Pepkor provided a trading update in the expectation that its earnings per share and headline earnings per share for the year ending 30 September 2020 will be down at least 20% compared to the prior period. The group attributes the expected decrease to accounting changes as well as the impact of Covid-19 on operations. In an earlier trading update this year, Pepkor said that lost sales in April were estimated at around R5 billion across the group, with trading rebounding in the subsequent months as restrictions eased.
Pepkor also said that its liquidity position is improving, having been able to both settle debt early and refinance and extend some of its debt. The drive to deleverage has been helped by an accelerated bookbuild completed in June that raised R1.9 billion, as well as expense management. Pepkor is also in the middle of selling one of its subsidiaries, The Building Company, for a proposed consideration of around R1 billion with the proceeds to go towards reducing debt further.