Pepkor's profits grow after driving value for customers in the tough economic environment

PEPKOR Holdings has announced significant profit growth for the year to September 30, driven by market share gains in retail and a burgeoning fintech segment.

- EDWARD WEST

PEP, the Pepkor Group's largest brand, increased sales by 10.8% (like-for-like up 9.3%) and opened 95 new stores in the year to September 30, 2023. SUPPLIED

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The company reported a 12% increase in revenue, reaching R95.3 billion, and an operating profit rise of 13.2% to R11.1bn.

In a show of confidence, Pepkor has raised its dividend by 9.2%, now standing at 53 cents per share, alongside a remarkable 23.4% growth in normalised headline earnings per share (HEPS), which has reached 161 cents.

CEO Pieter Erasmus said the results were a testament to Pepkor's ability to generate sustainable value, despite a dynamic economic landscape.

In a statement, he noted the company's commitment to addressing customer needs and enhancing affordability and accessibility, saying, "We continue to build a unique position of trust among millions of our customers."

The CEO highlighted the core retail business's market share gains, along with the strategic focus on digital inclusion and fintech which are now yielding fruitful results. Pepkor's gross profit margin has expanded by 150 basis points to 39.8%, while cash generated from operations remained robust at R10.9bn.