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The South African Ackerman family, owners of a significant 25.53-percent stake in Pick ‘n Pay, is set to receive R174.92 million ($9.57 million) in dividends from the retailer despite declining earnings.
Despite the company posting a decline in earnings for its 2023 fiscal year, the dividend payout represents a significant portion of the R692 million ($37.9 million) gross dividend proposed by Pick’n’Pay’s board of directors.
The Ackerman family is one of the richest families in South Africa, owning a 25.53-percent stake in the retailer, worth $260 million.
Under the leadership of Raymond Ackerman, who founded the company in 1967, Pick ‘n Pay operates more than 2,000 stores across eight African countries.
The leading retailer has maintained its position as one of the most profitable businesses in South Africa, thanks in no small part to the Ackerman family’s leadership.
Despite a challenging year for the company, with increased costs due to load shedding in the country, Pick ‘n Pay posted a total profit after tax of R1.169 billion ($64.1 million) at the end of its 2023 fiscal year.
This figure represents a decline of only 3.7 percent from the previous year, and the company maintained a dividend coverage ratio of 1.3x pro forma earnings.
The South African billionaire Ackerman family has already received an interim dividend of R55.85 million ($3.06 million) and will receive the final dividend on June 5, 2023, bringing their total dividend earnings for the year to R230.8 million ($12.63 million).
This figure represents a decline from the previous year’s dividend payout of R231.15 million ($15.04 million), which can be attributed to the decrease in earnings for the company.
Despite declining earnings, the Ackerman family remains committed to Pick’ n Pay and its success. They continue to support the company’s growth and expansion, which has seen the retailer become a household name across Africa.
The R692 million ($37.9 million) dividend payout is a testament to the company’s commitment to rewarding its shareholders, even in challenging times.
