Pick n Pay narrows trading loss by R1bn but only expects to break even by 2028
The retailer's trading loss has been reduced by 64% in the last 12 months, after solving its debt challenges.
Picture: © Michael Turner/123rf.com
Stephen Grootes speaks to Pick n Pay CEO Sean Summers about the retail giant's progress in narrowing its losses, thanks to a turnaround plan that's starting to show promising results.
Listen to the interview in the audio player below.
Pick n Pay on Monday announced it's been able to make important progress in its road to financial recovery.
The retailer's trading loss has been reduced by R1 billion, well ahead of forecast as the retailer's turnaround begins to take shape.
It's been able to stem the amount of money it's been losing, recording a loss of only R237m in the financial year to end March 2025, compared to a loss of R1,5bn the previous financial year.
In May 2024, the Group embarked on a year of recovery after solving its debt challenges.
Over the past 12 months, It's managed to reduce its trading loss by 64% after predicting a 50% reduction.
In this financial year, the Group raised R12.5 billion through the Pick n Pay Rights Offer (R4.0 billion) and the Boxer JSE listing (R8.5 billion), restoring the Group to a net cash position of R4.2 billion.
During this period, it's recorded a 48.7% growth in online sales, largely driven by the launch of its new asap! App, a direct competitor to the successful Checkers Sixty60 delivery service.
Speaking to Stephen Grootes on The Money Show, Pick n Pay CEO, Sean Summers says their recover plan is on track, and they expect to break even by 2028.
"We have dealt with some of the fundamental issues that have bedeviled us as a company, and the major thing first of all was remedying the balance sheet challenges that we had."
- Sean Summers, CEO - Pick n Pay
"I feel that the cycle we were going through of things getting worse before getting better has now reached the bottom, and from here on in, it will be an upward trajectory."
- Sean Summers, CEO - Pick n Pay
"All great organisations do have an institutional muscle memory, that clearly understands what it is they do, what is important, what are their real values. And to a degree, that had been lost in the company, sadly."
- Sean Summers, CEO - Pick n Pay
Scroll to the top of the article to listen to the full interview.