Measured progress in a challenging market

Pick n Pay delivered a substantially improved profit performance for the half-year ending 31 August 2014, demonstrating sustained progress against our plan to improve the business.

A determined focus on cost control and operating efficiency is strengthening our business and is continuing to drive our profit growth in a challenging trading environment. Trading profit increased by 21.7% on last year. Improved working capital management resulted in stronger cash balances and a considerable saving on net interest paid, driving profit before tax up 34.9% on last year. The profit before tax margin is 1.1%, up from 0.9% last year.

Headline earnings per share are 31.0% up on the same period last year. The Group declared an interim dividend of 9.40 cents, up 30.6% on last year.

	26 weeks to 31 August 2014	26 weeks to 1 September 2014	% change
Total till sales	R37.4 billion	R35.0 billion	7.1
Turnover	R32.1 billion	R30.1 billion	6.8
Gross profit margin	17.7%	17.9%
Trading profit	R385.7 million	R317.0 million	21.7
Trading profit margin	1.2%	1.1%
Profit before tax	R365.9 million	R271.3 million	34.9
Profit before tax margin	1.1%	0.9%
Basic earnings per share	26.72 cents	19.86 cents	34.5
Headline earnings per share	26.51 cents	20.24 cents	31.0
Interim dividend per share	9.40 cents	7.20 cents	30.6

Measured progress in a challenging market

Key financial indicators