Another loss for Pick n Pay what happened and what it means

Pick n Pay Group reported an improvement in its overall results for the year to 1 March 2026, but the supermarket chain at the heart of the business remains loss-making and its recovery will take longer than expected.

Key numbers: an improved group picture, a struggling Pick n Pay segment

For the 52 weeks to 1 March 2026 the group recorded a profit before tax and capital items of R360 million, a R597 million swing from the prior year. After tax and capital items the group recorded a loss of R193 million for the period, improved from a R651 million loss in FY25. The group’s total comprehensive loss narrowed to R185 million from R658 million the previous year.

Group turnover was R120.3 billion. Group trading profit declined by 4.2% to R1,685 million, a R74 million reduction, driven by divergent performance across the group’s divisions.

Boxer lifts the group, Pick n Pay drags

Boxer had an “exceptional” year: trading profit rose by R330 million to R2.6 billion, and Boxer contributed 12.3% growth to group turnover. By contrast, the Pick n Pay segment’s performance worsened the Pick n Pay trading loss increased by R404 million to R1.0 billion, and Pick n Pay turnover declined by 1.6% as the group continued a store estate reset.

How the group is responding

To shore up finances the group completed a placement of 57.3 million Boxer shares through an accelerated bookbuild for gross proceeds of R4.7 billion. That sale reduced the Pick n Pay Group’s Boxer shareholding from 65.6% to 53.1%. The group said the net proceeds, together with R2.4 billion of net cash within the Pick n Pay segment, will be used to invest in and fund Pick n Pay’s turnaround.

Management highlighted actions already under way: closing loss-making stores, strengthening store and regional management, improving product offerings, and managing trading expenses more tightly. The group said employee costs in the Pick n Pay segment are high representing 41.4% of FY26 trading expenses and that support office employee costs were targeted through restructuring and a salary freeze.

Restructuring and the timeline to break-even

Post year-end the group initiated a section 189A process with store-based employees and labour partners as part of wider restructuring. Management has pushed out the target for the Pick n Pay segment to reach trading profit break-even after lease interest to FY29, saying the delay reflects the phasing of turnaround initiatives rather than a loss of confidence.

Governance and outlook

The group disclosed that CEO Sean Summers is potentially to receive 4 million performance-based shares, valued at around R100 million. It also warned that elevated fuel prices and geopolitical events are creating uncertainty for FY27 trading through higher food inflation, logistics costs and pressure on consumer spending.

Bottom line

Pick n Pay Group’s FY26 results show a clear split: Boxer is performing strongly and helped improve group-level outcomes, while the core Pick n Pay supermarket business remains in a multi-year turnaround that will require store-level changes, cost control and time to restore profitability.