Pick ‘n Pay, one of South Africa’s leading supermarket chains, partially owned by the billionaire Ackerman family, has revised its earnings forecast for the first half of its 2024 fiscal year after a thorough reevaluation of its financials, signaling significant challenges in its financial outlook.
In a follow-up to its announcement on Oct. 2, 2023, the company made substantial adjustments to its financial projections after reevaluating its 49 percent investment in TM Supermarkets in Zimbabwe.
The retailer now expects a loss per share in the range of R1.281 ($0.068) to R1.092 ($0.0579), compared to the previously anticipated loss per share of R0.982 ($0.0521) to R0.793 ($0.0419) for the 26 weeks ending on Aug. 27, 2023. The diluted loss per share has also been adjusted to R1.278 ($0.068) and R1.089 ($0.0579).
In response to this update, Pick ‘n Pay’s shares on the Johannesburg Stock Exchange experienced a decline, closing at R29.64 ($1.575) per share. This represents a 4.36-percent decrease from its opening price on Tues., Oct. 17.
This decline further contributed to the downward pressure on the company’s market capitalization, which now stands below the $800-million mark.
Pick ‘n Pay, established in 1967, is a prominent player in South Africa’s retail sector and ranks as the nation’s second-largest retailer, trailing Shoprite Holdings. The company operates an extensive network of more than 2,000 stores spread across eight African countries.
South African billionaire Ackerman family owns 25.5 percent of Pick ‘n Pay
The Ackerman family, known for their substantial wealth, expansive real estate ventures, and diverse private holdings, holds a significant 25.53-percent stake in Pick ‘n Pay, equivalent to 124,677,238 shares in the retail giant.
The latest announcement follows a series of challenges faced by Pick ‘n Pay, underlining the ongoing struggles within the retail sector. Investors and analysts will closely monitor the company’s efforts to navigate these challenges and restore profitability.
