Pick n Pay reveals that load shedding costs them R522m
Pick n Pay has share how they too have suffered from the impact of load shedding, which has led to increased operating costs, lost revenue and declining margins, affecting profitability.
Despite the negative effects of load shedding on its bottom line, Pick n Pay claims to have delivered a “encouraging performance” in its financial results for the year ended February 26, 2023.
Kaya Biz with Gugulethu Mfuphi spoke to David North, Chief Business Transformation Officer at Pick n Pay about how the business has dealt with issues of loadshedding.
LISTEN TO THE FULL CONVERSATION HERE:
The company said that while overall earnings were higher than the generally flat projection provided in earlier market communications, profits were nonetheless negatively impacted by the additional expenses of running diesel generators, particularly in the second half of the trading year.
“Like everyone in South Africa, we have had to manage substantial inflationary cost pressures, exacerbated by an unprecedented worsening of load shedding,” Pick n Pay CEO Pieter Boone said.
Pick n Pay said it had to deal with high levels of load shedding during the second half of the financial year while also starting to implement the Ekuseni strategic plan.
The multi-year plan’s first year’s results were positive, especially in light of Boxer’s expansion.
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