Pick n Pay building on capabilities - CNBC Africa

Pick n Pay building on capabilities

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The investment holding company saw revenue increase from 28.4 billion rand for the period ended 31 August 2012 to 30.2 billion rand for the period ending 1 September 2013.

“We believe that we have reached the point where the greater part of the structural change and its associated costs are behind us. We are now able to build on the capabilities that have been put in place and begin to realise the potential of our investments,” said Pick n Pay Holdings' chief executive officer Richard Brasher.

Gross profit was up 9.2 per cent from 4.9 billion rand in 2012 to 5.4 billion rand in 2013 and group turnover increased from 28.3 billion rand to 30 billion rand.

“While turnover growth remains under pressure, it is against a backdrop of a depressed economic environment in which our consumers struggle under increasing costs of basic services, high levels of unemployment and rising household debt,” Brasher said.  

“At the same time, competition within the retail industry remains fierce. We believe that our relentless focus on value, quality and service is winning customers back to Pick n Pay, and we are once again growing in line with the market.”

Profit before tax rose 4.9 per cent from 259.2 million rand in 2012 to 271.8 million rand in 2013 and earnings before interest, taxation, depreciation and amortisation increased from 737.4 million rand to 810.5 million rand.

Headline earnings per share increased by 13.6 per cent from 35.9 cents to 40.8 cents.

“Over the course of the last six months we have delivered an improved performance, built a stronger business and agreed on a clearer plan for the future. We are determined that Pick n Pay customers will benefit from our investment in infrastructure through improved availability, choice, quality and price,” said Brasher.

“Our management team is resolute in improving our customer offering, to ensure we stay the customers favourite grocery store. We know there is significant potential in the business and we have a clear plan to realise it.  More than ever, our aim is to meet the needs and aspirations of our customers, staff, communities and shareholders.”

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