 952 8 675 Right-of-use assets 10 831 11 155 11 043 Net investment in lease receivables 1 834 1 948 2 017 Deferred tax assets 3 092 2 686 2 749 Loans 130 147 143 Retirement scheme assets 65 55 60 Investment in insurance cell captive 9 93 74 72 Operating lease assets 4 6 5 Trade and other receivables 18 1 8 26 208 26 089 25 839 Current assets Inventory 10 729 10 550 10 598 Trade and other receivables 4 220 4 289 4 366 Cash and cash equivalents 5 713 4 951 5 328 Net investment in lease receivables 356 375 388 Right-of-return assets 24 23 24 Loans 15 – 13 Derivative financial instruments 9 – – 1 21 057 20 188 20 718 Non-current assets held for sale 12 122 25 250 Total assets 47 387 46 302 46 807 EQUITY AND LIABILITIES Equity Share capital 5 3 883 3 866 3 883 Treasury shares 6 (585) (496) (496) Retained earnings 6 830 (191) 7 301 Other reserves (2) (8) 6 Foreign currency translation reserve (393) (401) (397) Equity attributable to equity holders of the parent 9 733 2 770 10 297 Non-controlling interest 835 – 668 Total equity 10 568 2 770 10 965 Non-current liabilities Lease liabilities 15 930 16 551 16 379 Borrowings 650 4 500 850 Deferred tax liabilities 10 78 – – 16 658 21 051 17 229 Current liabilities Trade and other payables 16 705 16 235 15 036 Lease liabilities 2 687 2 546 2 741 Deferred revenue 527 477 300 Bank overdraft and overnight borrowings – 1 253 300 Borrowings – 1 493 – Current tax liabilities 134 354 140 Provisions 107 117 96 Derivative financial instruments 9 1 6 – 20 161 22 481 18 613 Total equity and liabilities 47 387 46 302 46 807 Number of ordinary shares in issue – thousands 5.1 745 657 745 657 745 657 Weighted average number of ordinary shares in issue – thousands 4.2 734 526 587 535 663 018 Diluted weighted average number of ordinary shares in issue – thousands 4.2 734 526 588 189 663 018 * Restated, refer to note 15. Group statement of financial position
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www.pnp.co.za8 Share capital Treasury shares Retained earnings Other reserves Foreign currency translation reserve Equity attributable to equity holders of the parent Non- controlling interest Total equity Unaudited Note Rm Rm Rm Rm Rm Rm Rm Rm At 25 February 2024* 6 (557) 646 1 (389) (293) – (293) Total comprehensive loss for the period – – (825) (8) (12) (845) – (845) Loss for the period – – (827) – – (827) – (827) Foreign currency translations – – – – (12) (12) – (12) Movement in cash flow hedge – – – (8) – (8) – (8) Retirement scheme asset remeasurements – – 2 – – 2 – 2 Other reserve movements – – – (1) – (1) – (1) Transactions with owners 3 860 61 (12) – – 3 909 – 3 909 Share issue – rights offer 3 860 – – – – 3 860 – 3 860 Proceeds on sale of rights attached to treasury shares, pursuant to rights offer 6 – 17 – – – 17 – 17 Net effect of settlement of employee share awards 6 – 44 (44) – – – – – Share-based payments – – 32 – – 32 – 32 Restated at 25 August 2024** 3 866 (496) (191) (8) (401) 2 770 – 2 770 Total comprehensive income for the period – – 91 7 4 102 85 187 Profit for the period – – 91 – – 91 85 176 Foreign currency translations – – – – 4 4 – 4 Movement in cash flow hedge – – – 7 – 7 – 7 Other reserve movements – – – 7 – 7 – 7 Transactions with owners 17 – 7 401 – – 7 418 583 8 001 Share issue costs 17 – – – – 17 – 17 Net proceeds from change of ownership interest in subsidiary – – 7 369 – – 7 369 576 7 945 Share-based payments – – 32 – – 32 7 39 At 2 March 2025 3 883 (496) 7 301 6 (397) 10 297 668 10 965 Total comprehensive loss for the period – – (492) (2) 4 (490) 173 (317) (Loss)/profit for the period – – (496) – – (496) 173 (323) Foreign currency translations – – – – 4 4 – 4 Movement in cash flow hedge – – – (2) – (2) – (2) Retirement scheme asset remeasurements – – 4 – – 4 – 4 Other reserve movements – – – (6) – (6) – (6) Transactions with owners – (89) 21 – – (68) (6) (74) Shares purchased during the period 6 – (101) – – – (101) – (101) Purchase of non-controlling interest# (39) (39) (21) (60) Net effect of settlement of employee share awards 6 – 12 (12) – – – – – Share-based payments – – 72 – – 72 15 87 At 31 August 2025 3 883 (585) 6 830 (2) (393) 9 733 835 10 568 * Restated, in accordance with restatements published in the audited Group annual financial statements for the 53 weeks ended 2 March 2025. ** Restated, refer to note 15. # Purchase of non-controlling interest shares by Boxer Retail Limited Group (“Boxer”) for Long Term Incentive Plan (“L TIP”). Group statement of changes in equity for the period ended
