Pick N Pay Stores Limited · JSE:PIK
Pick N Pay Stores — FY2026 Earnings Presentation
38 slides from Pick N Pay Stores's earnings presentation, May 25, 2026
Slide 1: FY26 Full Year Results
FY26 Full Year Results 52 weeks ended 1 March 2026 1
Slide 2: FY26 Full Year Results
FY26 Full Year Results 52 weeks ended 1 March 2026 Introduction Sean Summers Results Overview Lerena Olivier CEO Update Sean Summers 2
Slide 3: Introduction
INTRODUCTION • Pleased with the steady recovery in topline growth since FY25 – recognising more work to be done • Customer focused initiatives gaining traction – supported by our new “Come home to PnP” campaign • We control the controllables – the implementation of our Corporate Plan initiatives con
Slide 4: FY26 Full Year Results
FY26 Full Year Results 52 weeks ended 1 March 2026 Introduction Sean Summers Results Overview Lerena Olivier CEO Update Sean Summers 4
Slide 5: Group Key Metrics
GROUP KEY METRICS Turnover* GP margin Total expenses Trading profit R120.3bn 18.8% 4.1% R1.7bn 3.4% (LfL 3.6%) +50bps growth declined R74m Profit before tax EBITDA** Headline loss Net cash & capital items R1.6bn R0.4bn -R0.4bn R3.1bn declined R0.2bn improved R0.6bn improved 5.4% down R1.1bn on FY25
Slide 6: Turnover Growth by Segment
TURNOVER GROWTH BY SEGMENT FY26 FY25 % LfL* % Turnover (Rbn) 52 wks 52 wks change change • Pick n Pay SA Supers LfL sales 2.8% Pick n Pay 73.6 74.8 (1.6) 3.1 • Company-owned LfL 3.9% • Franchise LfL 0.9% South Africa 70.4 71.4 (1.4) 2.8 Rest of Africa 3.2 3.4 (6.3) 10.6 • Positive H2 trajectory exce
Slide 7: Trading Profit Segmentation
TRADING PROFIT SEGMENTATION FY26 (52 wks) FY25 (53 wks) Rbn Group Pick n Pay Boxer Group Pick n Pay Boxer Turnover 120.3 73.6 46.7 119.0 76.5 42.6 Trading profit/(loss) 1.7 (1.0) 2.6 1.8 (0.5) 2.3 Trading profit/(loss) margin 1.4% (1.3%) 5.7% 1.5% (0.7%) 5.4% Trading result after leases* 0.1 (2.0) 2
Slide 8: Boxer | Financial Achievements
BOXER | FINANCIAL ACHIEVEMENTS Turnover +12.3% Trading profit +17.3% LFL +4.5% (52/52w basis) (52/52w basis) Trading margin @ 5.7% R709m net cash R +0.3% vs. FY25 (R180m net debt at March-25) 95.37c final dividend declared ROIC @ 26.0% FY26 total of 140.67c (66.7% excluding IFRS 16) (40% payout rati
Slide 9: Pick n Pay Key Metrics
PICK N PAY KEY METRICS Trading profit Turnover* GP margin Total expenses after leases** R73.6bn 17.0% 1.1% -R2.0bn -1.6% (LfL 3.1%) +40bps (LfL 6.7%) down R0.3bn Net funding Loss before EBITDA** Net cash interest received capital items -R1.4bn R0.2bn -R1.8bn R2.4bn down R0.5bn improved R0.7bn improv
Slide 10: Pick n Pay Trading Result Overview
PICK N PAY TRADING RESULT OVERVIEW FY26 FY251 % Rbn 52 wks 53 wks change • Trading loss increased to R953m Turnover 73.6 76.5 (3.7) • GP margin improvement not sufficient to Gross profit 12.5 12.7 (1.3) offset increased expenses as % of turnover Other income 2.5 2.5 (2.4) • Other income impacted by
Slide 11: Gross Profit Margin Analysis
