Share

Cost cuts lift Pick n Pay full-year profit

Johannesburg - Grocer Pick n Pay [JSE:PIK] posted a 28% rise in full-year profit on Tuesday, helping grow dividend payouts for the first time in four years as cost cuts offset slack consumer spending.

Pick n Pay, the country's third-largest food retailer by market value, said headline earnings per share totalled 177.3 cents in the year to end-February compared with 138.5c a year earlier.

Once a favourite of investors and customers, Pick n Pay has lost ground to rivals such as market leader Shoprite in the last few years after failing to invest in new stores and supply chain, and paying out much of its profit as dividends.

But the 2013 appointment of Richard Brasher, the former UK head of Tesco who put in place a plan to cut costs, is widely expected to help the company be more competitive.

"The first stage of our recovery plan – which set out to stabilise the business – is now largely complete," Brasher said in a statement.

Pick n Pay, which closed 40 stores over the last two years under Brasher's turnaround plan, lifted dividend by 28% to 118.1 cents per share.

Sales grew 6.1% to R67bn. The sales growth was more than four times slower than the bottom line and highlights an industry-wide downswing as consumers battle rising electricity prices, higher interest rates and high personal debt levels.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Voting Booth
Do you think corruption-accused National Assembly Speaker Nosiviwe Mapisa-Nqakula will survive a motion of no confidence against her?
Please select an option Oops! Something went wrong, please try again later.
Results
No, her days are numbered
41% - 581 votes
Yes, the ANC caucus will protect her
59% - 822 votes
Vote
Rand - Dollar
18.89
+0.3%
Rand - Pound
23.87
+0.1%
Rand - Euro
20.38
+0.2%
Rand - Aus dollar
12.32
+0.1%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE