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Our opinion on the current state of PICKNPAY(PIK)Pick 'n Pay (PIK) is a long-established retail grocery chain with a strong presence in South Africa and several stores across Africa. Founded by Raymond Ackerman in 1967, the brand once dominated South Africa's grocery retail space before being overtaken by competitors like Shoprite/Checkers. The company has brought Sean Summers back as CEO, hoping to leverage his leadership from his previous tenure (1999–2007) to steer Pick 'n Pay toward renewed growth and stability. In its latest results for the 26 weeks ending 25th August 2024, Pick 'n Pay reported: - Turnover up 3.7% - Headline loss of 136.6c per share (versus a previous 117.48c loss) - Trading losses in its Pick 'n Pay business increased by 9.1% to R718.9 million, attributed to margin contraction in the gross profit for H1 FY25. However, the company noted positive growth in its Clothing and Online divisions and improvements in company-owned supermarkets. The partnership with Mr. D and Takealot could be instrumental in catching up in the online retail space, an area that has become increasingly important for retailers worldwide. To strengthen its financial position, Pick 'n Pay held an oversubscribed rights issue in mid-2024 to raise R4 billion. Although this caused an initial share price dip on 17th July 2024, it allowed the company to progress plans to separately list Boxer. Technically, the stock has been in a downward trend since 2016, but recent indicators, including a 200-day moving average break on 27th May 2024 at 2558c, suggest a possible new upward trend. As of the end of October 2024, shares were trading around 2640c, reflecting cautious optimism. Despite these developments, the share remains risky, given the continued competitive pressures and challenging market conditions.
JSE:PIK
by PDSnetSA
Our opinion on the current state of PICKNPAY(PIK)Pick 'n Pay (PIK) is a retail grocery chain with over 2,000 stores, primarily in South Africa but also operating in other parts of Africa. The company was founded by Raymond Ackerman in 1967 and became the dominant grocery retailer in the country before being surpassed by Shoprite/Checkers. Richard Brasher previously served as CEO, but Sean Summers, who led the company from 1999 to 2007, has returned to the role of CEO in an effort to restore the company's competitive edge. In its results for the 52 weeks ending 25th February 2024, Pick 'n Pay reported a 5.4% increase in turnover but posted a headline loss of 203.06c per share, compared to a profit of 259.25c in the previous year. The company highlighted a significant decline in trading profit, which fell 87.4% to R385 million. This was largely due to a R1.5 billion trading loss from Pick 'n Pay, a sharp reversal from FY23's R1.3 billion profit. Meanwhile, Boxer contributed R1.9 billion in trading profit, compared to R1.8 billion in the previous year. The company also faced a substantial 198.8% increase in net interest paid, reaching R701.8 million, driven by higher gearing and increased interest rates. Technically, Pick 'n Pay has been in a long-term downward trend since 2016, having lost significant market share to Shoprite. The company has been working to catch up in the online shopping market through partnerships with Mr. D and Takealot. To recapitalise the business, Pick 'n Pay plans to list its Boxer division separately and conduct a rights issue to raise R4 billion by mid-2024. The rights issue was approved by shareholders at a general meeting on 26th June 2024. The company issued 252.2 million nil paid letters of allocation (NPLs) in the ratio of 51.11 NPLs for every 100 Pick 'n Pay shares held, resulting in a 33.8% dilution. The take-up price was set at 1586c per share, representing a discount of approximately 32.48%. The rights offer was more than 100% oversubscribed, but the rights issue caused the share price to fall on 17th July 2024. The Ackerman family had to inject R1 billion to maintain their 25% stake in the company. In a trading statement for the 26 weeks ending 25th August 2024, Pick 'n Pay estimated that headline earnings per share (HEPS) would decline by between 20% and 30%. The company reported that like-for-like sales grew by just 0.1% for Pick 'n Pay, while Boxer saw stronger growth, with sales increasing by 13.5%. Internal sell price inflation was 4.3%. We previously recommended applying a 200-day simple moving average and waiting for a clear upside break before further investigation. That break occurred on 27th May 2024 at a price of 2558c, with the share rising to 2850c before the rights issue. However, by the end of August 2024, the share was trading at 2392c. Given the company's challenges, the share remains risky for investors at this stage.
