Pepkor Reports 12% Earnings Rise, Expands Market Share Across Retail, Mobile Sales

Pepkor Holdings Ltd., South Africa's leading discount retailer, reported strong financial growth for the six months ending March 31, 2025, with a 12.4% rise in earnings and a 12.8% increase in revenue. The company's mobile handset sales surged 17% to 6.8 million units, with smartphones making up about 65%, solidifying its 80% market share in pay-as-you-go phones. Retail revenue increased by 10.5%, supported by growth in fintech services and insurance, while the group maintained strict cost control and expanded market share across key segments. Pepkor's CEO, Peter Erasmus, expressed optimism about the future despite South Africa's challenging economic environment, citing expected improvements such as reduced inflation and load shedding. The retailer is on track to open between 250 and 300 new stores in the 2025 fiscal year, with total stores reaching nearly 5,900 and continued momentum in clothing sales. Shares saw a moderate increase following the earnings announcement, although they remain down year-to-date.