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The Citizen
12-05-2025
- Business
- The Citizen
Is Boxer taking over, or is trouble brewing?
Boxer said its store growth has had a positive impact on job creation, as it has created 2 900 jobs in 52 weeks. Grocery retailer Boxer has expanded its footprint in South Africa and eSwatini by adding 48 net new stores during 52 weeks ending March 2025. However, its headline earnings for the period remained flat. Now operating 525 stores (320 Boxer Superstores, 175 Boxer Liquor stores, and 30 Boxer Build stores), the retailer plans to open 60 more stores, including 25 superstores and 35 liquor stores, by 2026. This is with the aim of making its discounted offers more accessible to a wider range of customers. Boxer made the announcement on Monday in its first-ever financial results since listing in November 2024. NOW READ: Most of Pick n Pay staff affected by closure of 32 stores will be redeployed How did Boxer perform? The retailer reported turnover growth of 13.2% to R42.3 billion during the 52 weeks and trading profit growth of 9.9% to R2.3 billion. 'This growth was 17.0% if excluding non-recurring non-cash gains on the derecognition of a Pick n Pay financial guarantee in the prior year. 'Comparing year-on-year performance on a pro forma 52-week basis, turnover increased by 10.4%, in line with pre-IPO market guidance, while trading profit increased by 7.0% (to R2.3 billion) and 14.0% when excluding the once-off non-cash gain in the prior year, detailed above.' Boxer's discount model Boxer has positioned itself as the 'People's Champion' due to its lean discount model, prioritising price and efficiency. The retailer said its store growth has had a positive impact on job creation, as it has created 2 900 jobs during the 52 weeks. Boxer now employs 31 906 staff members 'The retailer has invested in its Boxer Rewards Club loyalty programme and attracted over 1.9 million sign-ups since its launch in October 2024.' Marek Masojada, Boxer CEO, said, 'The results today are a testament to our powerful discount model underpinned by a deep understanding of our customers' needs.' NOW READ: Boxer CEO Marek Masojada to address Business@Breakfast event about resilience in retail Bad news Despite the growth, Boxer's headline earnings remained flat at -0.1%, reflecting higher net finance costs associated with the new external debt introduced as part of the pre-IPO balance sheet restructuring, alongside an increase in the effective tax rate, which offset the positive impact of the operational performance. Headline earnings are used to measure the company's profitability on a per-share basis. Boxer's trading costs also grew to R7.06 billion, from R6.08 billion in the previous financial year. Although Boxer's profit margin for the period came in well ahead of the 5.0% target, the retailer expects some pressure on margins going forward. This is due to the extra ongoing costs of being a publicly listed company, some short-term losses as the new Tongaat DC starts operating, and increased spending on product pricing to stay competitive. Shareholders The retailer informed shareholders that the number of Boxer shares is expected to increase by approximately 34% in the next financial year, following the IPO. This will lower earnings per share and is likely to result in a decline in headline earnings per share compared to the 2025 financial year. Boxer has not declared a final dividend for the financial year 2025, and it maintains its intention to pay out 40% of headline earnings per share from the financial year 2026. 'Boxer intends to declare an interim financial year 2026 dividend at the time of the first half of the year result.' NOW READ: Will Boxer listing on the JSE save Pick n Pay?
IOL News
12-05-2025
- Business
- IOL News
Boxer Retail creates 3 000 jobs amid store expansion network in South Africa
Boxer CEO Marek Masojada says the company is well positioned to meet its pre-listing forecast of a dividend at the end of the first half of its 2026 financial year. Image: Supplied JSE-listed Boxer Retail added nearly 3 000 new jobs in the 53 weeks to March 2 after it opened more than 40 new stores and met the financial forecasts it had made to its investors on the JSE months ago. The soft discount retailer added 48 net new stores during the period, bringing its store network across South Africa and Eswatini to 525. The plan is to open another 60 stores—25 superstores and 35 liquor stores—in the new financial year. Additionally, there are plans to expand the distribution centre capacity for the stores, particularly in northern KwaZulu-Natal, CEO Marek Masojada said in an interview with BR. The additional employees brought its full staff complement to close to 32 000 and demonstrated the retailer's growth, and its efforts to uplift the communities and towns where it operates, he said. On the financial front, the retailer outperformed its pre-listing guidance with a 5.4% 52-week trading margin, which is ahead of the 5% forecast made prior to the listing. The maiden published annual financial results — after the biggest listing on the JSE in eight years—delivered a strong performance with consistent market share gains, and the focus in the new financial year is to continue meeting the targets provided before the listing, said Masojada. Turnover grew by 13.2% to R42.3 billion, and trading profit increased by 9.9% to R2.3bn. This growth was 17% when excluding non-recurring non-cash gains on the derecognition of a Pick n Pay financial guarantee in the prior year. Comparing year-on-year performance on a pro forma 52-week basis, turnover increased by 10.4%, in line with pre-IPO market guidance, while trading profit rose by 7%, and 14.0% when excluding the one-off non-cash gain in the prior year. Boxer's discount model, supply chain—which includes six distribution centres currently—and expansion plans, provide it with a strong edge in South Africa's evolving retail landscape, said Masojada. He said that many of their consumers are experiencing significant cost of living increases, even though Boxer managed to keep its selling price inflation flat. This was reflected in more consumers closely examining their monthly or weekly grocery purchases to get more value. The group was able to measure this by tracking the uptake of promotional activity. Boxer's commitment to "Lower Prices Every Day" was reflected in the normalised full-year internal selling price inflation of 0.3%, after adjusting for mix change impacts, which were influenced by promotional activity. Boxer had invested in its Boxer Rewards Club loyalty program and attracted over 1.9 million sign-ups since its launch in October 2024. The club offers a range of benefits, including discounts on repeat shopping trips The loyalty data also provides valuable insights, enabling Boxer to better understand and serve its customers, said Masojada. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ He said Boxer's business model continues to work in the communities where its stores are located. In the past year Boxer's headline earnings remained flat at -0.1%, reflecting higher net finance costs associated with the new about R850m external debt introduced as part of the pre-IPO balance sheet restructuring, alongside an increase in the effective tax rate, which offset the positive impact of the operational performance. Boxer did not declare a final dividend for the 2025 financial year, as indicated in the pre-listing statement. However, the company remained cash generative, was working on reducing debt, and was on target to deliver a dividend at the end of the first half of the 2026 financial year, in line with pre-listing commitments, said Masojada. "We're excited about the opportunities ahead and future growth, Whilst there will be economic pressures, this is where Boxer really thrives, meeting challenges is part of our are resolutely focused on execution to capture growth opportunities," he said.
