Boxer Expands to 525 Stores Nationwide Despite Flat Earnings Post-Listing

Pick n Pay’s discount retail brand Boxer has reached a major milestone, now operating 525 stores across the country. The chain continues to expand rapidly, even amid flat headline earnings in its first year as a separately listed company.

Boxer, one of South Africa’s fastest-growing discount retailers, has shown remarkable growth with a 13.2% jump in turnover to R42.34 billion for the 53 weeks ending 2 March 2025. The company’s trading profit rose by 9.9% to R2.3 billion, highlighting strong underlying performance despite economic headwinds.

However, headline earnings remained flat at R1.407 billion, down slightly by 0.1%. This reflects increased net finance costs tied to pre-listing debt restructuring and a higher effective tax rate, which offset operational gains.

When comparing standard 52-week periods, turnover still rose a solid 10.4% to R41.3 billion, and trading profit grew 7% to R2.25 billion—demonstrating consistent momentum even when adjusting for the extra week in FY25.

“Boxer is resolutely focused on execution to capture its long-term structural growth opportunity,” said CEO Marek Masojada.

Major Expansion and Store Growth

Boxer opened 48 new stores during the financial year, pushing its total store count to 525, including:

• 320 Boxer Superstores

• 175 Boxer Liquor outlets

• 30 Boxer Build stores

This expansion included 24 net new Superstores and 25 new liquor outlets. Importantly, 15 Pick n Pay stores were converted to Boxer stores during the year—8 Superstores and 7 liquor stores—leading to noticeable sales upticks in those locations.

Boxer’s gross lettable area (GLA) also increased by 9%, further supporting its expansion strategy.

The group plans to open at least 25 new Superstores and 35 liquor stores annually, while targeting mid-single-digit like-for-like sales growth.

Post-IPO Strategy and Dividend Plans

Boxer listed on the Johannesburg Stock Exchange in November 2024. As part of the IPO process, the company declared R9.3 billion in dividends to Pick n Pay before listing. In line with its pre-listing commitments, no final FY25 dividend was declared.

However, Boxer plans to declare an interim FY26 dividend later this year and aims to pay out 40% of headline earnings per share from FY26 onwards.

Profit Margins and Market Challenges

Boxer maintained a trading margin of 5.5%, slightly below the 5.6% margin in FY24 but still in line with its medium-term guidance. The company acknowledged the likelihood of earnings pressure in FY26 due to:

• Higher costs associated with operating as a listed entity

• Ongoing investments to boost market competitiveness

• A 34% increase in ordinary shares from the IPO, which will dilute earnings per share in the short term

Despite these challenges, the group expects low-teens sales growth in FY26.

Financial Highlights – FY25 vs FY24 (53/52 Weeks):

Pro-Forma (52/52 Week Comparison):

• Turnover: +10.4%

• Trading Profit: +7%

• Trading Profit Growth (ex-PnP Guarantee impact): +14%

Boxer is betting big on its aggressive store rollout and cost-focused retail strategy to win in South Africa’s tough consumer environment. Despite flat earnings for now, the fundamentals point to strong long-term growth—backed by scale, a proven discount model, and nationwide reach.

{Source: BusinessTech}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com