Boxer boosts dividend as discount model drives growth

Boxer Retail, which is majority-owned by Pick n Pay, reported a 14.3% increase in trading profit to R2.6 billion for the 52 weeks ended 1 March 2026.

Turnover rose 12.3% to R46.7 billion in the group’s first full financial year as a listed entity following its November 2024 initial public offering (IPO).

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Pick n Pay retained control of Boxer Retail after its listing, while using the IPO to raise capital and unlock value from the business.

Headline earnings per share declined 15% as a consequence of its IPO structure, which resulted in an increase in the number of shares in issue during November 2024, the group said.

Trading profit margin expanded to 5.7% from 5.4% in the prior year on a comparable 52-week basis. The retailer said it gained market share despite “a challenging macroeconomic environment”.

Boxer opened 51 net new stores during the year, bringing its total footprint to 576 stores.

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The new stores contributed 7.8% to total turnover growth excluding like-for-like sales.

The group created 3 400 jobs during the year, taking total employment to 35 314 employees.

Net cash, excluding lease liabilities, improved to R709 million from net debt of R180 million in the prior year.

Boxer said internal selling price inflation, measured on a volume-held-constant basis, was -1.2% for the year, with deflation deepening from -0.7% in the first half to -1.6% in the second half.

This compared with Statistics SA food and non-alcoholic beverages inflation of 4.4% over the same period.

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Trading expenses increased 10.9%, driven mainly by the accelerated rollout of new stores and costs associated with operating as a listed company after the IPO.

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Trading expenses as a percentage of turnover increased to 16.8% from 16.6%.

Chief executive Marek Masojada said: “The Boxer team has delivered an exceptional FY26 performance, underscoring the strength, resilience and continued evolution of our discount operating model, which remains firmly committed to delivering unmatched value and everyday affordability to the communities we serve.”

He said innovation initiatives during the year included the rollout of the “B-Inside” supplier portal and the launch of the retailer’s “B-Media” retail media division.

“[This] … enables targeted product advertising across Boxer’s various media channels. B-Media will enhance our supplier and customer engagement, unlocking a new revenue stream for Boxer,” he adds.

Looking ahead, Boxer said elevated oil and diesel prices were creating uncertainty around the FY27 trading environment, particularly in relation to food inflation, logistics costs and consumer spending.

The group said however it remained confident in the resilience of its discount model and long-term growth strategy.

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