Pick N Pay Stores Limited · JSE:PIK
Pick N Pay Stores — H1 FY26 Earnings Presentation
37 slides from Pick N Pay Stores's earnings presentation, Oct 27, 2025
Slide 1: H1 FY26 Results
H1 FY26 Results 26 weeks ended 31 August 2025 1
Slide 2: H1 FY26 Results
H1 FY26 Results 26 weeks ended 31 August 2025 Introduction Sean Summers Results Overview Lerena Olivier Strategic Update Sean Summers 2
Slide 3: Introduction
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
Slide 4: H1 FY26 Results
H1 FY26 Results 26 weeks ended 31 August 2025 Introduction Sean Summers Results Overview Lerena Olivier Strategic Update Sean Summers 4
Slide 5: Group Key Metrics
GROUP KEY METRICS Turnover GP margin Total expenses Trading profit R58.8bn 18.2% 4.8% R0.3bn 4.9% ( LfL 4.7%) 30bps growth R0.2bn Loss before tax EBITDA* Headline loss Net cash & capital items -R0.3bn R0.3bn -R0.4bn R5.1bn improved R0.7bn R0.1bn improved 45.3% R0.9bn since Feb 25 * EBITDA (pre-IFRS1
Slide 6: Turnover Growth by Segment
TURNOVER GROWTH BY SEGMENT LfL* Turnover (Rbn) H1 FY26 H1 FY25 % change % change Pick n Pay 36.3 36.3 0.1 4.4 • Pick n Pay SA Supermarkets LfL sales acceleration South Africa 34.8 34.7 0.4 4.3 Rest of Africa 1.5 1.6 (6.3) • Company-owned LfL +4.8% (LY +3.1%) Boxer 22.5 19.8 13.9 5.3 • Franchise LfL
Slide 7: Group Trading Profit Segmentation
GROUP TRADING PROFIT SEGMENTATION H1 FY26 H1 FY25 Rbn Group Pick n Pay Boxer^ Group 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 (
Slide 8: Boxer Key Metrics
BOXER KEY METRICS Turnover GP margin Trading profit R22.5bn 20.3% R0.9bn 13.9% (LfL 5.3%) in line with LY 16.2% Trading margin EBITDA* Headline earnings 4.1% R1.1bn R0.5bn in line with LY 14.2% 5.3% As consolidated by the PIK Group, Boxer 65.6% owned since November 2024 * EBITDA (pre-IFRS16): Refer
Slide 9: Pick n Pay Key Metrics
PICK N PAY KEY METRICS Turnover GP margin Trading loss R36.3bn 16.9% -R0.6bn 0.1% ( LfL 4.4%) 40bps improved 13.5% Trading loss after Loss before tax EBITDA* leases* & capital items -R1.2bn -R0.8bn -R1.0bn improved R0.1bn in line with LY improved R0.7bn * Trading loss after leases and EBITDA (pre-IF
Slide 10: Pick n Pay Profit Momentum
PICK N PAY PROFIT MOMENTUM Loss before tax & capital items (Rbn) • Meaningful improvement to profitability H1 FY24 H2 FY24 H1 FY25 H2 FY25 H1 FY26 • Loss before tax and capital items R1bn (LY R1.7bn) • Year-on-year improvement R707m -0.5 • FY25 Recapitalisation delivered interest -1.0 benefit R598m
Slide 11: Pick n Pay Trading Result Overview
PICK N PAY TRADING RESULT OVERVIEW Rbn H1 FY26 H1 FY25 % change • Trading loss reduced to R621m Turnover 36.3 36.3 0.1 • Trading margin improved +30bps Gross profit 6.1 6.0 2.2 • Improved GP margin +40bps Other income 1.3 1.3 2.7 • Expenses as a % of turnover +20bps Trading expenses (8.0) (8.0) 0.9
Slide 12: Gross Profit Margin Analysis
GROSS PROFIT MARGIN ANALYSIS Margin Rbn H1 FY26 % change Margin % % change Pick n Pay 6.1 2.2 16.9 40bps • Pick n Pay GP margin +40bps to 16.9% Boxer 4.6 14.3 20.3 Flat • Price competitive Group 10.7 7.0 18.2 30bps • Improved customer offer Pick n Pay gross profit margin % • Investment in franchise
Slide 13: Trading Expenses
TRADING EXPENSES Group (Rbn) H1 FY26 H1 FY25 % change • Pick n Pay LfL expenses driven by investment to Pick n Pay 8.0 8.0 0.9 build a future-fit business Boxer^ 3.8 3.4 14.0 • Enhanced in-store customer experience Total 11.9 11.4 4.8 - Focused staff training LfL* - Selective hiring of key skills Pi
Slide 14: Pick n Pay Net Finance Costs
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 conclus
Slide 15: Group Earnings Per Share
GROUP EARNINGS PER SHARE H1 FY26 H1 FY25 % change Headline loss (Rm) (439) (803) 45.3 • Significant improvement in HEPS +56.2% HEPS (cents) (59.77) (136.60) 56.2 EPS (cents) (67.53) (140.83) 52.0 • Net funding interest benefit R537m WANOS* (millions) 734.5 587.5 25.0 • 25% increase in WANOS from PIK
Slide 16: Pick n Pay Free Cash Flow Profile
PICK N PAY FREE CASH FLOW PROFILE Cash generation and utilisation (Rbn) 4.3 -0.8 0.7 -0.4 4.0 -0.1 3.9 0.1 Operational Free Cash Flow -R0.3bn FY25 Cash flow Net Working Net capex^ Net cash Share H1 FY26 Net cash from interest capital after purchases Net cash opening operations* received movement ope
Slide 17: Working Capital Management
WORKING CAPITAL MANAGEMENT Net working capital movement (Rbn) H1 FY26 H1 FY25 • Group working capital liquidity release R1.7bn Pick n Pay 0.7 0.6 • Boxer R1.0bn, Pick n Pay R0.7bn Boxer^ 1.0 0.2 Group liquidity release 1.7 0.8 • Cyclical timing between H1 / H2 • Some period-end cut-off benefit Pick
