Pick N Pay Stores Limited · JSE:PIK
Pick N Pay Stores — H1 FY27 Earnings Presentation
30 slides from Pick N Pay Stores's earnings presentation, Oct 26, 2026
Slide 1: H1 FY27 Results
H1 FY27 Results 26 weeks ended 30 August 2026 Introduction Sean Summers Results Overview Tina Rookledge CEO Update Sean Summers 1
Slide 2: Introduction – Steady Progress on Our Turnaround
INTRODUCTION – STEADY PROGRESS ON OUR TURNAROUND • Progress on Pick n Pay turnaround initiatives with tangible signs that our strategy and plans are delivering • Pleased with the narrowing of both Group and Pick n Pay losses – more work to do • Customers choosing us more – positive like-for-like vol
Slide 3: H1 FY27 Results
H1 FY27 Results 26 weeks ended 30 August 2026 Introduction Sean Summers Results Overview Tina Rookledge CEO Update Sean Summers 3
Slide 4: Group Key Metrics
GROUP KEY METRICS Turnover GP margin Trading expenses Trading profit R60.5bn 18.8% 4.5% R0.5bn +2.4% (LfL 1.8%) +70bps growth improved R0.2bn Loss before tax EBITDA* Headline loss Net cash & capital items R0.4bn -R0.1bn -R0.3bn R10.0bn improved R0.2bn improved R0.2bn improved 31.9% up R6.9bn on FY26
Slide 5: Group Turnover by Segment
GROUP TURNOVER BY SEGMENT H1 H1 % LfL* % Turnover (Rbn) FY27 FY26 change change • Turnover growth impacted by constrained consumer spending and low inflation Boxer 24.1 22.7 6.3 1.4 Pick n Pay 36.4 36.4 (0.1) 2.0 • PnP SA internal selling price inflation of 1.5%, South Africa 34.7 34.9 (0.5) 1.4 bel
Slide 6: Group Trading Profit Segmentation
GROUP TRADING PROFIT SEGMENTATION H1 FY27 H1 FY26 Rbn Group Pick n Pay Boxer Group Pick n Pay Boxer Turnover 60.5 36.4 24.1 59.0 36.4 22.7 Trading profit/(loss) 0.5 (0.5) 1.0 0.3 (0.6) 0.9 Trading profit/(loss) margin 0.8% (1.4%) 4.2% 0.5% (1.7%) 4.1% Trading result after leases* (0.3) (1.1) 0.7 (0.
Slide 7: Boxer Financial Highlights
BOXER FINANCIAL HIGHLIGHTS TURNOVER GP MARGIN TRADING EXPENSES R24.1bn 20.7% of Turnover 17.6% of Turnover Total: 6.3% +0.5% vs. H1 FY26 +0.6% vs. H1 FY26 LFL: 1.4% TRADING MARGIN EBITDA HEADLINE EARNINGS 4.2% R1 749m R565m +0.1% vs. H1 FY26 +8.4% vs. H1 FY26 +9.1% vs. H1 FY26 Results Presentation H
Slide 8: Pick n Pay Key Metrics
PICK N PAY KEY METRICS Turnover GP margin Trading expenses Trading loss R36.4bn 17.5% 1.7% -R0.5bn -0.1% (LfL 2.0%) +70bps (LfL 2.0%) improved R0.1bn Trading loss after Loss before tax & EBITDA* Net cash leases* capital items -R1.1bn -R0.7bn -R0.9bn R7.7bn improved R0.1bn improved R0.1bn improved R0
Slide 9: Pick n Pay Trading Result Overview
PICK N PAY TRADING RESULT OVERVIEW H1 H1 % Rbn FY27 FY26 change • Trading loss reduced 16.9% Turnover 36.4 36.4 (0.1) • 3.9% Gross profit growth exceeded 1.7% Gross profit 6.4 6.1 3.9 trading expense growth Other income 1.2 1.2 0.1 • Other income growth impacted by Trading expenses (8.1) (8.0) 1.7 •
Slide 10: Gross Profit Margin Analysis
GROSS PROFIT MARGIN ANALYSIS H1 FY27 % Margin Margin % Gross profit Rbn change % change • PnP GP margin +70bps to 17.5% Pick n Pay 6.4 3.9 17.5 +70bps • PnP South Africa contributing 40bps Boxer 5.0 8.7 20.7 +50bps • Better category and margin management offsets increased diesel spend Group 11.4 6.0
