The South African Ackerman family has suffered a loss of R1.01 billion ($69.2 million) from their joint stake in Pick n Pay.
Shares in the leading retailer on the Johannesburg Stock Exchange have lost more than one-eighth of their value since May 31. This came as investors engaged in share-repricing despite the company having posted resilient financial results at the end of its 2021 financial year.
The Ackermans, who jointly own a stake of 128,203,415 ordinary shares in the retail giant, have seen the market value of their shares decline by R1.05 billion ($71.5 million) in 57 days on the back of a double-digit decline in the retailer’s shares.
Pick n Pay is the second-largest supermarket chain store in South Africa behind the retail behemoth Shoprite, and one of the leading retailers in Africa with about 2,000 stores. It recently opened its first store in Nigeria in March 2021, expanding its operational footprint to eight countries.
At the end of its 2021 financial year, the retailer saw its profits decline by 19.1 percent to R967.1 million on the back of an eight-percent growth in trading expenses, which outpaced its gross profits and revenues by 4.7 percent and 4.3 percent, respectively. In contrast, its turnover grew by 4.3 percent.
As of press time, 12:20 PM (UTC), July 29, Pick n Pay shares were trading at R51.10 ($3.492), 13.4-percent lower than its price of R59.00 (4.032) on May 31, 57 days ago.
Aside from founding the giant retailer and holding a controlling stake in the company, family members Raymond Ackerman, Wendy Ackerman, Gareth Ackerman, Jonathan Ackerman and Suzanne Ackerman-Berman all have vital roles in the business.
Data compiled by Billionaires Africa revealed that the market value of the family’s joint equity stake in Pick n Pay has declined from R7.56 billion ($516.90 million) on May 31, to R6.55 billion ($447.66 million ) as of press time 10:20 AM (UTC), July 29.
This translates to a $69.2-million (R1.01 billion) loss for the family in 57 days.
