Boxer’s IPO Boom Comes Back to Bite as Earnings Per Share Take a Knock

For the past few years, Boxer has been the golden child of the Pick n Pay Group the one part of the business that consistently delivered strong growth while its parent company struggled through losses, layoffs and a grocery war with Shoprite and Checkers.

But now, the retailer that was once hailed as Pick n Pay’s great turnaround hope is about to report something its loyal investors won’t like to see: a drop of more than 30% in earnings per share (EPS).

And here’s the twist, it’s not because Boxer’s business is failing. In fact, its sales are booming.

A Technical Knock, Not a Trading Problem

Boxer’s 2025 trading statement reveals that:

• EPS is expected to fall between 30% and 36%, down to 105c – 115c per share

• Headline earnings per share (HEPS) are set to drop 28% to 34%, landing between 108c and 118c

Yet, confusingly, Boxer also reported:

• Turnover up 13.9%

• Headline earnings up as much as 9%

• Like-for-like sales up 5.3%

So how does a profitable business report declining per-share earnings?

Simple: it sold more slices of the pie.

The IPO That Boosted Cash and Diluted Returns

When Boxer listed on the JSE in November 2024, Pick n Pay used the IPO to raise R8 billion as part of a massive recapitalisation plan. Boxer became a semi-independent entity, although Pick n Pay still owns around 65% of it.

But the deal came with consequences.

The number of Boxer shares on the market jumped by 51%, from 300 million to over 453 million. That means even if profit stays stable, it gets divided among more shareholders, dragging earnings per share down.

In short: Boxer is making more money, but investors are getting smaller slices.

Retail Investors React: “So I bought into success and got punished?”

On social media, retail shareholders are already grumbling. One user on X wrote:

“Only in South Africa do you invest in a winning retailer and STILL get negative EPS. Make it make sense.”

Another investor joked:

“Boxer grew but my dividends didn’t. So who exactly is eating all that profit?”

What Happens Next?

Boxer has made it clear that this is a paper loss, not a performance problem. The company is still expanding aggressively, opening stores across townships and peri-urban areas where traditional supermarkets struggle.

Its official interim results, due Monday, 13 October 2025, will reveal more and investors will be watching closely to see whether operational momentum eventually outweighs share dilution.

This is one of those rare cases where the headline tells half the story. Boxer isn’t stumbling. it’s simply paying the administrative price of going public.

Investors who believe in the long-term township retail wave may see this as a temporary wobble rather than a red flag.

But one thing is clear: Boxer’s future will be judged on whether it can grow fast enough to make that bigger shareholder pool worthwhile.

For now, the company is still a fighter, just one battling its own IPO shadow.

{Source: BusinessTech}

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