JSE:PIK
by PDSnetSA
Our opinion on the current state of PICKNPAY(PIK)Pick 'n Pay (PIK) is a retail grocery chain with over 2000 stores, mostly in South Africa, but also in the rest of Africa. The company was started by Raymond Ackerman in 1967 and became the dominant grocery retailer over time, before being displaced by Shoprite/Checkers. Summers has once again resumed the role of CEO, following his stint at Pick n Pay as CEO between 1999 and 2007. In its results for the 52 weeks to 25th February 2024, the company reported turnover up 5.4% and a headline loss of 203.06c compared with a profit of 259.25c in the previous year. The company said, "Trading profit declined 87.4% to R385.0 million, reflecting a R1.5 billion trading loss for Pick n Pay (a sharp reversal versus FY23's R1.3 billion profit), and a R1.9 billion trading profit for Boxer (R1.8 billion profit in FY23). The result was further impacted by a 198.8% increase in net interest paid to R701.8 million, as a result of higher gearing and increased interest rates." Technically, Pick 'n Pay has been in a downward trend since 2016 and has lost substantial ground to Shoprite. On the latest results, it remains in a long-term downward trend. The link-up with Mr. D and Takealot should help the company catch up in the online shopping market. To recapitalize the business, Pick 'n Pay is planning to separately list Boxer and conduct a rights issue to raise R4bn in mid-2024. The rights issue was approved by shareholders at a general meeting on 26th June 2024. The company will issue 252.2 million nil paid letters of allocation (NPL) in the ratio of 51.11 NPLs for every 100 Pick n Pay shares held—resulting in a dilution of 33.8%. The NPLs will be listed separately for a period. The take-up price was set at 1586c per share—a discount of approximately 32.48%. The rights offer was more than 100% oversubscribed. The rights issue caused the price of Pick 'n Pay shares to fall on 17th July 2024. The rights issue would require the Ackerman family to inject R1bn to retain their holding at 25% of the company. We recommended that you apply a 200-day simple moving average and wait for a clear upside break before investigating further. That break came on 27th May 2024 at a price of 2558c. The share moved up to 2850c before the rights issue but is trading at 2226c at the beginning of August 2024. The share remains risky.
JSE:PIK
by PDSnetSA
Our opinion on the current state of PICKNPAY(PIK)Pick 'n Pay (PIK) is a retail grocery chain with over 2000 stores, mostly in South Africa, but also in the rest of Africa. The company was started by Raymond Ackerman in 1967 and became the dominant grocery retailer over time, before being displaced by Shoprite/Checkers. Summers has once again resumed the role of CEO, following his stint at Pick n Pay as CEO between 1999 and 2007. In its results for the 52 weeks to 25th February 2024, the company reported turnover up 5.4% and a headline loss of 203.06c compared with a profit of 259.25c in the previous year. The company said, "Trading profit declined 87.4% to R385.0 million, reflecting a R1.5 billion trading loss for Pick n Pay (a sharp reversal versus FY23's R1.3 billion profit), and a R1.9 billion trading profit for Boxer (R1.8 billion profit in FY23). The result was further impacted by a 198.8% increase in net interest paid to R701.8 million, as a result of higher gearing and increased interest rates." Technically, Pick 'n Pay has been in a downward trend since 2016 and has lost substantial ground to Shoprite. On the latest results, it remains in a long-term downward trend. The link-up with Mr. D and Takealot should help the company to catch up in the online shopping market. To re-capitalise the business, it is planning to separately list Boxer and conduct a rights issue to raise R4bn in mid-2024. The rights issue was approved by shareholders at a general meeting on 26th June 2024. The company will issue 252.2m nil paid letters of allocation (NPL) in the ratio of 51.11 NPLs for every 100 Pick n Pay shares held - resulting in a dilution of 33.8%. The NPLs will be listed separately for a period. The take-up price will be 1586c per share - a discount of approximately 32.48%. Obviously, when the rights issue is complete, the price of Pick 'n Pay shares can be expected to fall by roughly one-third. The rights issue would require the Ackerman family to inject R1bn to retain their holding at 25% of the company. We recommended that you apply a 200-day simple moving average and wait for a clear upside break before investigating further. That break came on 27th May 2024 at a price of 2558c. The share has since moved up to 2750c. Despite this, the share remains risky.
