Amid a challenging period for the Pick n Pay Group, characterised by billions in losses due to the poor performance of its core grocery business, Boxer has been a bright spark.
The discount retailer has seen substantial turnover and earnings growth in recent years and is seeing a large store expansion.
Last year, Boxer was listed on the JSE as the Pick n Pay Group looked to raise R8 billion in cash in a bid to recapitalise the business. Pick n Pay still owns roughly 65% of Boxer following the listing.
Despite the success of its Initial Public Offering (IPO) in November last year, Boxer is set to feel the impact in its upcoming results.
In its 2025 annual financial results, Boxer warned that earnings per share (EPS) and headline earnings per share (HEPS) for the 26 weeks ending 31 August 2025 would decline by more than 20% year-on-year.
This was primarily the result of the chosen IPO structure, which led to a large increase in the share count in November 2024, and was not a reflection of operational performance.
Following the IPO, Boxer’s weighted average number of ordinary shares in issue, net of treasury shares, increased by 51.1% from a restated 299.999 million for H1 FY25 to 453.290 million for H1 FY26.
A new trading statement has given further insight into the possible impact of the IPO structure.
EPS are expected to decline by between 30% and 36% to a range between 105.21 and 115.18 cents per share.
HEPS are expected to decline by between 28% and 34%, to a range of 108.57 and 118.85 cents per share.
The group’s headline earnings as a whole increased by up to 9% to a range between 492 and 539 cents per share.
“The improvement in headline earnings is driven by a strong trading result, which was able to partially offset the previously guided incremental costs associated with being a listed entity,” said Boxer.
Other financial indicators are also heading in the right direction, with turnover increasing by 13.9%, while like-for-like sales increased 5.3%.
Further details will be provided in Boxer’s official interim results, which are set to be released on Monday, 13 October 2025.
| Metric | Expected Range % Change | 26 weeks to 31 Aug 2025 (Expected Range Cents per share) | 26 weeks to 25 Aug 2024 (Restated Cents per share) |
|---|---|---|---|
| Absolute earnings metrics | |||
| Headline earnings (Rm) | 0% to +9% | 492 – 539 | 492 |
| Per share earnings metrics | |||
| Earnings per share (EPS) | -30% to -36% | 105.21 – 115.18 | 163.67 |
| Diluted EPS | -30% to -36% | 104.26 – 114.14 | 163.67 |
| Headline earnings per share (HEPS) | -28% to -34% | 108.57 – 118.85 | 164.00 |
| Diluted HEPS | -28% to -34% | 107.59 – 117.78 | 164.00 |
Issued on BusinessTech by Luke Fraser | https://businesstech.co.za/news/business/838469/big-blow-for-pick-n-pays-golden-child/
