Boxer H1 FY27 slides: 600 stores, margin gains amid deflation

Boxer disclosed its first-half fiscal 2027 results on October 12, 2026, reporting 600 stores while operating in a deflationary market in South Africa. Despite internal selling prices decreasing by 2.4%, the discount grocer managed to grow earnings faster than sales. The company's presentation showcased its capacity to maintain growth amid challenging conditions, such as the lowest food inflation rates since 2010 and ongoing consumer spending pressure.

Boxer achieved a 6.3% total turnover growth and 1.4% like-for-like growth, with profit before tax and capital items increasing by 10.6% to R774 million and headline earnings up 9.1% to R565 million. Earnings per share also rose by 9.2% to 124.83 cents. The company expanded gross margins by 50 basis points to 20.7%, driven by effective margin mix management, economies of scale, and better control of wastage and shrinkage.

While trading expenses increased 10.2% to R4,232 million, the trading margin improved by 10 basis points to 4.2%. The deflationary environment, characterized by internal selling price inflation of -2.4%, presented challenges but also led to volume growth of 3.8%. Food inflation remained at historic lows, with food and non-alcoholic beverage CPI at 0.9% in July 2026 and 1.1% in August 2026.

Boxer reached 600 stores during the half, opening 24 stores, primarily superstores and liquor stores, and bringing the total estate to 347 superstores, 221 liquor stores, and 32 stores under development. The company's development pipeline for FY28 and beyond remains strong, supported by a net cash position of R2.3 billion.