SNG: South Africa: Pepkor's strategic moves pay off with record 2025 earnings and revenue growth

About this update from Pepkor Holdings Ltd.

Staff WriterJSE-listed Pepkor Holdings Limited has announced record profit growth for the year ended 30 September 2025, delivering a strong financial performance underpinned by diligent operational execution and the successful implementation of key strategic initiatives.The group reported a 12.0% increase in revenue to R95.3bn, while operating profit increased by 13.2% to R11.1bn.Driven by market share gains in its core retail business and a surging performance in its fintech segment, the group declared a dividend of 53.0 cents per share, up 9.2%.Normalised headline earnings per share (HEPS) grew by 23.4% to 161.0 cents, highlighting the group’s ability to generate sustainable value despite a dynamic economic landscape and while executing a number of strategic initiatives.Pieter Erasmus, chief executive officer of Pepkor Holdings Limited, said, “We delivered record profit growth in the 2025 financial year. These results evidence the successful execution of our strategy to entrench our unique business model, leveraging our physical retail footprint to fuel a digital ecosystem anchored in solving customer needs.”He adds, “We continue to build a unique position of trust among millions of our customers, solving their needs and making life’s essentials affordable and accessible. Our core retail business outperformed the market, while our strategic focus on digital inclusion and fintech has added scalable future growth opportunities that are now delivering tangible results.”Financial highlights- Revenue up 12.0% to R95.3bn- Operating profit (before capital items) increased 13.2% to R11.1bn- Gross profit margin expanded by 150 basis points to 39.8%- Headline earnings per share (HEPS) increased 14.8% to 161.0 cents (+23.4% on a normalised basis)- Cash generated from operations remained strong at R10.9bn- Return on net assets increased to 24.0%- Dividend of 53.0 cents per share declared- 6,000th store opened during the period- R60bn throughput enabled by FlashMarket-leading retail performancePepkor’s core retail businesses delivered consistent performance, expanding market share across key categories. Group merchandise sales increased by 8.8%, with like-for-like sales growth of 6.5%. The group’s store footprint expanded by 4.1%, surpassing the 6 000-store milestone.Trading in South Africa benefited from the introduction of the two-pot retirement system in the firs...

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