Pepkor has seen record profit growth in its financial results for the 2025 financial year, with the group also breaching the 6,000-store mark across its global operations.
The group said that the profit growth was underpinned by strong operational performance as well as the successful execution of a number of strategic initiatives.
“These initiatives have entrenched the group’s unique business model, leveraging its physical retail footprint to fuel a digital ecosystem anchored in solving customer needs,” it said.
“The group’s results evidence delivery against our objectives of consistent, quality earnings growth, while unlocking scalable future growth opportunities from embedded fintech, telecommunications and informal market adjacencies.”
The group’s revenue increased by 12.0% to R95.3 billion, with the core Clothing and General Merchandise (CGM) segment increasing its revenue by 8.9% to R66.9 billion.
Notably, profit for the year grew by 170% from R2.1 billion to R5.6 billion, with the group benefitting from lower capital items and a higher gross profit.
The group’s total basic earnings per share rose 153.0, marking an increase of 171.3%
The group’s headline earnings per share increased by only 14.8% to 161 cents, as the group did not account for non-recurring and extraordinary items in the prior year.
On a normalised basis, HEPS increased by 23.4% when excluding the benefit of a lower effective tax rate applicable in the prior year. The group’s interim dividend rose by 9.2% to 53.0 cents per share.
| Metric | 2024 | 2025 | Change |
| Revenue (Rm)E | 85 136 | 95 340 | 12.0% |
| Profit for the year (Rm) | 2 083 | 5 636 | 170.6% |
| Basic earnings per share (cents) | 56.4 | 153.0 | 171.3% |
| Headline earnings per share (cents) | 148.5 | 161.0 | 16.0% |
New stores
“These initiatives have entrenched the group’s unique business model, leveraging its physical retail footprint to fuel a digital ecosystem anchored in solving customer needs,” it said.
“The group’s results evidence delivery against our objectives of consistent, quality earnings growth, while unlocking scalable future growth opportunities from embedded fintech, telecommunications and informal market adjacencies.”
Pepkor’s core retail business outperformed the market, with it seeing strong trading and market share gains.
The group also expanded its reach across both physical and digital channels, surpassing 6,000 retail stores and adding more than 10 million customers across its digital offerings.
The group’s acquisition of Choice Clothing was implemented on 1 June 2025 and marked the group’s entry into the semi-formal off-price retail segment.
Pep said that Choice operates 105 stores with the potential to expand to over 300 stores.
Although Choice will remain a standalone entrepreneurial business, Pep said it will benefit from the group’s capability and infrastructure in sourcing, supply chain and financial services.
The group also launched the Ayana brand in Speciality to target the fashion-focused women’s mid-market segment.
Ayana is currently using 32 existing standalone Ackermans Women’s store sites in addition to launching an online offering.
The group’s Flash business saw strong momentum within the informal and fintech market, leveraging its extensive trader network and fintech ecosystem to accelerate growth and profitability further.
Pep noted that the consumer and operating environment showed notable improvement compared to the prior year.
The positive trend was supported by lower inflation, interest rates, and unemployment rates; modest GDP growth; enhanced port facilities; the two-pot system; and improved electricity availability.
“However, some structural challenges remain, including ageing public infrastructure and rising spending on gaming, which continues to add pressure on household budgets,” said Pep.
“Despite these headwinds, Pepkor’s resilient business model once again proved its defensiveness and adaptability, underpinning the group’s ability to deliver sustainable long-term value creation.”
