Pick n Pay has published its annual financial results for the year ending 3 March 2019.<\/p>\n
Despite a challenging trading environment, the company said that it saw market-leading sales performance with turnover up 7.1% (7.4% in South Africa).<\/p>\n
Headline earnings per share grew 18.0%, with diluted HEPS up 18.8%. Profit before tax (PBT) was up 17.3%, with the PBT margin improving from 2.2% to 2.4%.<\/p>\n
There was a total annual dividend of 231.10 cents per share, up 22.4%, which equated to over R1 billion for shareholders.<\/p>\n
\u201cIn a challenging trading environment, the company has continued to deliver on the objectives set out in its long-term plan: a relentless focus on improving cost and operational effectiveness enabled the group to invest in a winning customer offer through lower prices, more attractive promotions, better and more innovative products, compelling value-added services, and brighter and more modern stores \u2013 without sacrificing earnings growth,\u201d it said.<\/p>\n
\u201cSteps taken to reduce costs in 2018 enabled the company to invest decisively in the customer and outperform the market in FY2019.<\/p>\n
\u201cAcross the year, the company reduced prices on thousands of products, particularly on fresh produce, meat, and commodities and delivered a sustained programme of fewer, deeper and more effective promotions. This produced exceptional value for customers, with internal selling price deflation of 0.3% against CPI food of 3.4%.\u201d<\/p>\n
\u201cSuccessful execution of this plan was evident in the company\u2019s market-leading turnover growth of 7.1%, and like-for-like turnover growth of 4.8%. The company\u2019s core South Africa division \u2013 comprising Pick n Pay and Boxer \u2013 delivered turnover growth of 7.4%.\u201d<\/p>\n
Pick n Pay Store account<\/strong><\/p>\n The retailer also noted that its Pick n Pay Store account now has 125,000 active customers \u2013 an increase of 25% year-on-year.<\/p>\n Launched in September 2017, the service enables customers to pay for their goods at a later date on a card with no joining fees and low-interest rates.<\/p>\n The account is accessed through the customer\u2019s Smart Shopper card, with the credit provider carrying all associated funding costs and credit risk.<\/p>\n It offers the most affordable form of credit in the market, with a 55 days free credit payment option, no joining fee, no hidden administration fees and the lowest monthly fee in the market, the retailer said.<\/p>\n Pick n Pay said that customer feedback confirmed that customers are switching to the Pick n Pay card from other more expensive forms of credit, and many of its customers avoid all interest charges by paying off their accounts in full each month.<\/p>\n