Refurbishing disrupts Pick n Pay’s revenue growth
Retailer says profit grew faster than sales despite restricting its selling price inflation to 6.1% for the year, well below published food inflation of 11%
Pick n Pay blamed its revenue growth of 7% to R79bn on "disruption to trade" due to refurbishing 62 stores and closing 12 underperformers during the 52 weeks to February 26. Aftertax profit grew a more impressive 17% to R1.2bn, and the grocery chain declared a final dividend of 146.4c, taking the total for the year to 176.3c, an 18% increase on the previous year’s 149.4c. Pick n Pay managed to grow profit faster than sales despite restricting its selling price inflation to 6.1% for the year, well below published food inflation of 11%, CEO Richard Brasher said in the results statement released on Wednesday morning. Franchise fee income grew 10.5% to R349.8m, reflecting the 70 new franchise stores opened during its financial year. These included 32 Pick n Pay Express stores on BP forecourts. There were now 111 Pick n Pay Express stores, more than double the number of two years ago, Brasher said. The group opened 68 new Pick n Pay company-owned stores and 25 new Boxer stores across all...
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