Boxer’s maiden FY earnings hit by IPO dilution
Boxer Retail Limited has delivered strong maiden results following its landmark 2024 JSE listing, with turnover up 13.2 per cent to R42.3 billion and trading margin outperforming guidance at 5.5 per cent. This performance was driven by store expansion, efficient operations, and strong customer traction. Headline earnings per share, however, fell by 11.8 per cent y-o-y due to IPO-related share dilution. Boxer CEO, Marek Masojada joins CNBC Africa for more.
Mon, 12 May 2025 11:07:50 GMT
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AI Generated Summary
- Boxer Retail Limited reports strong maiden results following the 2024 JSE listing, with turnover up 13.2 percent and a trading margin of 5.5 percent.
- The company plans to open 60 new stores in the upcoming year, focusing on superstore and liquor formats, while ensuring cautious growth to maintain efficiency.
- Despite one-off expenses related to the IPO, Boxer remains committed to reducing debt levels and sustaining profitability while catering to low-income consumers with competitive pricing strategies.
Boxer Retail Limited has reported strong inaugural results following its significant listing on the JSE in 2024. The company's turnover increased by 13.2 percent to R42.3 billion, with a trading margin exceeding expectations at 5.5 percent. This exceptional performance was attributed to store expansion, operational efficiency, and robust customer engagement. However, despite the positive figures, headline earnings per share declined by 11.8 percent year-on-year due to IPO-related share dilution. Marek Masojada, the CEO of Boxer, shared insights during an interview on CNBC Africa's Power Lunch Southern Africa. Masojada acknowledged the investor confidence in the business post-IPO and highlighted the company's commitment to sustaining this trust through continued expansion and community outreach. Boxer added 48 new stores in the past fiscal year and plans to open 60 more in the coming year, focusing on superstore and liquor formats strategically. The company remains cautious about its growth strategy to ensure efficiency and market saturation without compromising operational quality. While Boxer surpassed its trading margin target in the current year, Masojada hinted at potential margin compression in the 2026 financial year due to listing costs and the Tonga Distribution Centre. Despite strong trading profit growth, the company experienced flat headline earnings, mainly attributable to high finance and tax expenses linked to the IPO. Masojada reassured investors that this was a one-off adjustment and emphasized the company's commitment to reducing debt levels over the coming months. Boxer's success in maintaining internal price inflation at just 0.3 percent, significantly lower than industry averages, was attributed to consumer-centric promotional strategies. The company's focus on providing value through promotions and multi-buy offerings has enabled them to retain profitability and consumer loyalty. Masojada affirmed Boxer's dedication to serving the low-income consumer segment effectively while ensuring sustainable growth and financial stability. As Boxer continues its journey post-IPO, the company remains optimistic about its expansion plans and ability to navigate potential challenges in the retail landscape.
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