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Unaudited Group condensed interim financial statements for the 26 weeks ended 31 August 2025 9 Restated* Unaudited Unaudited Audited 26 weeks to 26 weeks to 53 weeks to 31 August 25 August 2 March 2025 2024 2025 Note Rm Rm Rm Cash flows from operating activities Trading profit 310 83 1 759 Adjusted for non-cash items 1 838 1 888 3 731 Depreciation of property, plant and equipment 729 719 1 436 Depreciation of right-of-use assets 1 130 1 102 2 253 Amortisation of intangible assets 61 57 127 Share-based payments 87 32 71 Profit on termination of leases** (139) (34) (178) Other lease adjustments** (9) – 34 Movement in operating lease assets 1 – 1 Movement in retirement scheme assets – (2) (6) Fair value and foreign exchange adjustments (22) 14 (7) Cash generated before movements in working capital 2 148 1 971 5 490 Movements in working capital 1 752 822 (583) Movements in trade and other payables, provisions and deferred revenue* 1 801 1 049 (229) Movements in inventory and right-of-return assets (34) (363) (386) Movements in trade and other receivables* (15) 136 32 Cash generated from trading activities 3 900 2 793 4 907 Funding interest received 187 178 350 Funding interest paid (46) (575) (900) Interest received on net investment in lease receivables 113 97 210 Interest paid on lease liabilities (955) (843) (1 681) Cash generated from operations 3 199 1 650 2 886 Tax paid (272) (184) (744) Cash generated from operating activities 2 927 1 466 2 142 Cash flows from investing activities Investment in intangible assets (47) (46) (164) Investment in property, plant and equipment (897) (571) (1 513) Purchase of operations 10 (81) (8) (48) Proceeds on disposal of intangible assets 9 – 13 Proceeds on disposal of property, plant and equipment 134 101 142 Principal net investment in lease receipts 184 198 377 Lease incentives received 68 47 116 Loans repaid 22 31 73 Loans advanced (5) (2) (59) Cash utilised in investing activities (613) (250) (1 063) Cash flows from financing activities Principal lease liability payments (1 263) (1 315) (2 679) Borrowings raised – 1 937 3 235 Repayment of borrowings (200) (2 211) (8 651) Purchase of shares (101) – – Proceeds for change in ownership interest as a result of Boxer IPO – – 7 945 Net proceeds on rights offer – 3 860 3 877 Proceeds on sale of rights attached to treasury shares, pursuant to rights offer – 17 17 Purchase of non-controlling interest shares by Boxer for L TIP (60) – – Cash (utilised)/generated from financing activities (1 624) 2 288 3 744 Net increase in cash and cash equivalents 690 3 504 4 823 Net cash and cash equivalents at beginning of period 5 028 204 204 Foreign currency translations (5) (10) 1 Net cash and cash equivalents at end of period 5 713 3 698 5 028 Consisting of: Cash and cash equivalents 5 713 4 951 5 328 Bank overdraft and overnight borrowings – (1 253) (300) * Restated, refer to note 15. ** In accordance with additional disclosures provided in the audited Group annual financial statements for the 53 weeks ended 2 March 2025, the disclosures for the current and previous interim reporting periods have been expanded. Group statement of cash flows for the period ended
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www.pnp.co.za10 1 Basis of preparation and accounting policies The Group condensed interim financial statements for the period ended 31 August 2025 are prepared in accordance with the requirements of the JSE Listings Requirements for condensed reports, and the requirements of the Companies Act, as applicable to summarised financial statements. The Listings Requirements require condensed reports to be prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS Accounting Standards), as issued by the International Accounting Standards Board, and the financial pronouncements, as issued by the Financial Reporting Standards Council and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, and to also, as a minimum, contain the information required by IAS 34 Interim Financial Reporting . The Group condensed interim financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the audited Group annual financial statements for the 53 weeks ended 2 M arch 2025. The accounting policies applied in the preparation of the Group condensed interim financial statements are in terms of IFRS Accounting Standards and are consistent with those applied in the annual financial statements for the 53 weeks ended 2 March 20 25, with the exception of the adoption of new, revised and amended accounting pronouncements as issued by the International Accounting Standards Board (IASB) which were effective for the Group from 2 March 2025. The new, revised and amended standards did not have a material impact on the Group condensed interim financial statements. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. In addition, decimal points have been removed from presentation during the current year, and as such the prior year numbers have been aligned to the current year rounding. These Group condensed interim financial statements have been prepared by the Finance Division under the supervision of the Chief Finance Officer, Lerena Olivier CA(SA), and have not been audited or reviewed by the Group’s external auditors, Ernst & Young Inc. Unaudited Unaudited Audited 26 weeks to 26 weeks to 53 weeks to 31 August 25 August 2 March 2025 2024 2025 Rm Rm Rm 2 Revenue Revenue from contracts with customers 60 251 57 424 121 448 Turnover 58 818 56 052 118 610 Franchise fee income 582 590 1 244 Commissions and other income 851 782 1 594 Operating lease income 56 53 111 Finance income 292 285 565 Bank balances and investments 155 137 271 Trade receivables and other 36 45 78 Net investment in lease receivables 101 103 216 60 599 57 762 122 124 3 Finance costs Lease liabilities 873 846 1 769 Borrowings and other 46 574 792 919 1 420 2 561 Notes to the financial information for the period ended 31 August 2025
