Staff Writer
Pepkor Holdings Limited reported a 12.9% increase in group revenue from continuing operations to N$29.9 billion for the three months ended 31 December 2025.
The growth was supported by acquisitions, strong credit growth, and improved trading across several divisions.
Excluding acquisitions completed during 2025, group revenue increased by 8.3%.
Group sales rose by 10.6% for the quarter, or 5.2% excluding acquisitions, while like-for-like sales increased by 3.0%.
In Southern Africa, excluding PEP Africa and Avenida, like-for-like sales grew by 2%. This followed a strong comparison base of 9.6% growth in the same quarter last year.
Outside Southern Africa, performance improved sharply. Like-for-like sales at PEP Africa and Avenida increased by 12.7% in constant currency and by 16.7% in rand terms.
This compared with growth of 4.4% in constant currency and a decline of 14.6% in rand terms in the prior-year quarter.
During 2025, the group closed 46 Ackermans Woman standalone stores. Excluding this format, Ackermans sales increased by 1.6% during the quarter.
In the Speciality division, the recently acquired Legit, Swagga and Style businesses were integrated during the period, with Legit performing strongly.
Excluding these acquisitions, sales in the division increased by 7.7%.
The closure of Shoe City, which consisted of 113 stores, was completed in January 2026 at costs below expectations. Shoe City is classified as a discontinued operation.
Pepkor Lifestyle recorded sales growth of 13.7%, which included the non-South African component of the OK Furniture and House & Home acquisition. Excluding the acquisition, sales increased by 4.5%, supported by strong performance in tech.
Home delivered weaker results due to a high comparison base. The acquisition of the remaining South African component of OK Furniture and House & Home is still underway and is expected to take several months to complete.
Group cash sales increased by 7.4%, while credit sales rose by 26.9%. Credit’s share of group sales increased to 18% from 16% a year earlier.
During the quarter, Pepkor opened 67 new stores and added 537 stores through acquisitions. On a net basis, the retail store base expanded by 592 stores to 6,637 stores as at 31 December 2025.
The group said it remains on track to open between 250 and 300 new stores organically during the 2026 financial year.
The Fintech segment recorded revenue growth of 25.4% to N$4.8 billion. Financial services revenue increased by 47.6% to N$2.4 billion, lifting its contribution to group revenue.
Retail credit growth continued under disciplined risk management. Abacus Insurance doubled revenue during the quarter, while FoneYam cellular device rentals recorded strong demand, with active customers increasing to 2.3 million from 1.2 million a year earlier.
The Flash business recorded revenue growth of 9.5% to N$2.5 billion. Total throughput increased by 20.8% to R17.6 billion, driven by growth in the aggregation division.
In the first three weeks of January 2026, group sales increased by 12.3%, or 8.3% excluding acquisitions.
The performance was supported by a strong back-to-school trading period.
Despite continued pressure on consumers and a competitive retail environment, Pepkor said it remains cautiously optimistic about performance for the rest of the financial year as the comparison base normalises, supported by its brand portfolio, fintech operations, and customer value offerings.
Caption
Pepkor reported that in Southern Africa, like-for-like sales grew by 2%, compared to a high base of 9.6% growth recorded in the same quarter last year.
- Photo: Contributed
