Due to a double-digit increase in revenue, Pick ‘n Pay, a leading South African supermarket chain owned in part by the affluent Ackerman family, saw its profits soar above $19 million in the first half of its fiscal year in 2023.
Despite the disruption to its operating environment, Pick ‘n Pay’s profits in the first half of its 2023 fiscal year rose by 17.5 percent to R348.8 million ($19.02 million) from R296.8 million ($16.2 million) in the first half of its 2022 fiscal year, according to figures in the group’s recently published financial results.
The retailer’s profit increased by double digits, from R46.02 billion ($2.51 billion) to R51.3 billion ($2.8 billion), as it delivered a positive performance in its first trading period under a new multi-year strategic plan known as the “Ekuseni strategic plan.”
The strong profit and revenue growth reflect the normalization of its operating environment following the July 2021 civil unrest and COVID-19 liquor trading restrictions last year, which had a negative impact on base year sales.
The board of directors of Pick ‘n Pay declared an interim gross dividend of R0.4485 ($0.0245) per share from its income reserves as a result of the company’s strong financial performance during the period under review.
Gareth Ackerman, chairman of Pick ‘n Pay, stated that the initial results obtained under the Ekuseni strategic plan in a short period of time have been very encouraging. He also stated that the retailer will continue to support customers through an economy that is becoming more challenging due to rising inflation, severe load shedding, and other difficulties.
According to him, the division of Pick ‘n Pay’s business into the three grocery banners Pick ‘n Pay, QualiSave, and Boxer is the best tactical response to current market and economic conditions. Each banner is also tailored to meet the needs of its specific target market.
Pick ‘n Pay is South Africa’s second-largest retailer. Under the leadership of members of the Ackerman family, which includes Raymond Ackerman, who founded the retailer in 1967, the Cape Town-based retail behemoth operates more than 2,000 stores across eight African countries.
Gareth Ackerman, Raymond Ackerman’s son, and other family members own a significant 25.53-percent stake in the leading retailer, or 124,677,238 issued shares.