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Unaudited Group condensed interim financial statements for the 26 weeks ended 31 August 2025 11 Notes to the financial information Unaudited Unaudited Audited 26 weeks to 26 weeks to 53 weeks to 31 August 25 August 2 March 2025 2024 2025 Cents per share Cents per share Cents per share 4 Basic, headline and diluted earnings per share Basic loss per share (67.53) (140.83) (111.01) Diluted loss per share (67.53) (140.67) (111.01) Headline loss per share (59.77) (136.60) (61.54) Diluted headline loss per share (59.77) (136.44) (61.54) Rm Rm Rm 4.1 Reconciliation between basic and headline earnings Loss for the period attributable to equity holders of the parent – basic loss for the period (496) (827) (736) Adjustments: 57 24 328 Net loss on disposal of assets 39 9 94 Tax effect of loss on disposal of assets (10) (2) (18) Loss from impairments of assets 45 22 294 Tax effect of loss from impairments of assets (11) (5) (38) Non-controlling interest (6) – (4) Headline loss for the period (439) (803) (408) 000’s 000’s 000’s 4.2 Number of ordinary shares Number of ordinary shares in issue 745 657 745 657 745 657 Weighted average number of ordinary shares in issue (excluding treasury shares) 734 526 587 535 663 018 Diluted weighted average number of ordinary shares in issue 734 526 588 189 663 018 Reconciliation of weighted average number of ordinary shares to diluted weighted average number of ordinary shares: Weighted average number of ordinary shares in issue (excluding treasury shares) 734 526 587 535 663 018 Dilutive effect of share awards – 654 – Diluted weighted average number of ordinary shares in issue 734 526 588 189 663 018 Any outstanding PIK shares , granted in terms of the Group’s R estricted Share Plan that have not yet met required performance hurdles, have no dilutive impact on the weighted average number of shares in issue.
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www.pnp.co.za12 Notes to the financial information Unaudited Unaudited Audited 26 weeks to 26 weeks to 53 weeks to 31 August 25 August 2 March 2025 2024 2025 Rm Rm Rm 5 Share capital 5.1 Ordinary share capital Issued 745 657 130 (2 March 2025: 745 657 130) (25 August 2024: 745 657 130) ordinary shares of no par value 3 883 3 866 3 883 000’s 000’s 000’s The number of shares in issue is made up as follows: Treasury shares (note 6) 13 273 9 945 9 945 Shares held outside the Group 732 384 735 712 735 712 Total shares in issue at end of period 745 657 745 657 745 657 Authorised no par value shares 828 500 10 000 000 828 500 The holders of ordinary shares are entitled to receive dividends as and when declared, and are entitled to one vote per share at meetings of the Company. Certain ordinary shares are stapled to B shares and are subject to restrictions upon disposal. Refer to note 5.2. The Company can issue new shares to settle the Group’s obligations under its employee share schemes, but issues in this regard are limited to 24 672 516 (2024: 24 672 516) shares. To date 15 743 000 (2024: 15 743 000) shares have been issued, resulting in 8 929 516 (2024: 8 929 516) shares remaining for this purpose. During the prior financial year, the Group concluded a rights offer as part of its recapitalisation plan. The rights offer resulted in changes to both authorised and issued share capital over the course of the prior financial year. For further detail, refer to the 2025 audited Group annual financial statements. Unaudited Unaudited Audited 26 weeks to 26 weeks to 53 weeks to 31 August 25 August 2 March 2025 2024 2025 Rm Rm Rm 5.2 B Share capital Issued 325 426 164 (2 March 2025: 325 426 164) (25 August 2024: 325 426 164) unlisted, non-convertible, non-participating, no par value B shares – – – 000’s 000’s 000’s Authorised unlisted, non-convertible, non-participating, no par value shares 361 500 5 300 000 361 500 The holders of B shares are entitled to the same voting rights as holders of ordinary shares, but are not entitled to any rights to distributions by the Company or any other economic benefits. Refer to note 5.1. B shares are stapled to certain ordinary shares, constituting a B-share ratio for every one stapled ordinary Share. B shares cannot be traded separately from stapled ordinary shares, and together are subject to restrictions upon disposal. During the prior financial year, the Group concluded a rights offer as part of its recapitalisation plan . As part of this process, B shareholders agreed to reduce the B share issue ratio from 1.98061 to 1.64254 B shares for every one stapled ordinary share. This resulted in the previous controlling shareholder ’s voting rights reducing from 52% to 49%.
