SA Corporate Update: Pick n Pay Braces for Loss as Capitec Flags 25% Profit Surge
Pick n Pay: The Cost of a Turnaround
Pick n Pay (PnP) issued a sobering trading statement for the 2026 financial year (FY26), warning shareholders that its headline loss per share is expected to worsen by more than 20% compared to the previous year.
The retailer, currently under a massive turnaround strategy led by veteran CEO Sean Summers, attributed the slump to lower-than-expected turnover and a “soft” November trading period. The core Pick n Pay South Africa division saw a turnover decline of 1.4%, primarily due to the strategic closure or conversion of underperforming supermarkets.
Key PnP Metrics (48 weeks to 1 Feb 2026):
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Headline Loss Increase: >20% (estimated at roughly R490 million).
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Boxer Performance: A bright spot with 11.9% turnover growth.
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Online Sales: Surged by 31.8%, driven by asap! and the Mr D partnership.
Capitec: Opening the Taps on Growth
In stark contrast, Capitec Bank released a buoyant trading statement on Wednesday, 11 February 2026. The bank expects its headline earnings per share (HEPS) to rise by 20% to 25% for the year ending February 2026.
Capitec’s growth is fueled by a simplified fee structure, an expanding client base of over 25 million active users, and a strategic push into business banking. The bank noted that improved macroeconomic conditions have boosted lending activity, while value-added services like Capitec Connect continue to provide a steady stream of non-interest income.
Capitec FY26 Projections:
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Expected HEPS: 14,294 – 14,890 cents per share.
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Profit Estimate: Approximately R16.5 billion to R17.2 billion.
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Insurance Income: Significant growth in funeral and life cover policies.
Retail vs. Banking: A Tale of Two Sectors
The divergent results highlight the current “K-shaped” recovery in the South African economy. While retail is struggling with disposable income pressure and structural changes, the banking sector is benefiting from high-volume digital transactions and a shift toward “purpose lending.”
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