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 21.8% 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 35.0% on last year. The profit before tax margin is 1.1%, up from 0.9% last year.

Headline earnings per share are 32.3% up on the same period last year. The Group declared an interim dividend of 19.60 cents, up 32.4% 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	R386.6 million	R317.5 million	21.8
Trading profit margin	1.2%	1.1%
Profit before tax	R366.8 million	R271.8 million	35.0
Profit before tax margin	1.1%	0.9%
Basic earnings per share	54.39 cents	40.05 cents	35.8
Headline earnings per share	53.98 cents	40.81 cents	32.3
Interim dividend per share	19.60 cents	14.80 cents	32.4

Measured progress in a challenging market

Key financial indicators