Boxer Retail (BOX) H2 2026 earnings summary

Executive summary

• Achieved strong financial and operational performance in FY 2026, with resilience in a deflationary environment and continued delivery on strategic goals.

• Opened 54 new stores (51 net), reaching a total of 576 stores, including entry into underserved areas and the milestone of the 550th store.

• Workforce grew by 3,400, now exceeding 35,000 employees, with recognized in-house training programs.

• Launched new initiatives: B Rewards loyalty program (2.7 million members), B-Inside Supplier Portal, and Boxer Retail Media.

• Delivered sector-leading ROIC and strong cash generation, ending the year net cash positive.

Financial highlights

• Turnover increased by 12.3% to ZAR 46.7 billion; like-for-like turnover up 4.5% (52-week basis).

• Trading profit grew 17.3% (comparable basis); trading margin rose to 5.7%.

• EBITDA up 12.8% to ZAR 4.031 billion; headline earnings up 13.2% to ZAR 1.593 billion.

• Gross profit margin improved by 30 bps to 21.6%; net cash position of ZAR 709 million at year-end.

• ROIC reached 26%, up from prior year.

• HEPS declined by 15% to ZAR 3.5167 per share due to IPO-related share dilution.

Outlook and guidance

• Plans to open 60 new stores in FY 2027, with 82% of leases signed and 64% of developments underway.

• FY 2027 CapEx planned at ZAR 1.1 billion, focused on expansion.

• Expectation of a return to an inflationary environment as supplier price increases emerge.

• Margin outlook is flat, with ongoing efforts to protect profitability amid market volatility and increased diesel spend.

• Sales growth guidance remains in the low teens long-term, but near-term uncertainty due to deflation and inflation impacts.