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Unaudited Group condensed interim financial statements for the 26 weeks ended 31 August 2025 13 Unaudited Unaudited Audited 26 weeks to 26 weeks to 53 weeks to 31 August 25 August 2 March 2025 2024 2025 Rm Rm Rm 6 Treasury shares At beginning of period 496 557 557 Shares purchased during the period* 101 – – Settlement of employee share awards (12) (44) (44) Proceeds on sale of rights attached to treasury shares, pursuant to rights offer – (17) (17) At end of period 585 496 496 000’s 000’s 000’s The movement in the number of treasury shares held is as follows: At beginning of period 9 945 10 796 10 796 Shares purchased during the period* 3 822 – – Shares delivered to participants of share options scheme – (1) (1) Shares delivered to participants of Restricted Share Plan (494) (850) (850) At end of period 13 273 9 945 9 945 * During the current period, the Group purchased shares from the market for purposes of issuing awards under its Restricted Share Plan. Notes to the financial information
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www.pnp.co.za14 7 Operating segments* Operating segments are identified based on financial information regularly reviewed by the Chief Operating Decision Maker (CODM) of the Group, for performance assessments and resource allocations. The Group annually performs a detailed review of the executive, or group of executives, that could be considered the appropriate and relevant CODM of the Group. During the current and prior periods under review, the CODM of the Group consisted of the Group executive directors, which comprised of the Chief Executive Officer and Chief Finance Officer. Pick n Pay Boxer Group Reportable segments Rm Rm Rm Unaudited 26 weeks to 31 August 2025 Financial performance Revenue 37 845 22 754 60 599 Turnover 36 300 22 518 58 818 Cost of merchandise sold (30 168) (17 938) (48 106) Gross profit 6 132 4 580 10 712 Other income 1 296 193 1 489 Franchise fee income 582 – 582 Operating lease income 51 5 56 Commissions and other income 663 188 851 Trading expenses (8 049) (3 842) (11 891) Employee costs (3 320) (1 686) (5 006) Occupancy costs (1 050) (634) (1 684) Operations costs (2 050) (1 150) (3 200) Merchandise and administration costs (1 558) (372) (1 930) Expected credit loss allowance (71) – (71) Trading (loss)/profit** (621) 931 310 Finance income 249 43 292 Funding finance income 148 43 191 Leases finance income 101 – 101 Finance costs (645) (274) (919) Funding finance expense (1) (45) (46) Leases finance expense (644) (229) (873) (Loss)/profit before tax before capital items (1 017) 700 (317) Loss on capital items (64) (20) (84) Net loss on disposal of assets (24) (15) (39) Loss from impairments of assets (40) (5) (45) (Loss)/profit before tax (1 081) 680 (401) Included in (loss)/profit before tax is the following: Depreciation and amortisation (1 244) (676) (1 920) Net funding finance income/(expense) 147 (2) 145 Net leases finance expense (543) (229) (772) Financial position Total assets 32 927 14 460 47 387 Total liabilities 24 787 12 032 36 819 South Africa Rest of Africa Group Geographical information Rm Rm Rm Financial performance Turnover 56 988 1 830 58 818 Pick n Pay 34 788 1 512 36 300 Boxer 22 200 318 22 518 Franchise fee income 575 7 582 Operating lease income 56 – 56 Commissions and other income 846 5 851 Finance income 280 12 292 Revenue 58 745 1 854 60 599 Financial position Total non-current assets 25 948 382 26 330 * The structure of the operating segments note has been adjusted to allow for comparison to the Group statement of comprehensive income. The comparative structure has been amended accordingly. ** “Segmental trading loss/profit” is the reported measure used for evaluating the performance of the Group’s operating segments. This metric is equal to the Group’s reported “loss/profit before tax”, before net finance costs and capital items. Notes to the financial information
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Unaudited Group condensed interim financial statements for the 26 weeks ended 31 August 2025 15 Pick n Pay Boxer Group Reportable segments Rm Rm Rm Unaudited 26 weeks to 25 August 2024 Financial performance Revenue 37 760 20 002 57 762 Turnover 36 278 19 774 56 052 Cost of merchandise sold (30 278) (15 766) (46 044) Gross profit 6 000 4 008 10 008 Other income 1 262 163 1 425 Franchise fee income 590 – 590 Operating lease income 48 5 53 Commissions and other income 624 158 782 Trading expenses (7 980) (3 370) (11 350) Employee costs (3 214) (1 500) (4 714) Occupancy costs (1 177) (563) (1 740) Operations costs (2 038) (988) (3 026) Merchandise and administration costs (1 465) (319) (1 784) Expected credit loss allowance (86) – (86) Trading (loss)/profit* (718) 801 83 Finance income 220 65 285 Funding finance income 117 65 182 Leases finance income 103 – 103 Finance costs (1 226) (194) (1 420) Funding finance expense (568) (6) (574) Leases finance expense (658) (188) (846) (Loss)/profit before tax before capital items (1 724) 672 (1 052) Loss on capital items (30) (1) (31) Net loss on disposal of assets (8) (1) (9) Loss from impairments of assets (22) – (22) (Loss)/profit before tax (1 754) 671 (1 083) Included in (loss)/profit before tax is the following: Depreciation and amortisation (1 274) (604) (1 878) Net funding finance (expense)/income (451) 59 (392) Net leases finance expense (555) (188) (743) Restated** Restated** Pick n Pay Boxer Group Rm Rm Rm Financial position Total assets 34 793 11 509 46 302 Total liabilities 33 751 9 781 43 532 South Africa Rest of Africa Group Geographical information Rm Rm Rm Financial performance Turnover 54 144 1 908 56 052 Pick n Pay 34 665 1 613 36 278 Boxer 19 479 295 19 774 Franchise fee income 582 8 590 Operating lease income 52 1 53 Commissions and other income 782 – 782 Finance income 270 15 285 Revenue 55 830 1 932 57 762 Restated** Restated** South Africa Rest of Africa Group Rm Rm Rm Financial position Total non-current assets 25 881 233 26 114 * “Segmental trading loss/profit” is the reported measure used for evaluating the performance of the Group’s operating segments. This metric is equal to the Group’s reported “loss/profit before tax”, before net finance costs and capital items. ** Restated, refer to note 15. 7 Operating segments continued Notes to the financial information