GROSS PROFIT MARGIN ANALYSIS FY26 % Margin Margin % • Pick n Pay GP margin +40bps to 17.0% Gross profit Rbn change % change • Investment in franchise Pick n Pay 12.5 (1.3) 17.0 +40bps • Botswana acquisition Boxer 10.1 11.3 21.6 +30bps • 0.3% underlying GP margin improvement Group 22.6 3.9 18.8 +50bp
Slide 12: Trading Expenses Analysis
TRADING EXPENSES ANALYSIS FY26 FY25 % • Pick n Pay trading expenses +1.1% Trading expenses (Rbn) 52 wks 53 wks change • Successful Store Estate Reset Pick n Pay 16.0 15.8 1.1 • Occupancy costs excl. lease profits +0.4% Boxer 7.8 7.1 10.9 • Pick n Pay LfL expenses ahead of LfL sales Group 23.8 22.8 4
Slide 13: Pick n Pay Net Finance Costs
PICK N PAY NET FINANCE COSTS FY26 FY25 Rbn Pick n Pay (Rm) 52 wks 53 wks change Net funding interest 0.2 (0.5) 0.7 Net lease interest (1.1) (1.1) Flat Net finance costs (0.9) (1.6) 0.7 • Pick n Pay net funding interest income • Net funding interest positive swing +R0.7bn • Reflects recapitalisation
Slide 14: Group Earnings Per Share
GROUP EARNINGS PER SHARE FY26 FY25 % Group Earnings 52 wks 53 wks change Loss attributable to PIK (Rm) (728) (736) 1.1 Headline adjustments (Rm) 342 328 4.3 Headline loss (Rm) (386) (408) 5.4 HEPS (cps) (52.58) (61.54) 14.6 EPS (cps) (99.17) (111.01) 10.7 WANOS* (millions) 734 663 10.7 • Headline lo
Slide 15: Working Capital Management
WORKING CAPITAL MANAGEMENT Net working capital FY26 FY25 cashflow movement* (Rbn) 52 wks 53 wks • Group working capital absorbed R0.4bn liquidity Pick n Pay 0.0 (0.5) • Pick n Pay working capital absorbed no liquidity Boxer (0.4) (0.1) • Notwithstanding inventory range investment Group liquidity abs
Slide 16: Pick n Pay Free Cash Flow Profile
PICK N PAY FREE CASH FLOW PROFILE Cash generation and utilisation (Rbn) 4.4 -1.3 0.2 0.0 -0.9 2.4 Operational Free Cash Flow -R2.0bn FY25 Cash flow Net funding Working Net capex^ FY26 Net cash from interest capital Net cash opening operations* received movement closing balance balance *Cash flow fro
Slide 17: Capex Investment
CAPEX INVESTMENT Net capital investment* (Rbn) • Group gross capex R2.1bn (R1.9bn net of disposal proceeds) R2.6bn • Pick n Pay capex R0.9bn, +41.2% R1.9bn • Improving store estate R1.5bn R1.4bn • Pick n Pay FY27 gross capex forecast R1.7bn R0.8bn (R1.5bn net of disposal proceeds) R0.5bn R0.1bn • In
Slide 18: Net Funding
NET FUNDING FY26 FY25 Rm 52 wks 53 wks Gross debt (excl. leases) (200) (1 150) Cash & cash equivalents 3 277 5 328 Group net cash 3 077 4 178 Pick n Pay net cash 2 368 4 358 Boxer net cash/(debt) 709 (180) • Group net cash reduced R1.1bn year-on-year • +R0.9bn generated by Boxer • Pick n Pay -R2.0bn
Slide 19: FY26 Full Year Results
FY26 Full Year Results 52 weeks ended 1 March 2026 Introduction Sean Summers Results Overview Lerena Olivier CEO Update Sean Summers 19
Slide 20: Topline Momentum Continues
TOPLINE MOMENTUM CONTINUES • Momentum continues through steady improvement in LfL sales growth • Encouraged by accelerated customer growth over the last 2 years • Our improved offer and focus on operational execution bearing fruit 6.0% Owned Store LfL sales growth % +5.9% LfL customer growth FY26 5.
