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Boxer’s sales rise 6.3 per cent while shelf prices fall

South African retailer Boxer increased first-half sales to 24.1 billion rand despite lower selling prices. Trading profit rose 8.1 per cent, and the company expanded its store network. Higher volumes and other income accompanied the earnings growth. Management reported an improvement after the period ended, while warning that oil and diesel pressures continued to limit trading visibility.

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An older shopper pushes a full trolley toward checkout through a bright grocery aisle with a South African flag.

Lower shelf prices accompany sales growth

South African discount retailer Boxer reported higher first-half sales and earnings while expanding its store network. Turnover for the 26 weeks ended 30 August rose 6.3 per cent to 24.1 billion rand from 22.7 billion rand. The period is the first half of its 2027 financial year. Trading profit increased 8.1 per cent to 1.006 billion rand.[1], [2]

Boxer’s own selling prices fell by an average of 2.4 per cent over the half year, while like-for-like sales volumes grew 3.8 per cent. The trading margin increased from 4.1 per cent to 4.2 per cent. The company linked profit growth to an improvement in gross margin and a 34.7 per cent rise in other income, including data and retail advertising activities.[1]

Cash and the interim dividend increase

Headline earnings rose 9.1 per cent to 565 million rand. Boxer declared an interim dividend of 49.93 cents per share, up 10.2 per cent, with payment scheduled for 7 December. Net cash excluding lease liabilities reached 2.3 billion rand, compared with 0.7 billion rand on 1 March. The announced financial results were neither audited nor independently reviewed.[1]

New stores expand the network as fuel pressure persists

Boxer reached its 600th store and opened 24 new locations by the period end. The year-to-date opening count reached 32 by 30 September, against a full-year target of 60. Management reported better trading in the four weeks after the period ended. It also cautioned that oil and diesel prices were putting pressure on customers and its own expenses, limiting visibility over the trading outlook.[1]

References

  1. News sourceBoxer RetailBoxer half-year sales rise 6.3%, trading profit gains 8.1%↩1↩2↩3↩4
  2. News sourceBusiness DayBoxer’s first-half earnings rise as its store network expands↩
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