Slide 18: Capex Investment
CAPEX INVESTMENT Net capital investment* (Rbn) • H1 FY26 Group gross capex R1.0bn R2.1bn (R0.9bn net of disposal proceeds) R1.5bn R0.9bn • Boxer and Clothing aligned to expansion R0.9bn R0.5bn R0.1bn • Measured Pick n Pay investment R0.6bn R0.3bn R0.1bn • Focus on customer facing strategies R0.2bn R
Slide 19: Net Funding
NET FUNDING Aug Feb Aug Rm 2025 2025 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 (R1.3
Slide 20: H1 FY26 Results
H1 FY26 Results 26 weeks ended 31 August 2025 Introduction Sean Summers Results Overview Lerena Olivier Strategic Update Sean Summers 20
Slide 21: Strategic Update
STRATEGIC UPDATE • 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-f
Slide 22: Strengthening Our Customer Offer
STRENGTHENING OUR CUSTOMER OFFER RANGE QUALITY VALUE SERVICE • Extended ranges across key • Ongoing focus to grow and • Maintaining selling price • Recruiting to ensure key categories improve our Fresh offer inflation below CPI Food positions filled in stores • Strengthened our Private • Fresh progr
Slide 23: Our Focus on Fresh – The Virtuous Circle
OUR FOCUS ON FRESH – THE VIRTUOUS CIRCLE 1 2 An improved ...with well offer and trained service sharper range... area staff ...and less ...which drives waste and higher sales better margin and growth 4 3 23
Slide 24: Ongoing Improvement in Online
ONGOING IMPROVEMENT IN ONLINE • Successful migration to NEW asap! Choose your Full power of preferred store Smart Shopper grocery on-demand app • Seamless transition and smoother shopping experience - enhancing value for customers Broad range to shop Delivered ASAP! • Strong total on-demand* growth
Slide 25: Franchise – A Strengthening Partnership
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
Slide 26: Our Hypermarket Assets
OUR HYPERMARKET ASSETS • 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
Slide 27: Acceleration in Like-for-Like Sales
ACCELERATION IN LIKE-FOR-LIKE SALES • 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 partner
Slide 28: Establishing a Future-Fit Business
ESTABLISHING A FUTURE-FIT BUSINESS Significant progress across focus areas to establish a sustainable future-fit business: Shortage (incl. waste) Initiatives delivering tangible improvements – more planned Support Offices Rightsizing well underway – workflow automation a priority Working Capital Not
Slide 29: Store Estate Reset Nearing Completion
STORE ESTATE RESET NEARING COMPLETION Loss-making stores addressed through Store Estate Reset • We have successfully executed on our store estate reset plan 101 H1 FY26: 14 27 • 65 loss-making company-owned H2 FY26: 11 stores expected to have converted or 9 closed by the end of FY26 25 • This, toget
Slide 30: Strategic Supply Chain Partnership
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
Slide 31: Digital Transformation – Fueling the Future
DIGITAL TRANSFORMATION – FUELING THE FUTURE Data and • New all-in-one Data Insights Platform Retail Media • GIG Retail appointed as new launching in November partner to fast-track growth and Analytics capabilities • PnP Cloud Data Warehouse powering AI and advanced analytics • Strong Retail Media in
Slide 32: Recent Awards - Affirming Our Progress
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
Slide 33: Clothing Winning More Customers
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 manufac
Slide 34: Boxer H1 FY26 Highlights
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 -
Slide 35: Supporting Our Communities
SUPPORTING OUR COMMUNITIES Feed the Nation Schools Club Disaster Relief Rapid response with Addressing hunger Free educational food and essentials in and food insecurity materials reaching partnership with for vulnerable 2.3 million learners Disaster Management children & families from >3,100 school
Slide 36: United to Uplift and Inspire Our Nation
UNITED TO UPLIFT AND INSPIRE OUR NATION “Having Pick n Pay as our sponsor is a powerful “I know how vital it is to have partners who message to our girls that we are “seen”. The believe in our journey — and Pick n Pay is one investment helps grow the women's game, of those trusted names every South
Slide 37: Closing Remarks and Outlook
CLOSING REMARKS AND OUTLOOK • PnP made meaningful progress in H1 FY26 - much remains to be done Our Strategic Priorities • 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 seg