Pepkor expects to report higher full-year earnings as its retail operations outperformed the rest of the market with strong trading in a muted macroeconomic and highly competitive consumer environment.
The group expects to report headline earnings per share (HEPS) for continuing operations for the year to end-September of between 153.6c and 167.6c, an increase of 10%-20% compared with a year ago.
The group reported a 12% increase in revenue of R95.3bn on Monday.
Effective strategic execution across the retail portfolio drove substantial growth in fintech, through the expansion of financial services and mobile connectivity, the group said.
The Flash business maintained strong growth momentum, leveraging its presence in the dynamic informal market.
Clothing and general merchandise revenue increased by 8.9% to R66.9bn, while furniture, appliances and electronics revenue increased by 7.2% to R11.8bn.
Its fintech segment continued its strong momentum, increasing revenue by 31.1% to R16.6bn.
Group market share was expanded based on the latest market share data, it said.
Business Day reported in August that the Competition Commission had cleared Pepkor’s takeover of four fashion brands as well as homeware and décor brand Boardmans from Edgars owner Retailability.
The deal, worth about R1.9bn, is expected to expand Pepkor’s store portfolio, sharpen its edge in the adult apparel market and create opportunities to consolidate sourcing, logistics and e-commerce capabilities across the group.
The brands — comprising Legit, Style, Swagga, Beaver Canoe and Boardmans — generated about R2.4bn in revenue in the 2024 financial year across 462 stores in SA, Botswana, Lesotho, Namibia and Eswatini, according to Pepkor.
The Ackermans and Pep owner said the acquisition would add 337 SA stores and 125 stores in neighbouring countries to its clothing and general merchandise division, taking the group’s total store base to about 7,000.
It will also give the company greater brand variety in the aspirational mass-middle clothing segment, complementing its existing discount and value-focused offerings.
Pepkor expects to release its results on November 25.
With Nompilo Zulu
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