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www.pnp.co.za16 8 Related party transactions and balances During the period under review, in the ordinary course of business, certain companies within the Group entered into transactions with each other. These intragroup transactions and related balances are eliminated on consolidation, including R346 million (2024: R225 million) owing to Boxer as a result of a shared payments system infrastructure, whereby payments are received by the Group and fully settled to Boxer the following day. Intragroup transactions are similar to those in the prior year and related parties remain unchanged from those reported at 2 March 2025, except for the NTS Holdings Proprietary Limited Group which became a wholly-owned subsidiary during the period under review (refer to note 10). For further information, refer to note 31 of the 2025 audited Group annual financial statements and note 8 of the 2025 audited Company annual financial statements. 9 Financial instruments All financial instruments held by the Group are measured at amortised cost, with the exception of financial instruments at fair value through profit or loss and derivatives designated as hedging instruments, as set out below: Unaudited Unaudited Audited 26 weeks to 26 weeks to 53 weeks to 31 August 25 August 2 March 2025 2024 2025 Rm Rm Rm Financial instruments at fair value through profit or loss Investment in insurance cell captive – Level 2 93 74 72 Derivative financial instruments (designated as hedging instruments) Forward exchange contract (liabilities)/assets – Level 2 (1) (6) 1 The fair value of financial instruments that are not traded in an active market is determined using valuation techniques consistent with those disclosed in the 2025 audited Group annual financial statements. These valuation techniques maximise the use of observable market data, where it is available, and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. The carrying value of all other financial instruments held at amortised cost approximate their fair value. There have been no transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy during the period. 10 Purchase of operations 10.1 Acquisition of stores During the period under review, as part of the Group’s Store Estate Reset programme, the Group acquired three franchise stores (25 August 2024: one ) which were not individually material. These acquisitions had no significant impact on the Group’s results. Any goodwill arising from these acquisitions represents the value creation that the Group expects to realise in the future. Unaudited Unaudited Audited 26 weeks to 26 weeks to 53 weeks to 31 August 25 August 2 March 2025 2024 2025 Rm Rm Rm The net assets arising from acquisitions were as follows: Identifiable net assets Property, plant and equipment 8 7 28 Inventory 34 – 19 Total identifiable net assets at fair value 42 7 47 Goodwill Purchase price of acquisitions at fair value 137 8 67 Less: total identifiable net assets at fair value (42) (7) (47) Goodwill acquired 95 1 20 Net cash paid in respect of acquisitions Purchase price of acquisitions at fair value 137 8 67 Less: amounts net settled against trade and other receivables (69) – (19) Net cash paid 68 8 48 Notes to the financial information
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Unaudited Group condensed interim financial statements for the 26 weeks ended 31 August 2025 17 10 Purchase of operations continued 10.2 Purchase of Botswana franchisees On 28 July 2025 the Group acquired the Pick n Pay franchise operations in Botswana through the purchase of 100% of the share capital of NTS Holdings Proprietary Limited for a cash consideration of R36 million. The Botswana franchise operations consisted of 13 supermarkets and 6 liquor stores, the majority of which are situated in southern Botswana. The goodwill arising from this acquisition represents the value creation that the Group expects to realise in the future. As a former franchisee of the Group, the NTS Holdings Proprietary Limited Group (“NTS”) was party to contractual relationships with the Group prior to its acquisition. These contractual relationships were: • Leases where the Group holds head leases on property with landlords and NTS subleases these properties from the Group, and • Trade payables owing to the Group, relating to inventory purchases from the Group when NTS was a franchisee. In accordance with IFRS 3 Business Combinations , these pre-existing contractual relationships were treated as effectively settled at the acquisition date. The effective settlement amount of the leasing arrangements was measured a t the present value of the remaining lease payments (as defined in IFRS 16 Leases ) as if the acquired leases were new leases at the acquisition date. The effective settlement amount of the trade payables was determined using a discounted cash flow methodology. The effective settlement of the se pre-existing relationships did not result in any gain or loss for the Group. Any reasonable change to assumptions in the valuations does not have a significant impact on the effective settlement amounts. NTS contributed revenue of R70 million and profit for the period of R1 million to the Group statement of comprehensive income for the period under review. Had the acquisition of NTS been at the beginning of the reporting period, Group revenue would have been R60.9 bill ion and the Group lo ss for the period wo uld have remained R0.3 billion . Unaudited 26 weeks to 31 August 2025 Rm The net assets arising from the acquisition were as follows: Identifiable net assets at acquisition date Property, plant and equipment 13 Right-of-use assets 114 Inventory 69 Trade and other receivables 6 Cash and cash equivalents 23 Trade and other payables (106) Deferred tax (78) Total identifiable net assets at fair value 41 Goodwill Consideration for acquisitions at fair value 236 Cash purchase price 36 Effective settlement of pre-existing arrangements 200 Less: total identifiable net assets at fair value (41) Goodwill acquired 195 Net cash paid in respect of acquisitions Cash purchase price 36 Less: cash acquired (23) Net cash paid 13 10.3 Goodwill During the period under review, the Group’s carrying value of Goodwill increased with a cost of R290 million (25 August 2024: R1 million), as a result of franchise store purchases, and decreased with a value of R5 million (25 August 2024: nil) for impairment losses recognised. Notes to the financial information
