South Africa’s prominent grocery retailer Pick n Pay has reported a significant reduction in its full-year loss before tax and capital items, as it implements a multi-year recovery programme aimed at restoring financial stability. The company, listed on the Johannesburg Stock Exchange, has forecast breaking even by the 2028 financial year.
For the 53 weeks ended 2 March 2025, Pick n Pay reported a loss before tax and capital items of 237 million rand (approximately $13.3 million), a notable improvement from the 1.4 billion rand loss recorded in the preceding financial year. This development highlights the initial traction of the retailer’s recalibrated recovery efforts under the leadership of CEO Sean Summers, who resumed the role in October 2023.
In a statement accompanying the results, Summers remarked, “When I returned in October 2023, I stated that the recovery of Pick n Pay would be a multi-year process and that things would get worse before they got better. It is our sense that we see this unfortunate chapter now bottoming out, and we have recalibrated our recovery programme to break even in financial year 2028.”
The company’s trading loss in its core Pick n Pay operations narrowed by 1 billion rand, declining to 549 million rand. This improvement was supported by disciplined cost management and a more favourable interest expense environment. Net interest paid was reduced by 27.3%, attributed to the initial benefits of the group’s recapitalisation initiative, which has begun easing debt servicing obligations.
Group turnover rose by 5.6% year-on-year, reaching 118.6 billion rand. This growth was primarily driven by a 13.2% increase in revenue from Boxer, Pick n Pay’s discount grocery chain, which was spun off and listed separately in 2024. Meanwhile, the traditional Pick n Pay banner recorded a modest 1.9% growth in turnover. Nevertheless, the brand returned to a trading profit in the second half of the financial year, indicating a potential inflection point in its operating performance.
These results reflect a complex but methodical recovery in progress, following periods of underperformance and market share loss in an increasingly competitive retail environment. The company’s public declaration of a 2028 break-even target adds a degree of transparency and accountability to its strategy, signalling its long-term commitment to regaining investor confidence and retail prominence.
As of the reporting date, the rand traded at approximately 17.82 to the US dollar. All financial figures have been verified in accordance with audited financial disclosures and statements released by Pick n Pay on 26 May 2025.
