Pick n Pay expects first-half profits to halve

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Pick n Pay expects first-half profits to halve
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Covid-19 trading restrictions and increased staff costs weigh on the supermarket group

Pick n Pay at Rosebank in Johannesburg. Picture: FREDDY MAVUNDA

Trading restrictions on items such as alcohol and tobacco, increased staff costs and a voluntary severance programme all weighed on the group, which expects comparable headline earnings per share to end-August to fall more than 50%. The group said 1,400 staff had left after it initiated a voluntary severance programme in March. At the beginning of March, the group had about 90,000 employees. Pick n Pay faced other costs, including protective gear for employees, while it had paid a R1,000 bonus for some of its front-line staff.

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