Slide 21: Franchise Gaining Traction
FRANCHISE GAINING TRACTION • Underlying Franchise industry undergoing an evolution • We have a strong relationship with our Franchise community • Topline performance of our franchise partners advancing • More consistent range execution a key focus • Multiple ASAP opportunities being pursued Franchis
Slide 22: Helping Keep Prices Lower for Customers
HELPING KEEP PRICES LOWER FOR CUSTOMERS Internal inflation versus CPI Food* • PnP SA internal selling price inflation at 1.9% - well below CPI food inflation of 4.4% CPI CPIFood* Food 4.4% • Customers benefitting from lower prices across key Pick n Pay 1.9% grocery and household staples - reducing p
Slide 23: Improved Fresh Offer
IMPROVED FRESH OFFER • Focus and investment in our Fresh offer gaining clear traction • Fresh delivering category-leading growth in our business • Improved planning, EDLP execution and impactful promotional mechanics • Continued focus on people capability and training • Renewed commitment and suppor
Slide 24: ASAP! Leading in Omnichannel Integration
ASAP! LEADING IN OMNICHANNEL INTEGRATION PnP ASAP! is the only app in South Africa that fully integrates on-demand groceries, store selection, loyalty, clothing, airtime/data and bill payments in one seamless platform • FY26 a step-change year - now able to do more, faster: - Technology ecosystem fu
Slide 25: Smart Shopper Driving Value and Growth
SMART SHOPPER DRIVING VALUE AND GROWTH Differentiated Value Proposition Omnichannel Enablement • >2 million new Smart Shopper registrations in FY26 • Smart Shopper and ASAP! now fully integrated into a single seamless app • Only grocery retailer offering both instant savings and • Sign-up and swipe
Slide 26: Delivering Supply Chain Efficiency Gains
DELIVERING SUPPLY CHAIN EFFICIENCY GAINS • DP World partnership strengthened cost and service levels • Meaningful efficiency gains delivered in FY26 - Grocery km’s per trip reduced by ~14% and Perishables by ~16% through a combination of improved route planning and truck utilisation - Distribution c
Slide 27: Store Labour Model Review
STORE LABOUR MODEL REVIEW • This is an important part of the turnaround journey • Aligning our store labour model with market realities and our operational requirements is critical • Over the years, store labour arrangements have become increasingly complex and costly – limiting our ability to respo
Slide 28: Clothing Highlights in FY26
CLOTHING HIGHLIGHTS IN FY26 Driving Growth • Market share gains continue* driven by Boys, Kids, Baby and Menswear, with highest share growth in Schoolwear • Clothing on ASAP! live from 2 March, delivering strong growth Disciplined Investment and Execution • Opened 32 new Clothing stores and revamped
Slide 29: Partnerships for Growth
PARTNERSHIPS FOR GROWTH Delivering value through integrated loyalty, banking and digital services with two of South Africa’s leading financial institutions • Up to 30% back in eBucks at Pick n Pay (incl. Clothing) • Up to 30% real cash back via Absa Rewards • Benefits reaching ~6 million FNB eBucks
Slide 30: Springbok Partnership
SPRINGBOK PARTNERSHIP • Two iconic and trusted South African brands united with deep national resonance • Reinforces “Come Home to PnP”, rooted in shared pride, unity and belonging • Commercial activations driving national brand visibility and increased customer engagement • Deep community reach acr
Slide 31: Doing Good Is Good Business
DOING GOOD IS GOOD BUSINESS Schools Club Feed the Nation • 23-year track record • 46 million meals provided over the • Supporting >2.3 last 6 years million learners • Includes support for • Across >3,300 child-headed registered schools families and schools Disaster Relief Beach Cleanups • Food and e
Slide 32: Boxer | FY26 Highlights
BOXER | FY26 HIGHLIGHTS Strong operational momentum + Accelerated turnover momentum vs. FY25 (52/52w basis) + Healthy LFL volume growth in the context of internal selling price deflation * Consistent market share gains + 54 new stores opened (51 net) to reach 576 stores * Strong trading profit growt
Slide 33: Meaningful Progress Across Strategic Priorities
MEANINGFUL PROGRESS ACROSS STRATEGIC PRIORITIES Completed initiatives: • Successful recapitalization of the business Recapitalise • Leadership structures re-established and succession plans in place across senior leadership roles Leadership Future Fit Structure and • Store estate reset plan (targeti
Slide 34: Outlook
OUTLOOK • Turnover o Post-period LfL sales growth for the first 9 weeks shows further improvement on FY26 o Inflation expected to gradually rise over remainder of the year • Trading margin o Increased diesel spend has the potential to pressurise gross margin o We will use all available levers to car
Slide 35: Key Takeaways
KEY TAKEAWAYS • Break-even for the PnP segment is absolutely on-track o PIK now has the capital resources necessary to take PnP through to break-even (post the Boxer ABB) aided by the strength of our balance sheet o The turnaround requires successful execution on all of our initiatives o Importantly
Slide 36: Q&A Session
Q&A SESSION 36
Slide 37: Appendices
FRESHLY SQUEEZED RIGHT HERE
Slide 38: Key Developments | Rest of Africa
KEY DEVELOPMENTS | REST OF AFRICA Zambia ⚫ Robust sales growth during FY26 despite loadshedding, which is currently subsiding as hydroelectricity Namibia generation improves ⚫ Pick n Pay ceased trading in Namibia on 30th June after Franchise agreement terminated Zimbabwe ⚫ TM PnP have been trading i