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www.pnp.co.za18 11 Commitments Unaudited 26 weeks to 31 August 2025 Rm Unaudited 26 weeks to 25 August 2024 Rm Audited 53 weeks to 2 March 2025 Rm Authorised capital expenditure Contracted for 570 700 535 Not contracted for 600 600 1 715 Total commitments 1 170 1 300 2 250 12 Non-current assets held for sale During the period, the Group sold a property, previously classified as a non-current asset held for sale as at 2 March 2025 with a carrying value of R128 million. A profit on disposal of R2 million was recorded in the capital items section of the statement of comprehensive income. 13 Subsequent events Subsequent to the reporting date, the Group’s Boxer segmen t repaid R450 million of borrowings. 14 Contingent liabilities Amounts arising in the ordinary course of business relating to uncertain tax positions, from which it is anticipated that no material liabilities are probable, amounts to R135 million (2 March 2025: R114 million) (2 5 August 2024: nil). The contingent liability is primarily a result of additional tax assessments received from certain tax authorities where the Group trades, and the increase is a result of foreign exchange rate movements. Management has assessed the merits of each of these cases in close collaboration with the Group’s external advisors and remain confident that those assessments leading to probable additional payments have been adequately provided for. Where these payments are considered not probable, these are disclosed as contingent liabilities. Notes to the financial information
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Unaudited Group condensed interim financial statements for the 26 weeks ended 31 August 2025 19 15 Correction of prior period errors In line with the restatements presented in the audited Group annual financial statements for the 53 weeks ended 2 March 2025, the Group condensed interim financial statements have also been restated for the following: IFRS 16: Leases As part of the financial statement close process for the 2025 financial year, the Group undertook a review of lease balances, income, expenses and cash flows. This process revealed errors relating to the measurement of a number of leases within the Pick n Pay segment. The number of leases were minimal in comparison to the overall lease portfolio of the Group. Supplier payable and receivable balances In addition, during the financial statement close process for the 2025 financial year, it was identified that a small number of suppliers in the Pick n Pay segment, who are also debtors of the Group, had their receivable and payable balances offset on the statement of financial position despite the Group not intending to net settle. In terms of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors , the errors were corrected retrospectively with comparative periods being restated. The effect of the restatements on the 26 weeks to 25 August 202 4 is as follows: Previously Effect of 26 weeks to 25 August 2024 reported change Restated Group statement of financial position Rm Rm Rm Right-of-use assets 11 049 106 11 155 Net investment in lease receivables (non-current) 1 889 59 1 948 Deferred tax assets 2 654 32 2 686 Trade and other receivables (current) 4 224 65 4 289 Net investment in lease receivables (current) 345 30 375 Retained earnings* (81) (110) (191) Lease liabilities (non-current) 16 148 403 16 551 Trade and other payables 16 170 65 16 235 Lease liabilities (current) 2 612 (66) 2 546 Group statement of cash flows Rm Rm Rm Movements in trade and other payables, provisions and deferred revenue 1 154 (105) 1 049 Movements in trade and other receivables 31 105 136 * The change to retained earnings is the result of the restatement to the statement of financial position for the 52 weeks ended 25 February 2024 as published in note 38 of the 2025 Group annual financial statements. This restatement had no impact on the Group’s statement of comprehensive income for the 26 weeks to 25 August 2024. Notes to the financial information
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www.pnp.co.za20 Pro forma financial information Certain financial information presented in the Group condensed interim financial statements constitutes pro forma financial information in terms of the JSE Listings Requirements. The pro forma financial information has been prepared to illustrate the additional financial measures regularly used by the management of the Group to assess operating performance and financial position, and thereby enhances an investor’s understanding of the Group’s results of operations and financial performance. The pro forma financial information is prepared for illustrative purposes only and because of its nature, may not fairly present the Group’s financial position, changes in equity, results of operations or cash flows. The directors of Pick n Pay Stores Limited are responsible for the pro forma financial information, which has been presented in accordance with the JSE Listings Requirements. The pro forma financial information has not been audited by the Group’s external auditors. 1 Net cash/debt (excluding lease liabilities) and net cash/debt (including lease liabilities) Net cash/debt (excluding lease liabilities) and net cash/debt (including lease liabilities) for the Group on a historical basis for each of the periods indicated is calculated as presented in the following table. 26 weeks to 31 August 2025 26 weeks to 25 August 2024 53 weeks to 2 March 2025 Pick n Pay* Boxer* Group** Pick n Pay* Boxer* Group** Pick n Pay* Boxer* Group** Rm Rm Rm Rm Rm Rm Rm Rm Rm Cash and cash equivalents 4 283 1 430 5 713 4 732 219 4 951 4 862 466 5 328 Intragroup receivable/(payable) (346) 346 – (225) 225 – (204) 204 – Borrowings – (650) (650) (5 993) – (5 993) – (850) (850) Bank overdraft and overnight borrowings – – – (1 253) – (1 253) (300) – (300) Net cash/(debt) excluding lease liabilities 3 937 1 126 5 063 (2 739) 444 (2 295) 4 358 (180) 4 178 Non-current lease liabilities (11 604) (4 326) (15 930) (12 731) (3 820) (16 551) (12 229) (4 150) (16 379) Current lease liabilities (2 067) (620) (2 687) (1 973) (573) (2 546) (2 094) (647) (2 741) Net debt (including lease liabilities) (9 734) (3 820) (13 554) (17 443) (3 949) (21 392) (9 965) (4 977) (14 942) * Information has been extracted, without adjustment, from the Group’s accounting records. ** Information has been extracted, without adjustment, from the Group condensed interim financial statements of Pick n Pay Stores Limited for the 26 weeks ended 31 August 2025. Appendix 1