JSE:PIK
by PDSnetSA
Our opinion on the current state of PICKNPAY(PIK)Pick 'n Pay (PIK) is a retail grocery chain with over 2000 stores, mostly in South Africa, but also in the rest of Africa. The company was started by Raymond Ackerman in 1967 and became the dominant grocery retailer over time, before being displaced by Shoprite/Checkers. Summers has once again resumed the role of CEO, following his stint at Pick n Pay as CEO between 1999 and 2007. In its results for the 52 weeks to 25th February 2024, the company reported turnover up 5.4% and a headline loss of 203.06c compared with a profit of 259.25c in the previous year. The company said, "Trading profit declined 87.4% to R385.0 million, reflecting a R1.5 billion trading loss for Pick n Pay (a sharp reversal versus FY23's R1.3 billion profit), and a R1.9 billion trading profit for Boxer (R1.8 billion profit in FY23). The result was further impacted by a 198.8% increase in net interest paid to R701.8 million, as a result of higher gearing and increased interest rates." Technically, Pick 'n Pay has been in a downward trend since 2016 and has lost substantial ground to Shoprite. On the latest results, it remains in a long-term downward trend. The link-up with Mr. D and Takealot should help the company to catch up in the online shopping market. To re-capitalise the business, it is planning to separately list Boxer and conduct a rights issue to raise R4bn in mid-2024. The rights issue was approved by shareholders at a general meeting on 26th June 2024. This would require the Ackerman family to inject R1bn to retain their position as 25% shareholders. We recommended that you apply a 200-day simple moving average and wait for a clear upside break before investigating further. That break came on 27th May 2024 at a price of 2558c. The share has since moved up to 2739c. Despite this, the share remains risky.
JSE:PIK
by PDSnetSA
$JSEPIK - Pick n Pay: Is There Life In This Stock?See link below for previous analysis. Could a bear market that began in August 2016 be finally over? There is not enough technical evidence yet but the rally from 1662, preceded by MACD convergence, could provide a bigger relief rally or it could just be a dead cat bounce. I am still looking at the large Elliott Wave structure as a triple- zigzag (WXYXZ). I am sitting on my hands on this one but I will monitor price above 1662 cps.
JSE:PIKLong
by Loyiso_BlaqueSoros_Mpeta
Our opinion on the current state of PICKNPAY(PIK)Pick 'n Pay (PIK) is a retail grocery chain with 1,858 stores, mostly in South Africa but also in the rest of Africa. The company was started by Raymond Ackerman in 1967 and became the dominant grocery retailer over time, before being displaced by Shoprite/Checkers. Pick 'n Pay was in a slump when Richard Brasher took over as CEO in early 2013. Brasher set in motion a centralisation of distribution, which is now beginning to have a significant impact on efficiency and prices. He also implemented a store roll-out and a revamping of existing stores, which brought customers back to the chain. The essential difference between Brasher's strategy and that of Pick 'n Pay's main rival, Shoprite, has been that he focused on making the South African operation more efficient and winning back customers through good pricing. Shoprite, on the other hand, expanded aggressively into Africa, which has not always been beneficial. This is shown by the fact that it was forced to abandon Nigeria and is subject to the relatively high inflation rate in Angola, which became a distinct problem for Shoprite. Summers has once again resumed the role of CEO, following his stint at Pick 'n Pay as CEO between 1999 and 2007. In its results for the 52 weeks to 25th February 2024, the company reported turnover up 5.4% and a headline loss of 203.06c compared with a profit of 259.25c in the previous year. The company said, "Trading profit declined 87.4% to R385.0 million, reflecting a R1.5 billion trading loss for Pick 'n Pay (a sharp reversal versus FY23's R1.3 billion profit), and a R1.9 billion trading profit for Boxer (R1.8 billion profit in FY23). The result was further impacted by a 198.8% increase in net interest paid to R701.8 million, as a result of higher gearing and increased interest rates." Technically, Pick 'n Pay has been in a downward trend since 2016 and has lost substantial ground to Shoprite. On the latest results, it remains in a long-term downward trend. The link-up with Mr. D and Takealot should help the company to catch up in the online shopping market. To recapitalise the business, it is planning to separately list Boxer and conduct a rights issue to raise R4bn in mid-2024. This would require the Ackerman family to inject R1bn to retain their position as 25% shareholders. We recommended that you apply a 200-day simple moving average and wait for a clear upside break before investigating further. That break came on 27th May 2024 at a price of 2558c. Despite this, the share remains risky.
