Boxer Retail has announced its audited annual financial results for the 53 weeks ending 2 March 2025, highlighting significant expansion and financial performance.

In FY25, Boxer opened 48 net new stores, increasing its retail estate to 525 locations. This expansion contributed to a 13.2% increase in turnover, reaching R42.3 billion.

Trading profit rose by 9.9% to R2.3 billion, with a trading margin of 5.5%. On a pro forma 52-week basis, turnover increased by 10.4%, and trading profit grew by 7.0%.

Boxer listed on the JSE in November, following its separation from Pick n Pay, which marked the culmination of a two-step recapitalisation plan initiated by the retailer to reduce debt and revitalise its core supermarket business.

Prior to the listing, Boxer was a wholly owned subsidiary of Pick n Pay, which acquired it in 2002. Following the IPO, Pick n Pay retained a 65.6% stake in Boxer, while the remaining shares were sold to institutional investors, raising R8.5 billion

In October 2024, Boxer Retail reached a key milestone with the opening of its 500th store in Port Shepstone, KZN. At the time, the group operated 308 Superstores, 162 Liquor Stores, and 30 Build Stores across South Africa and Eswatini.

The company plans to more than double its footprint over the next seven years, with over 500 additional stores in the pipeline, according to Business Day. The expansion is aimed at increasing market share and strengthening Boxer’s presence in underserved communities.

A key part of the strategy involves targeting South Africa’s informal grocery sector, which accounts for 34% of the total market. Boxer intends to expand in areas with limited access to formal retail, offering a structured and competitively priced alternative to informal traders.

Boxer’s growth plans come as it faces strong competition from Shoprite’s discount chain Usave, which has 480 stores in operation and a target of 43 more by June 2025.

Profit before tax before capital items increased by 4.9% to R1.9 billion. Headline earnings remained flat at R1.4 billion, with headline earnings per share (HEPS) declining by 11.8% due to a 13.4% increase in the weighted average number of shares following the company’s IPO.

Operational Highlights

• The company created 2,900 new jobs, bringing total employment to 31,906.
• Net debt (excluding leases) stood at R180 million, with a net debt to EBITDA ratio of 0.1x.
• Return on Invested Capital (ROIC) was 25.5% (73.6% excluding IFRS 16).

Following its IPO, Boxer declared dividends totalling R9.3 billion to Pick n Pay. The company has not declared a final dividend for FY25 but intends to pay out 40% of headline earnings per share from FY26.

Looking ahead, Boxer said it plans to open at least 25 Superstores and 35 liquor stores annually, aiming for mid-single-digit like-for-like sales growth.

The company anticipates low-teens sales growth for FY26, with a focus on long-term structural growth opportunities.