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Unaudited Group condensed interim financial statements for the 26 weeks ended 31 August 2025 21 Appendix 1 2 EBITDA and EBITDA (pre-IFRS 16) The following presents a reconciliation from (loss)/ profit for the period (computed in accordance with IFRS) to EBITDA and EBITDA (pre -IFRS 16) for the Group on a historical basis for each of the periods indicated. 26 weeks to 31 August 2025 26 weeks to 25 August 2024 # 53 weeks to 2 March 2025 Pick n Pay* Boxer* Group** Pick n Pay* Boxer* Group** Pick n Pay* Boxer* Group** Rm Rm Rm Rm Rm Rm Rm Rm Rm (Loss)/profit for the period (825) 502 (323) (1 310) 483 (827) (2 034) 1 383 (651) Tax (256) 178 (78) (444) 188 (256) (499) 525 26 Loss from impairment of assets 40 5 45 22 – 22 274 20 294 Net loss on disposal of assets 24 15 39 8 1 9 81 13 94 Finance costs 645 274 919 1 226 194 1 420 2 103 458 2 561 Finance income (249) (43) (292) (220) (65) (285) (474) (91) (565) Trading (loss)/profit (621) 931 310 (718) 801 83 (549) 2 308 1 759 Depreciation on property, plant and equipment 402 327 729 432 287 719 845 591 1 436 Amortisation on intangible assets 52 9 61 49 8 57 113 14 127 Depreciation on right-of-use assets 790 340 1 130 793 309 1 102 1 600 653 2 253 Finance income – trade and other receivables 36 – 36 45 – 45 78 – 78 EBITDA 659 1 607 2 266 601 1 405 2 006 2 087 3 566 5 653 Profit on termination of leases (126) (13) (139) (20) (14) (34) (136) (42) (178) Lease incentives received 51 17 68 26 21 47 42 74 116 Principal lease liability payments (1 009) (254) (1 263) (1 039) (276) (1 315) (2 066) (613) (2 679) Interest paid on lease liabilities (681) (274) (955) (655) (188) (843) (1 336) (345) (1 681) Principal net investment in lease receipts 184 – 184 198 – 198 377 – 377 Interest received on net investment in lease receivables 113 – 113 97 – 97 210 – 210 EBITDA (pre-IFRS 16) (809) 1 083 274 (792) 948 156 (822) 2 640 1 818 3 Trading profit after lease interest The following presents a reconciliation from trading (loss)/ profit (computed in accordance with section 2 above) to trading profit after lease interest for the Group on a historical basis for each of the periods indicated. 26 weeks to 31 August 2025 26 weeks to 25 August 2024 # 53 weeks to 2 March 2025 Pick n Pay* Boxer* Group** Pick n Pay* Boxer* Group** Pick n Pay* Boxer* Group** Rm Rm Rm Rm Rm Rm Rm Rm Rm Trading (loss)/profit (621) 931 310 (718) 801 83 (549) 2 308 1 759 Leases finance expense (644) (229) (873) (658) (188) (846) (1 357) (412) (1 769) Leases finance income 101 – 101 103 – 103 216 – 216 Trading (loss)/profit after lease interest (1 164) 702 (462) (1 273) 613 (660) (1 690) 1 896 206 * Information has been extracted, without adjustment, from the Group’s accounting records. ** Information has been extracted, without adjustment, from the Group condensed interim financial statements of Pick n Pay Stores Limited for the 26 weeks ended 31 August 2025. # The information presented for the 26 weeks to 25 August 2024 is equal to the Boxer operating segment of the Group. As detailed in appendix 3 of the Group interim condensed financial statements for the 26 weeks to 25 August 2024, the difference of R8 million between the trading profit of Boxer operating segment and Boxer condensed interim financial statements is the result of Group consolidation entries. For the 53 weeks ended 2 March 2025 and the current reporting period, there is no difference between trading profit of the Boxer operating segment of the Group and the trading profit of the Boxer Retail Limited Group.
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www.pnp.co.za22 Additional information Additional information may not represent a defined term under IFRS Accounting Standards and, as a result, it may not be comparable with similarly titled measures reported by other companies. Additional information is the responsibility of the Board of directors of the Group, is presented for illustrative purposes only and has not been reviewed nor reported on by the Group’s external auditors. 1 Like-for-like turnover and expense growth comparisons Like-for-like (“LfL ”) turnover growth comparisons relate to stores that have been open for at least 12 months, removing the impact of store openings, closures and conversions during the current and previous reporting period, as well as the impact of the wholesale sites closure in the current and previous reporting period. LfL turnover on new or closed adjacent liquor stores inherits the LfL indicator of the store that it is attached to, as this is the manner in which the Group manages its store base. This is not the case for new or closed stand-alone liquor and clothing stores. LfL expense growth comparisons remove the impact of store openings, closures and conversions , and the movement in the ECL allowance, in the current and previous reporting periods. 2 Forward looking information These Group condensed interim financial statements contain certain forward looking statements related to the Group’s possible future actions, long -term strategy, performance, liquidity position and financial position which, although based on assumptions and/or estimates that the Group considers reasonable, are subject to risks and uncertainties which could cause actual events or conditions to differ materially from those expressed or implied by the forward looking statements. All forward looking statements are solely based on the views and considerations of the Board, and in particular, as at the date hereof. The Group does not undertake to update or revise any of these forward looking statements publicly, whether to reflect new information, future events or otherwise. These forward looking statements have not been reviewed or reported on by the Group’s external auditors. Appendix 2
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23Unaudited Group condensed interim financial statements for the 26 weeks ended 31 August 2025
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www.pnp.co.za24 Zambia eSwatini Botswana Lesotho South Africa Zimbabwe Overview of store estate Pick n Pay Boxer TM Owned Franchise Owned Associate Total Country: South Africa 942 606 537 – 2 085 eSwatini – 21 10 31 Zambia 23 – – – 23 Botswana 19 – – – 19 Lesotho – 4 – – 4 Zimbabwe – – – 76 76 984 631 547 76 2 238 Formats: Supermarkets1 311 412 327 62 1 112 Clothing 406 18 – – 424 Liquor 267 201 189 14 671 Build – – 31 – 31 984 631 547 76 2 238 Company-owned stores Franchise stores Business investment Geographic footprint South African store formats Supermarkets1 999 Clothing 421 Liquor 634 Build 31 Total South African store s 2 085 1 Supermarkets includes Hypermarkets.
