Unrest costs PnP almost R1bn

Supermarket group Pick n Pay (PnP) says the July unrest cost it R930-million in lost sales. The company is the first food retailer to report on the effect the July unrest had on performance, according to a recent article by MoneyWeb.

Highlights below:

  • Pick n Pay’s two largest distribution centres in KwaZulu-Natal (KZN) were looted
  • 212 stores or 10% of the group’s estate were damaged by the looting in KZN and Gauteng
  • The booze bans as a result of lockdown restrictions cost the company R800-million
  • Insurance will cover the some of the loss
  • PnP recorded subdued growth in sales of 4.1% to R46-billion and a 3.4% decrease in gross profit to R8.4-billion, lowering its gross profit margin to 18.2% of turnover for the six months ending August 29, 2021.
  • The group reported a 40% increase in headline earnings per share (Heps) in the period to 61.28 cents (2020: 43.78 cents).
  • This increase was underpinned by a strong performance by its Boxer and Clothing businesses, pleasing momentum in omnichannel offers and effective management of working capital and capital investment
  • The group’s online on-demand delivering service – asap! – has grown by 200% since it was launched in July

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