Pick n Pay’s Turnaround Takes Shape: Boxer Listing and Strong Shareholder Support Drive Growth

Pick n Pay’s Recapitalisation Plan: Two Big Steps Forward

Pick n Pay has successfully concluded its ambitious two-step recapitalisation plan, marking a pivotal moment for the retailer’s recovery and long-term growth strategy. The plan, which included a rights offer and the public listing of its Boxer brand, raised over R12 billion and fortified the group’s financial position after a challenging period.

1. Rights Offer:
   In August 2024, Pick n Pay raised R4 billion through a rights offer that was more than double oversubscribed. This overwhelming response underscored shareholder confidence in the group’s strategy.
2. Boxer’s Listing:
   On November 28, 2024, Boxer was listed on the Johannesburg Stock Exchange (JSE), with shares placed at R54 each. The offering raised R8.5 billion and was also multiple times oversubscribed, with shares trading as high as R63 on opening day. Boxer’s market capitalization now exceeds R28 billion, surpassing Pick n Pay and SPAR, further cementing its value.

The capital raised through the recapitalisation has allowed Pick n Pay to:

• Repay all long-term debt and convert interest costs into interest earnings.
• Establish cash reserves to fuel store expansions, refurbishments, product range diversification, technology upgrades, and staff training.

Pick n Pay retained over 60% of Boxer, a strategic move that maintains the synergy between the two brands while leveraging Boxer’s robust market performance.

“Successfully concluding our recapitalisation plan in such a short space of time is an extraordinary milestone,” said Pick n Pay CEO Sean Summers. He added that the turnaround remains a multi-year process but praised the early improvements in the group’s core performance.

Despite the success of the recapitalisation, Pick n Pay continues to face financial hurdles.

• In the 2024 financial year, the company swung from a R1.17 billion profit to a R3.2 billion net loss, marking a 373% drop in profitability.
• The interim results for August 2024 showed a R827.4 million loss, reflecting a 45% decline year-on-year.
• The group’s debt levels had breached covenants, pushing it into technical insolvency for the first time in its listed history.

CEO Summers acknowledged that the financial performance would likely worsen before stabilizing but expressed optimism that the worst is behind the group.

With a solid recapitalisation plan now complete, Pick n Pay is strategically positioned for recovery. Early signs of improvement in Q2 of the 2025 financial year indicate that the group’s turnaround strategy is gaining traction.

The recapitalisation not only restored Pick n Pay’s financial stability but also paved the way for sustainable growth through investment in infrastructure, innovation, and customer-centric initiatives.

Pick n Pay’s bold moves signal a renewed focus on growth and resilience. The Boxer listing and shareholder support have provided the financial backbone needed to navigate ongoing challenges and emerge as a stronger player in South Africa’s retail market.

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