Pick n Pay Stores Limited year end results 2014

Clear plan: delivers stronger operations

We are a stronger business than we were 12 months ago. We are better positioned to strengthen and grow our core South African business, and actively explore new strategic opportunities in the rest of Africa.

Despite the more challenging trading environment, the Group grew at every level, serving more customers than last year, in more stores and with higher value baskets.

The Group opened 111 new stores during the year and closed 26 under-performing stores, adding 3.4% net new space. We grew our Pick n Pay and Boxer brands across a variety of retail formats, ranging from stores which serve lower-income communities through to our new Waterfront store in Cape Town.

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Key financial indicators

364 days 
364 days  
(pro forma)*
pro forma 

368 days 

Total till sales  R73.0 billion  R67.8 billion   7.6  R68.5 billion  6.5 
Turnover  R63.1 billion  R58.6 billion   7.7  R59.3 billion  6.5 
Gross profit margin  17.5%  17.5%     17.4%   
Trading profit  R1 010.3 million  R751.7 million   34.4  R852.4 million  18.5 
Profit before tax  R833.1 million  R708.2 million   17.6  R808.9 million  3.0 
Basic earnings per share  122.01 cents  100.50 cents   21.4  115.14 cents  6.0 
Headline earnings per share**  138.51 cents  96.66 cents   43.3  111.30 cents  24.4 
Total annual dividend per share  92.30 cents      84.00 cents  9.9 
The Group implemented a 52-week financial reporting calendar in February 2013. The 2014 financial year consists of 364 trading days of turnover and related gross profit, compared with 368 days in the prior year. Reviewing turnover and gross profit on a comparable 364-day basis is more meaningful and as such, the results in this commentary are presented on a comparable pro forma basis (unless otherwise stated). For a detailed explanation on the new financial calendar and its impact on the comparability of performance, please refer to note 2 of the summarised financial information presented here.
**  The difference in the growth in headline earnings per share against basic earnings per share is the exclusion of profits and losses of a capital nature in the calculation of headline earnings. Capital losses net of tax of R78.9 million are added back to headline earnings in 2014 (mainly comprising the impairment of intangible assets), against a deduction net of tax of R18.4 million of capital profits in 2013. Please refer to┬ánote 6 of the summarised financial information presented here.