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Unaudited Group condensed interim financial statements for the 26 weeks ended 31 August 2025 25 2 March 2025 Opened Closed Converted openings Converted closures 31 August 2025 Pick n Pay Company-owned Hypermarkets 21 – – 1 – 22 Supermarkets 287 1 (10) 16 (5) 289 Clothing 396 14 (4) – – 406 Liquor 267 3 (7) 8 (4) 267 Total company-owned 971 18 (21) 25 (9) 984 Franchise Supermarkets 260 1 (28) 4 (16) 221 Market 7 – – – – 7 Express 188 1 (5) – – 184 Clothing 19 – (1) – – 18 Liquor 223 4 (22) 4 (8) 201 Total franchise 697 6 (56) 8 (24) 631 Boxer Company-owned Supermarkets 320 9 (2) – – 327 Liquor 175 15 (1) – – 189 Build 30 1 – – – 31 Total company-owned 525 25 (3) – – 547 TM Supermarkets Associate 74 2 – – – 76 Total Group stores 2 267 51 (80) 33 (33) 2 238 African footprint - included in total stores above 187 2 (36) 19 (19) 153 Pick n Pay company-owned 23 – – 19 – 42 Boxer company-owned 10 – – – – 10 Pick n Pay franchise 80 – (36) – (19) 25 TM Supermarkets – associate 74 2 – – – 76 African footprint - by country 187 2 (36) – – 153 Botswana 19 – – – – 19 Lesotho 4 – – – – 4 Namibia 36 – (36) – – – eSwatini 31 – – – – 31 Zambia 23 – – – – 23 Zimbabwe 74 2 – – – 76 Number of stores
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www.pnp.co.za26 Pick n Pay Stores Limited Registration number: 1968/008034/06 JSE and A2X share code: PIK ISIN: ZAE000005443 Board of directors Executive Sean Summers (CEO) Lerena Olivier (CFO) Independent non-executive James Formby (Chair)1 Haroon Bhorat Aboubakar Jakoet Audrey Mothupi-Palmstierna Annamarie van der Merwe Pooven Viranna2 Non-executive Gareth Ackerman 1 Jonathan Ackerman Suzanne Ackerman Registered office Pick n Pay Office Park 101 Rosmead Avenue Kenilworth Cape Town 7708 Tel: +27 21 658 1000 Fax: +27 (0)86 675 1475 Postal address PO Box 23087 Claremont Cape Town 7735 Registrar Computershare Investor Services Proprietary Limited Rosebank Towers 15 Biermann Avenue Rosebank 2196 Tel: +27 11 370 5000 Postal address Private Bag X9000 Saxonwold 2132 JSE Limited sponsor Rand Merchant Bank (a division of FirstRand Bank Limited) 1 Merchant Place Cnr Fredman Drive and Rivonia Road Sandton 2196 Corporate information Auditors Ernst & Young Inc. Principal bankers Absa Limited Rand Merchant Bank (a division of FirstRand Bank Limited) Corporate advisors Rand Merchant Bank (a division of FirstRand Bank Limited) Company Secretary Vaughan Pierce Email address: CompanySecretary@pnp.co.za Promotion of access to information act InformationOfficer@pnp.co.za Investor relations Stephen Carrott Email address: StephenCarrott@pnp.co.za Pick n Pay Customer website: www.pnp.co.za Clothing website: www.picknpayclothing.co.za Pick n Pay Investor Relations: www.picknpayinvestor.co.za Tel: +27 860 30 30 30 Email address: customercare@pnp.co.za Boxer Customer website: www.boxer.co.za Boxer investor relations: www.boxerinvestor.co.za Tel: +27 860 02 69 37 Email address: customercare@boxer.co.za www.pnp.co.za | www.pnphome.co.za | www.picknpayclothing.co.za Engage with us on 1 Gareth Ackerman retired as Chairman of Pick n Pay effective 5 August 2025. James Formby was appointed as Chairman on that date. 2 Pooven Viranna was appointed as an independent non-executive director effective on 1 June 2025. David Friedland retired as independent non-executive director effective 5 August 2025.
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Pick n Pay Online www.pnp.co.za | www.pnphome.co.za | www.picknpayclothing.co.za Engage with us on