JSE:PIK
by PDSnetSA
Expecting a recovery the value of the brand and company. Firstly expecting to continue trending upwards if the starts trading above R1800-R2000. This is one company that seem to be resilient and functions in bad time because of how big the name is what it means to the people. Looking at Pick n Pay , fundamental it looks like it far fetch for it recover but it is one of the staple names in South African households. In his book 'Same as Ever' author Morgan Housel he leaves a few questions at the end of the book and one of my favorite ones is 'What's always been true?' and the answer to that big name and household company names survive and recover if it is well run. Looking at the chart the recent low could the lowest the share price has been at R1675 which is last years financial low at the end of the fourth quarter and last years high at R5720 which creates a huge potential in value to be recovered in the upcoming years.
JSE:PIK
by KhoraCapital
2
Waiting for a rare South African miracle With the uncertainty looming around with elections happening this year in May it is best to wait until the everything settles, Pick n Pay still has customers who are or might be still loyal to the brand because of what it delivers and their smart shopper systems which people have and understand. The share price has been falling due to working conditions like heavy load shedding hitting some areas harder than others. We hope during the year that the reserve bank will drop rates by few points to encourage consumers to spend more between the second half of the year until the festive season and going into a new year. Price could reach the near lows of R1403 per share and R1130 which are lowest prices since Pick n Pay started trading in the JSE. A company with deep roots in its country can only rely on hope and a miracle outside its control. The numbers won't lie the next three quarters.
JSE:PIK
by KhoraCapital
Our opinion on the current state of PIKPick 'n Pay, a major player in the retail grocery chain sector, operates 1,858 stores across South Africa and the rest of Africa. The company, established by Raymond Ackerman in 1967, underwent significant revitalization under CEO Richard Brasher from early 2013 until his retirement. Brasher's leadership marked a pivot towards centralizing distribution and revamping store operations, enhancing efficiency and customer pricing, thus reclaiming market position. Unlike its primary competitor, Shoprite, which expanded aggressively into Africa, Pick 'n Pay concentrated on refining its South African operations, a strategy that has shown mixed results due to various challenges including high inflation rates in expansion territories. Under the returned leadership of Summers, who previously served as CEO, Pick 'n Pay reported a 5.3% sales increase in the 47 weeks leading to January 21, 2024, highlighted by significant growth in its Boxer brand and African operations. However, the company anticipates a decrease of at least 20% in headline earnings per share (HEPS) for the year ending February 25, 2024, citing underperformance in its supermarkets and increased net debt, which rose from R3.8 billion to R7.2 billion within a span of five months. The company's technical trajectory has been in a long-term decline since 2016, exacerbated by recent challenges. Despite this, Pick 'n Pay's strategic initiatives, including partnerships with Mr. D and Takealot, and plans to separately list Boxer and conduct a rights issue to raise R4bn, indicate potential for future recovery and competitiveness in the online market. Investors considering Pick 'n Pay should note its solid blue-chip status and potential for improvement as it adapts to ongoing challenges like loadshedding. The proposed capitalization strategies signal the Ackerman family's commitment to maintaining their significant stake and the company's readiness to bolster its financial position. Monitoring for an upward trend break beyond the 200-day simple moving average could provide a timely investment opportunity as the company navigates its strategic realignment.
