• Trading profit up 15.8% to R641.5 million on a normalised basis
• Headline earnings per share up 11.6% on a normalised basis
• Diluted headline earnings per share up 13.1% on a normalised basis
• Turnover growth of 5.1% to R39.3 billion
• Internal inflation restricted to 3.6%, well below CPI food inflation of 6.9%
• R500 million investment in lower prices, beginning in March with price cuts across 1 300 products
• 63 new stores opened: 40 company-owned stores and 23 franchise stores
• Employee costs improving as a percentage of turnover from 8.6% to 8.3%
• Grocery centralisation increased to 73% in Inland Region and 89% in Western Cape
• Interim dividend of 33.40 cents per share, up 11.7% on H1 last year
• Pick n Pay voted most trusted retailer by South African consumers

Pick n Pay today announced its ninth consecutive period of profit and turnover growth. Headline earnings per share grew 11.6% on a normalised basis, excluding the impact of a voluntary severance programme. Turnover grew 5.1%, reflecting a difficult trading environment and significant investment in lower prices for our customers.

Commenting on the result, CEO Richard Brasher said:

“This has been an important six months for Pick n Pay. Nine consecutive periods of profit and turnover growth demonstrate that we have the right plan to modernise our business, reduce our costs and deliver better value for customers.

“Six months ago, I described the low-growth economy as the new normal. To succeed in this new normal, we had to accelerate our plan.

“We completed Pick n Pay’s first company-wide voluntary severance programme, reducing roles and functions across the company by 10%. We modernised our Smart Shopper loyalty programme, delivering more relevant savings for customers and saving on our own costs. We launched a programme to buy better from our suppliers and deliver better value to customers.  And we made further progress in centralising our supply chain across the country.

“Each of these actions has made us a better business. Lower operating costs are giving us the headroom to reduce prices. We have generated R1 billion to invest in the customer at precisely the time that customers most need it. We cut prices on 1,300 everyday grocery products in March and plan to cut more prices over the next six months.

“Our turnover growth in the first half was constrained by the challenging trading environment and our investment in lower prices to customers. But we have the right plan to succeed in tougher times. By taking action over the past six months, we are more firmly and confidently positioned for future success.

“I want to thank colleagues across our business for their positive response over the past six months.”