Slide 11: Trading Expenses
TRADING EXPENSES H1 H1 % Trading expenses (Rbn) FY27 FY26 change • LfL expenses +2.0% vs. +6.7% for full year FY26 Pick n Pay 8.1 8.0 1.7 • Employee costs Boxer 4.2 3.8 10.2 • Support office restructure savings offset above- inflation store wage increases Group 12.4 11.8 4.5 • Occupancy costs • Prof
Slide 12: Net Finance Costs and Net Cash
NET FINANCE COSTS AND NET CASH H1 H1 % PnP Income statement Pick n Pay (Rbn) FY27 FY26 change Net funding interest 0.2 0.1 10.9 • PnP net finance costs +0.3% • Funding interest reflects healthy cash position Net lease interest (0.6) (0.5) 3.1 Net finance costs (0.4) (0.4) 0.3 • IFRS 16 interest +3.1
Slide 13: Working Capital Management
WORKING CAPITAL MANAGEMENT Pick n Pay working capital H1 H1 % PnP Balance sheet balances (Rbn) FY27 FY26 change Inventory 6.7 7.0 -3.2 • 3.2% inventory decline vs 0.1% turnover decline Trade and other receivables 3.4 3.8 -9.3 • R225m inventory reduction despite investment Trade and other payables (1
Slide 14: Group Capex Investment
GROUP CAPEX INVESTMENT Net capital investment* (Rbn) • Group H1 net capex of R0.7bn • PnP H1 gross capex of R0.6bn (+20.7% y-o-y) R2.6bn • PnP H1 net capex of R0.4bn y-o-y (+5.5% y-o-y), after R0.2bn of asset disposals R1.4bn • PnP full year gross capex guidance unchanged at R1.7bn R0.1bn • Strategi
Slide 15: Pick n Pay Free Cash Flow Profile
PICK N PAY FREE CASH FLOW PROFILE Cash generation and utilisation (Rbn) 4.7 7.7 Operational Free Cash Flow +R0.4bn 1.4 -0.4 0.2 2.8 2.4 -0.8 0.2 FY26 Cash flow Net funding Working capital Net capex^ H1 FY27 Boxer Gross proceeds H1 FY27 Net cash from interest movement Net operational dividend from 12
Slide 16: Group Earnings Per Share
GROUP EARNINGS PER SHARE H1 H1 % • 88.2% loss reduction Rm FY27 FY26 change • PnP effective tax rate 32.9% Loss for the period (38) (323) 88.2 Non-controlling interest (232) (173) 34.1 • 34.1% Boxer NCI increase • Minority shareholding increased from Loss attributable to PIK equity holders (270) (49
Slide 17: H1 FY27 Results
H1 FY27 Results 26 weeks ended 30 August 2026 Introduction Sean Summers Results Overview Tina Rookledge CEO Update Sean Summers 17
Slide 18: Volume-Led Growth Gaining Momentum
VOLUME-LED GROWTH GAINING MOMENTUM • Positive LfL volume growth across company- owned supermarkets • H1 LfL growth of 2.4% slightly ahead of PnP Corporate Owned Competitor LfL growth recent comparable period competitors results 3.5% • Momentum building, with H2 YTD LfL growth 3.0% ahead of H1 2.5% 2
Slide 19: Official Food Inflation Lowest in 16 Years
OFFICIAL FOOD INFLATION LOWEST IN 16 YEARS * Note: CPI Food incl. Non-Alcoholic Beverages • PnP SA internal selling price inflation at 1.5% - below CPI food Internal inflation versus CPI Food* (March 2026 to August 2026) inflation of 2.0%. Boxer recorded deflation of -2.4%, reflecting its high expos
Slide 20: Fresh Strengthens Our Turnaround
FRESH STRENGTHENS OUR TURNAROUND Growth is accelerating Owned Store Fresh LfL sales growth % Fresh Skills Training 7.0% 6.5% ~ 6% 6.0% 5.5% 5.0% 4.5% Fresh is a key 4.0% Fresh skills training growth engine of 3.5% 3.0% programme rolled out our turnaround 2.5% H1 FY25 H1 FY26 H1 FY27 H2 FY27 YTD (Ext