JSE:PIK
by PDSnetSA
UPDATE- Pick and Pay's : From Descending Triangle to Bearish Pick and pay Pick and Pay's Market Outlook: From Descending Triangle to Bearish Sentiment 1. Price Formation: The price has broken from a descending triangle (An inverse Cup and Handle confirm bearish sentiment) price formation on a daily chart. 2. Moving Averages: The 7-day moving average (MA) is below the 21-day MA, which is a positive sign indicating short-term bearish momentum. 3. 200-day Moving Average is above the Price. 4. Thus, Mas 7<21<200 5. Relative Strength Index (RSI): The RSI is <than 50, indicating bearish momentum and potential further upward movement. 6. Price Target: 2150 Zcents
JSE:PIKShort
by Sahle
UPDATE: Pick N Pay down in the dumps target still to R10.76Since the last update, we established Pick N Pay formed this M Formation which we were anticipating a break down. The break down took place and we were initially hesitant as we expected conservative testing of resistances and demand zones. But the fundamentals caught up to Pick N Pay, and the price continued its slump. The company is struggling with the inflated prices, challenging distribution channels and of course Load Shedding having a major effect on the business and the suppliers too. Unfortunately, we will continue to see downside for the retail giant and I hope it will make a come back in the next few years, as it has served an incredible element to South Africa and the variety of products unlike many places in the world. The target remains at R10.76.
JSE:PIKShort
by Timonrosso
1
$JSEPIK - Pick N Pay: Rehired CEO Can't Bring Reprieve For StockSee link below for prior analysis. Pick N Pay released arguably one of its worst 26 week trading results today and the market was not happy. The rehired CEO stating that it may take two years to turn things around shows just how gloomy things are at the company. Technically, there hasn't been any signs to be enthusiastic even before the announcement of the return of the CEO. If anything, downside momentum looks stronger with price having broken below the lower trendline of the channel. How much lower can the stock go is anyone's guess but the trend is clearly still bearish.
JSE:PIKShort
by Loyiso_BlaqueSoros_Mpeta
Our opinion on the current state of PIKPick 'n Pay (PIK) is a retail grocery chain with 1858 stores, mostly in South Africa, but also in the rest of Africa. The company was started by Raymond Ackerman in 1967 and became the dominant grocery retailer over time, before being displaced by Shoprite/Checkers. Pick 'n Pay was in a slump when Richard Brasher took over as CEO in early 2013. Since Brasher took over, the company has been steadily improving, but he has now retired. He has set in motion a centralisation of distribution which is now beginning to have a significant impact on efficiency and prices. He has also implemented a store roll-out and a revamping of existing stores which is bringing customers back to the chain. In 2018 he implemented a voluntary severance program (VSP) which has seen 3500 employees leave the company at a once-off cost of around R250m. The essential difference between Brasher's strategy and that of his main rival, Shoprite, has been that he has focused on making the South African operation more efficient and winning back customers through good pricing. Shoprite, on the other hand, has expanded aggressively into Africa and that has not always been beneficial as shown by the fact that it has now been forced to abandon Nigeria and the high inflation rate in Angola has become a distinct problem for Shoprite. In its results for the 52 weeks to 26th February 2023 the company reported group turnover up 8,9% and headline earnings per share (HEPS) down 1,3%. The company said, "Despite spending an incremental R522 million on diesel to run generators (R430 million net of electricity savings), and incurring planned costs in implementing the Ekuseni plan, the Group managed to hold year-on-year trading expense growth to just 11.9%, as a result of gains from Project Future cost-saving initiatives". In a trading statement for the 20 weeks to 16th July 2023 the company estimated that HEPS would fall by more than 20%. The drop in HEPS, which could cause the company to report its first ever interim loss, was caused by the cost of diesel to run generators, duplication of supply chain costs during the Longmeadow/Eastport handover and restructuring costs. The company said, "The estimated incremental abnormal costs for H1 FY24 highlighted above cumulatively total R610 million". In a trading statement for the 26 weeks to 27th August 2023 the company estimated that it would make a headline loss of between 129,82c and 149,36c compared with a profit of 97,62c in the previous period. The company also announced that Pieter Boone will resign as CEO and be replaced by Sean Summers with immediate effect. Summers previously worked for Pick n Pay as CEO between 1999 and 2007. Technically, Pick 'n Pay has been in a downward trend since 2016 and has recently lost ground to Shoprite. On the latest results, it remains in a steep long-term downward trend. It is a solid blue-chip company that will probably perform better once it adjusts fully for loadshedding. The link up with Mr. D and Takealot should help the company to catch up in the online shopping market.
