Discount retailer Boxer has declared its first annual dividend since listing on the JSE in November 2024, as a post-IPO restructuring helped swing its balance sheet into a net cash position.
The group on Monday reported net cash of R709m for the year to end-March, compared with net debt of R180m a year earlier. The group declared a final shareholder payout of 95.37c per share, taking its total dividend for the year to 140.67c.
However, HEPS fell 15%, as the number of shares increased significantly after the IPO, Boxer said.
“HEPS declined 15% as a consequence of a 33.2% increase in the weighted average number of ordinary shares,” it said.
Turnover rose 12.3% on a comparable 52-week basis to R46.7bn, while trading profit increased 17.3% to R2.64bn. Margins improved to 5.7%, even with higher costs linked to the IPO and expansion.
This means the retailer generated about R128m in sales each day over the year while earning about R7.3m in trading profit. Despite this growth, Boxer continues to operate on thin margins, keeping only R5.70 for every R100 spent in its stores.
The group pointed to internal selling price deflation of 1.2%, indicating it absorbed cost pressures to keep prices low, effectively passing on millions in savings to consumers over the year.
Growth was driven by expansion, with 51 new stores opened and 3,400 jobs created, supporting market share gains in a constrained consumer environment.
Boxer warned rising oil and diesel prices could fuel food inflation and increase logistics costs and consumer spending, creating uncertainty for the year ahead, even as the group continues to focus on long-term growth.
“Turnover growth for the first nine weeks of FY27 was slightly below that achieved over H2 FY26, with continued internal selling price deflation. Boxer expects its selling prices to gradually rise through the remainder of FY27 as the impacts of the war flow through into the supply chain,” Boxer said.
“Irrespective of these short-term dynamics, Boxer will continue to build the business for the long term by remaining resolutely focused on providing value to its customers. Boxer has a strong track record of managing effectively through periods of disruption and will remain focused on execution to capture its long-term growth opportunity,” it said.
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