Retail giant Pick n Pay claims to have delivered resilient financial performance for the year ended February 27, 2022 despite the significant negative impact of the civil unrest of July 2021 and some continuing trade restrictions associated with the Covid-19 pandemic.
Group revenue increased by 5.2%, despite an estimated R2.7 billion in lost sales due to a large number of store closings due to civil unrest (R1.8 billion) and liquor trade restrictions. , mainly in the first half of the year (R0.9 billion).
Pick n Pay said the momentum in trading picked up well after the hiatus, with sales growth of 7.4% in the final quarter of the year. Gross profit and operating margins reflect the significant impact of lost sales and related earnings, including material losses of stock, with most of the unrest-related losses expected to be recovered by insurers, he said.
The board declared a final dividend of 185.35 cents per share, bringing the total FY22 dividend to 221.15 cents per share, up 23% in line with pro-forma earnings per share.
The group said it has made progress on a number of strategic priorities, including strong customer growth from refurbished Pick n Pay Select supermarkets; Market share gains from Pick n Pay Clothing and significant growth in online on-demand grocery sales in the second half, following the relaunch of Pick n Pay Asap in August 2021.
Pick n Pay Clothing has seen sales growth of 21%, while the relaunch of the group’s on-demand grocery offering as Pick n Pay Asap has seen year-over-year growth of more than 300% since August 2021.
Looking ahead, Pieter Boone, CEO of Pick n Pay, said, “Our management team has developed a strong strategic plan to bring Pick n Pay closer to the customer and accelerate the progress of our key growth engines, including expansion. of our boxers, apparel and omnichannel businesses “.