Boxer Retail has reported a solid set of interim results and is on track to meet its goal of opening 60 new stores for the full year. The group announced a 5.3% increase in headline earnings to R518 million for the 26 weeks ending in August. However, the increase in the number of shares following its initial public offering (IPO) resulted in a 30.3% decline in headline earnings per share (HEPS) to 114.28 cents.
This decline in HEPS was attributed to a 51.1% rise in the weighted average number of ordinary shares due to the issuance of 157.4 million shares during the IPO. Despite this, turnover grew by 13.9% to R22.5 billion, and trading profit increased by 15.1% to R931 million, maintaining a trading margin of 4.1%.
The stable trading profit margin, despite additional expenses related to being a listed entity, was supported by strong trading results and growth in commissions and other income. Boxer has begun leveraging data from its new customer loyalty program, the Boxer Rewards Club, which has contributed to these positive outcomes.
Boxer considers the 5.3% rise in headline earnings a strong result, especially given the impact of costs associated with the IPO and a 79.1% increase in net finance charges to R231 million due to balance sheet restructuring at the time of the IPO. The group successfully opened 25 new stores in the first half of the year.
Despite facing low selling price inflation, Boxer achieved like-for-like volume growth, which positively influenced the interim results and suggests a promising outlook for the full year. The company noted that trading momentum has picked up in July and August and has remained strong in the six weeks since the reporting period ended.
Looking ahead, Boxer stated, “While recent trading is encouraging, the second half of the 2026 financial year will largely be driven by trading over the critical Black Friday and festive periods.” The group also declared its inaugural interim dividend of 45.3 cents per share.