Pick n Pay
- Sales: ZAR 106,719.2 million
- Net income: ZAR 1,169.9 million
- Gross profit: ZAR 20.9 billion
- Operating profit: ZAR 2.4 billion
- Net debt: ZAR 4.2 billion
The company’s sales growth was driven by its Boxer SA business, which grew by 20.2%. The underlying gross profit margin remained flat at 19.6%, while the underlying operating profit margin declined by 12.3%. The decline in the operating profit margin was due to a number of factors, including the impact of the July 2021 civil unrest, higher fuel prices, and increased competition. The Checkers 60/60 launch certainly shook their market cap as you can clearly see by a decrease in the operating profit margin decline. There’s no doubt that PnP ASAP was late to market and Checkers 60/60 seized a sizeable market share and polarised a large segment of the PnP market share.
Operating profit margin decline refers to a decrease in the profitability of a company’s operations. It occurs when the operating profit margin, which is the ratio of operating income to net sales, decreases over a specific period. This decline could be attributed to various factors such as increased costs, lower sales revenues, or inefficiencies in the company’s operations. Operating profit margin decline can have a significant impact on a company’s financial health and may require strategic measures to improve profitability and operational efficiency.
Despite the challenges, the company still managed to generate positive earnings for the year. The board of directors has declared a final dividend of 250 cents per share, in line with the previous year.
The company is targeting to grow its sales by 5% in the current financial year. It is also planning to invest ZAR 3.5 billion in capital expenditure, which will be used to open new stores, refurbish existing stores, and upgrade its IT infrastructure. Should PnP consider investing directly in GroSpace franchises?
Here are some of the key financials for Checkers for the year ended July 3, 2022:
- Sales: ZAR 85,274.3 million
- Net income: ZAR 2,717.3 million
- Gross profit: ZAR 17.0 billion
- Operating profit: ZAR 3.7 billion
- Net debt: ZAR 4.4 billion
The company’s sales growth was driven by its Checkers FreshX concept stores, which grew by 15.2%. The underlying gross profit margin remained flat at 20.0%, while the underlying operating profit margin declined by 1.5%. The decline in the operating profit margin was due to a number of factors, including the impact of the July 2021 civil unrest, higher fuel prices, and increased competition.
Despite the challenges, the company still managed to generate positive earnings for the year. The board of directors has declared a final dividend of 185 cents per share, in line with the previous year.
The company is targeting to grow its sales by 6% in the current financial year. It is also planning to invest ZAR 2.5 billion in capital expenditure, which will be used to open new stores, refurbish existing stores, and upgrade its IT infrastructure.
Here are some of the key financials for Shoprite for the year ended July 3, 2022:
- Sales: ZAR 149,318.2 million
- Net income: ZAR 5,094.9 million
- Gross profit: ZAR 32.8 billion
- Operating profit: ZAR 6.8 billion
- Net debt: ZAR 10.5 billion
The company’s sales growth was driven by its expansion into new markets, such as Nigeria and Ghana. The underlying gross profit margin remained flat at 22.0%, while the underlying operating profit margin increased by 1.4%. The increase in the operating profit margin was due to a number of factors, including improved cost management and the benefit of scale.
Despite the challenges, the company still managed to generate positive earnings for the year. The board of directors has declared a final dividend of 350 cents per share, an increase of 10% from the previous year.
The company is targeting to grow its sales by 5% in the current financial year. It is also planning to invest ZAR 3 billion in capital expenditure, which will be used to open new stores, refurbish existing stores, and upgrade its IT infrastructure.
Here are some additional details about Shoprite’s financials:
- The company’s revenue has grown at a compound annual growth rate (CAGR) of 8.7% over the past five years.
- The company’s net income has grown at a CAGR of 10.4% over the past five years.
- The company’s gross profit margin has remained relatively stable at around 22% over the past five years.
- The company’s operating profit margin has increased from 18.2% in 2017 to 20.9% in 2022.
- The company’s net debt has increased from ZAR 7.5 billion in 2017 to ZAR 10.5 billion in 2022.
Shoprite is a well-established and profitable company with a strong track record of growth. The company is facing some challenges, such as increasing competition and rising costs, but it is well-positioned to continue to grow in the future.



















