South African retailer Pick n Pay Stores Ltd has reported a 4.8% increase in group sales in the first four and a half months of its 2024 fiscal year.
For the 20 week period from 27 February 2023 to 16 July 2023, South Africa sales growth stood at 4.4% (+0.9% like-for-like), while the group’s Rest of Africa segment sales increased 15.9% (+12.0% on a constant currency basis).
Pick n Pay South Africa
Sales at its Pick n Pay stores in South Africa were down 0.3% however (0.0% like-for-like) as a result of reduced promotional activity, as the business had to manage 'the impact of extraordinary operating cost pressures caused by elevated load shedding'.
At group level, clothing sales in standalone stores were up 10.9%, group liquor sales were up 9.8% and online sales growth for the period was 75.3%, the group said.
'Continued strong sales momentum in Boxer and online was particularly pleasing, while the group also managed to make firm strides in key Project Future people initiatives to drive efficiencies within Pick n Pay supermarkets, ' it said.
'Sales performance within Pick n Pay SA was muted as the group strove to contain the margin impact of load shedding costs.'
Read More: South Africa's Pick n Pay Hit By Energy, Store Revamp Costs
Earnings Per Share
Despite the strong start, Pick n Pay has yet to ascertain the exact anticipated range for its earnings per share (EPS), headline earnings per share (HEPS), and pro forma headline earnings per share for the first half of FY24, it noted.
In a bid to optimise its operations and boost profitability, Pick n Pay anticipates achieving approximately R300 million (€14.95 million) in annualised ongoing cost savings.
As part of its strategic initiatives, Pick n Pay expects to incur a restructuring charge of around R250 million (€12.46 million) in the first half of FY24.
