Load Shedding Woes Decimate Pick 'n Pay's Profits

In an unexpected turn of economic events, JSE-listed food retailer, Pick 'n Pay has disclosed a grim set of financial results for the six-month term ending in August 2023. The supermarket chain cites the crippling impact of skyrocketing load-shedding costs that have tightened its competitive edge against counterpart retailers.

Per a report released by Moneyweb, Pick 'n Pay documented a dramatic 97.5% collapse in trading profit for the 26-week span. The earnings nosedived to a meager R31.8 million, a stark contrast to the R 1.253 billion raked in during the equivalent term in 2022.

The company maintained that its financial performance would have been significantly sturdier without the burden of a R 396 million expenditure on diesel. This was a necessary expense for generator operation during persistent load shedding spells. Additionally, the company was saddled with another R596.8 million in unprecedented abnormal overheads.

A breakdown of these costs includes R259 million dedicated to employee restructuring, R190 million incurred in net incremental energy charges, and R116 million spent mitigating the impact of duplicated supply chain costs.

Taking the reins amid the somber reporting period, the recently re-instated CEO, Sean Summers is entrusted with the difficult task of steering the retail giant back on a trajectory of growth and profitability.

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