JSE:PIK
by PDSnetSA
Pick and Pay's Market Outlook: From Descending Triangle to Beari Pick and pay Pick and Pay's Market Outlook: From Descending Triangle to Bearish Sentiment 1. Price Formation: The price has broken from a descending triangle (An inverse Cup and Handle confirm bearish sentiment) price formation on a daily chart. 2. Moving Averages: The 7-day moving average (MA) is below the 21-day MA, which is a positive sign indicating short-term bearish momentum. 3. 200-day Moving Average is above the Price. 4. Thus, Mas 7<21<200 5. Relative Strength Index (RSI): The RSI is <than 50, indicating bearish momentum and potential further upward movement. 6. Price Target: 2150 Zcents
JSE:PIKShort
by Sahle
Our opinion on the current state of PIKPick 'n Pay (PIK) is a retail grocery chain with 1858 stores, mostly in South Africa, but also in the rest of Africa. The company was started by Raymond Ackerman in 1967 and became the dominant grocery retailer over time, before being displaced by Shoprite/Checkers. Pick 'n Pay was in a slump when Richard Brasher took over as CEO in early 2013. Since Brasher took over, the company has been steadily improving, but he has now retired. He has set in motion a centralisation of distribution which is now beginning to have a significant impact on efficiency and prices. He has also implemented a store roll-out and a revamping of existing stores which is bringing customers back to the chain. In 2018 he implemented a voluntary severance program (VSP) which has seen 3500 employees leave the company at a once-off cost of around R250m. The essential difference between Brasher's strategy and that of his main rival, Shoprite, has been that he has focused on making the South African operation more efficient and winning back customers through good pricing. Shoprite, on the other hand, has expanded aggressively into Africa and that has not always been beneficial as shown by the fact that it has now been forced to abandon Nigeria and the high inflation rate in Angola has become a distinct problem for Shoprite. In its results for the 52 weeks to 26th February 2023 the company reported group turnover up 8,9% and headline earnings per share (HEPS) down 1,3%. The company said, "Despite spending an incremental R522 million on diesel to run generators (R430 million net of electricity savings), and incurring planned costs in implementing the Ekuseni plan, the Group managed to hold year-on-year trading expense growth to just 11.9%, as a result of gains from Project Future cost-saving initiatives". In a trading statement for the 20 weeks to 16th July 2023 the company estimated that HEPS would fall by more than 20%. The drop in HEPS, which could cause the company to report its first ever interim loss, was caused by the cost of diesel to run generators, duplication of supply chain costs during the Longmeadow/Eastport handover and restructuring costs. The company said, "The estimated incremental abnormal costs for H1 FY24 highlighted above cumulatively total R610 million". In a trading statement for the 26 weeks to 27th August 2023 the company estimated that it would make a headline loss of between 129,82c and 149,36c compared with a profit of 97,62c in the previous period. The company also announced that Pieter Boone will resign as CEO and be replaced by Sean Summers with immediate effect. Summers previously worked for Pick n Pay as CEO between 1999 and 2007. Technically, Pick 'n Pay has been in a downward trend since 2016 and has recently lost ground to Shoprite. On the latest results, it remains in a steep long-term downward trend. It is a solid blue-chip company that will probably perform better once it adjusts fully for loadshedding. The link up with Mr. D and Takealot should help the company to catch up in the online shopping market.
JSE:PIK
by PDSnetSA