Pick n Pay Stores Limited | Summarised audited group annual financial statements for the 2016 financial period -

Result summary

The Group delivered a good performance in 2016. The strongest turnover growth since 2010, an improved gross profit margin, sound expense control and greater operating efficiency all contributed to a further increase in underlying trading margin. The 26.4% increase in headline earnings per share reflects improvement across the business, and progress in executing the Group’s three-stage turnaround strategy.

Group turnover growth of 8.2% for the year is a significant improvement on the 6.1% delivered in 2015. Both like-for-like turnover growth at 3.8% (2015: 3.6%) and the contribution from new stores of 4.4% (2015: 2.5%) were stronger than in the previous year. On a constant currency basis, the top-line momentum achieved by the Group in the first half of the financial year was largely maintained in the second half,

Key financial indicators

	52 weeks 28 February 2016	52 weeks** 1 March 2015	% change
Turnover	R72.4 billion	R66.9 billion	8.2
Gross profit margin	17.9%	17.8%
Other trading income	R971.3 million	R782.9 million	24.1
Trading expenses margin	17.2%	17.2%
Trading profit	R1 516.3 million	R1 240.1 million	22.3
Trading profit margin	2.1%	1.9%
Profit before tax	R1 473.5 million	R1 205.2 million	22.3
Profit before tax margin	2.0%	1.8%
Profit for the period	R1 065.4 million	R861.7 million	23.6
Basic earnings per share	219.11 cents	178.79 cents	22.5
Headline earnings per share*	224.04 cents	177.26 cents	26.4
Total annual dividend per share	149.40 cents	118.10 cents	26.5
HEPS excludes capital profits and losses on the disposal and impairment of assets, which accounts for the difference in the year-on-year increase between HEPS and basic EPS. *Prior year amounts restated and/or reclassified, refer to note 10 of the summarised audited Group annual financial statements.