Boxer Retail Limited, South Africa’s leading grocery discounter, today announced its interim financial results for the 26 weeks ended 30 August 2026 (H1 FY27), demonstrating the continued strength of its value proposition with increased market share and earnings growth despite increased economic pressure.

Highlights include:

• 600th Boxer store opened – well on track for targeted store openings in FY27
• Turnover growth of 6.3% with implied like-for-like volume growth of 3.8%
• Other income up 34.7% year-on-year, driven by B-Inside data insights growth and B-Media retail media launch
• Trading profit growth of 8.1% with the trading profit margin up 0.1% year-on-year to 4.2%
• Profit before tax and capital items up 10.6% to R774 million
• Net cash (excluding lease liabilities) of R2.3 billion, up from R0.7 billion at 1 March 2026
• Interim dividend declared of 49.93 cents/share, at a pay-out ratio of 40.0% of headline earnings per share

Boxer grew turnover by 6.3% to R24.1 billion in H1 FY27. While growth moderated from the 10.9% reported in H2 FY26, this was amid increased economic pressure on consumers, particularly following fuel price increases from May 2026, and deeper selling-price deflation. Despite these headwinds, Boxer continued to gain market share, reflecting customer demand for its value proposition.

Internal selling-price deflation was -2.4%, compared with -0.7% in H1 FY26 and -1.6% in H2 FY26, reflecting Boxer’s continued investment in value for customers and the commodity-weighted nature of its product mix. Boxer’s selling-price movement remained well below Statistics SA food and non-alcoholic beverage inflation for the period of +2.0%.

Against this backdrop, like-for-like sales increased by 1.4%, with healthy implied like-for-like volume growth of 3.8%. Continued market share gains and positive volume growth demonstrate the resilience of the Boxer model and the strength of its customer offering in a constrained consumer environment.

During the period, Boxer reached its 600-store milestone, well on track against its target of 60 new stores for FY27. The Company opened 24 stores during the period, comprising nine Boxer Superstores and 15 Boxer Liquor stores. Momentum continued into the second half and as at 30 September 2026, Boxer had opened 32 stores year-to-date.

Despite the challenging trading environment, Boxer delivered a resilient financial performance. Profit before tax and capital items increased 10.6% to R774 million, while trading profit increased 8.1% to R1.0 billion. The trading profit margin increased by 0.1 percentage points to 4.2%.

The trading profit margin expansion was supported by a 0.5 percentage point improvement in gross profit margin, with strong margin mix management and economies of scale more than offsetting higher diesel costs and the increased price investment. This was complemented by strong growth in other trading income, with commissions and other income increasing by 34.7% to R260 million. The increase was driven by continued growth in value-added services, a higher contribution from B-Inside, Boxer’s supplier portal, and the initial contribution from B-Media, the Group’s retail media offering launched earlier this financial year.

Trading expenses increased 10.2% to R4.2 billion, primarily reflecting the continued store rollout, as well as higher energy and advertising costs.

Headline earnings increased 9.1% to R565 million, while headline earnings per share increased 9.2%.
Boxer also strengthened its balance sheet during the period, with net cash, excluding lease liabilities, increasing to R2.3 billion from R0.7 billion at 1 March 2026.

Marek Masojada, Boxer CEO, says the results demonstrate the continued strength of its value proposition at a time when customers are under continued purchasing power pressure:

Ours is a resilient business in a challenging and uncertain environment. As the People’s Champion, our focus is clear: we want to keep delivering great value, and we will do that by continuing to invest in price, expanding our store footprint to underserved communities, and maintaining a disciplined approach to costs. These results reflect the commitment of our people and the strength of our leadership team, whose collective efforts continue to drive the business forward, grow market share and strengthen our position in the discount retail market, while meeting the needs of our customers.

We have seen some improvement in trading momentum in the four weeks since the end of the reporting period, which gives us confidence as we enter the second half of the year. We continue to see strong demand for the value we offer, but are mindful of the broader economic environment, elevated oil and diesel prices, and the uncertainty around food inflation.

Looking ahead, our focus remains firmly on the significant long-term opportunity ahead of us. We have a clear, strong value proposition, and significant room to expand our store footprint and customer reach. Our priority is to execute consistently against that opportunity, and continue to offer our customers the best value possible, particularly when household budgets are under pressure.