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Fri 12 Jun 2026
Close: 5 213c 
Day's move: 89c (1.74%)
Volume: 1 423 452
Trades: 4 274
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Continuing operations
Revenue - sale of merchandise went up to R67.5 billion (R65.2 billion) whilst gross profit increased to R7.1 billion (R7.0 billion). However, operating profit dipped to R740.5 million (R1.4 billion). Profit after taxation attributable to owners took a knock to R291.7 million (R768.1 million). Furthermore, headline earnings per share came to 199.9cps (433.8cps).
Dividend
The Board has resolved not to declare an interim dividend for the Current Period (Prior Period: nil cents per share). The Group's intention is to return to paying dividends. Reinstatement will be considered once HEPS is on a sustained recovery trajectory and leverage is trending toward the medium-term target range of 1.5 to 2.0 times. This position will be reassessed at each reporting period, taking into account prevailing macroeconomic and operational dynamics.
Group outlook
The Group enters H2 FY2026 with identified execution priorities, stabilising indicators in KZN and a simplified portfolio focused primarily on Southern Africa and Ireland. This follows the appointment of Reeza Isaacs and Megan Pydigadu as Group Chief Executive Officer and Group Chief Financial Officer, respectively, effective 1 March 2026.
The trading environment remains constrained. Food inflation in South Africa, while softening to 3.4% in March 2026, is expected to accelerate modestly due to transport costs and fuel pressures. Successive fuel cost increases in H2 FY2026 will raise distribution and logistics costs across the network. The South African Reserve Bank increased the repo rate by 25 basis points in May 2026. In Ireland, consumer confidence remains at a three-year low and further European Central Bank rate increases are expected, representing a headwind for both funding costs and consumer demand.
Against this backdrop, the Group's H2 FY2026 performance will be driven by execution rather than a macro tailwind. The non-recurrence of Black Friday overinvestment, progressive KZN recovery, improved service levels and the initial impact of the commercial transformation workstreams are expected to produce a materially improved H2 FY2026 result when compared to the Current Period. The medium-term priority is the restoration of Southern Africa operating margins, sustained deleveraging and the rebuilding of a platform for long-term shareholder returns.
Post-period, early trading in April 2026 and May 2026 shows continued recovery in KZN and an improving gross profit margin trajectory in the core grocery and liquor business, albeit with year-on-year comparatives affected by timing of Easter wholesale purchases.
The Board remains confident in the Group's ability to deliver sustainable operating performance and long-term value creation.
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| Closing price data source: JSE Ltd. All other statistics calculated by ProfileData. |
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