Slide 21: Advancing Our asap! Offer
ADVANCING OUR ASAP! OFFER AI Shopping assistant Credit Wallet Clothing online Your money back in seconds Instant Refunds Grocery shopping Spend anywhere became a conversation It never expires Ask for meal ideas PnP Clothing launched Say what you need on ASAP! in March 2026 Snap fridge photo ONLINE S
Slide 22: Smart Shopper PRO | More Value More Often
SMART SHOPPER PRO | MORE VALUE MORE OFTEN • Launching Smart Shopper PRO – a new premium paid- loyalty tier, a first for PnP • Four everyday benefits: unlimited free asap! delivery, extra 10% off in-store, 3x points on fresh, 2x points on bp fuel • Deeper engagement across asap!, in-store and bp – mo
Slide 23: Supply Chain Efficiency Gains Remain on Track
SUPPLY CHAIN EFFICIENCY GAINS REMAIN ON TRACK • Inventory optimisation released significant working capital, whilst maintaining customer service levels • Improvements across forecasting, replenishment and store planning disciplines advancing decision making • DP World and Lieben Logistics delivering
Slide 24: Store Labour Model Agreement Concluded
STORE LABOUR MODEL AGREEMENT CONCLUDED • Pick n Pay and SACCAWU have concluded a collective agreement following the Section 189A consultation process initiated on 4 May 2026 • The agreement establishes a more flexible, efficient and sustainable store labour model, with implementation commencing on 1
Slide 25: PnP Clothing Growth Supported by Higher Volumes
PNP CLOTHING GROWTH SUPPORTED BY HIGHER VOLUMES • Our growth remains volume led with positive growth over the 6 months against unit decline reported in the market • Market share gains continue* driven by lifestyle apparel, Baby and Schoolwear • Launched PnP Clothing on ASAP! and relaunched website –
Slide 26: Partnerships Unlocking Growth
PARTNERSHIPS UNLOCKING GROWTH 55+ years partnership ~6m FNB eBucks Campaigns drive customers Banking, retail, digital frequency, benefiting SA’s most cost- both Fuel and PnP 99c bread expansion effective domestic Express shop eBucks spend on asap! money transfers Limited-edition collectables with fu
Slide 27: Boxer | H1 FY27 Highlights
BOXER | H1 FY27 HIGHLIGHTS Operational momentum ▪ 24 new stores opened with no closures, taking estate to 600 stores ▪ Healthy LFL implied volume growth in the context of internal selling price deflation ▪ Sustained monthly market share gains* Solid financial result despite challenging environment ▪
Slide 28: Steady Delivery Against Our Strategic Priorities
STEADY DELIVERY AGAINST OUR STRATEGIC PRIORITIES Completed initiatives: In-progress initiatives: • Successful recapitalization of Recapitalise • Positive like-for-like the business volume growth in a Leadership Accelerate • Leadership structures re- and LfL Sales challenging market established and s
Slide 29: Welcome Spencer Sonn
WELCOME SPENCER SONN 29
Slide 30: Key Takeaways
KEY TAKEAWAYS • Pick n Pay reduced its loss despite a challenging market, but substantial further profitability improvement remains necessary • An improving customer experience is supporting topline growth, and initial benefits of other turnaround priorities in place are beginning to show in financi