The fintech segment was a standout performer in retailer Pepkor’s financial results for the year ended 30 September.
In its annual results published today, the JSE-listed Pepkor says its fintech segment increased revenue by 31.1% to R16.6 billion and operating profit by 52.3% to R2.2 billion.
The retailer announced record profit growth for the year, delivering a strong financial performance underpinned by diligent operational execution and the successful implementation of key strategic initiatives. The group reported a 12% increase in revenue to R95.3 billion, while operating profit increased by 13.2% to R11.1 billion.
In a statement, Pepkor says driven by market share gains in its core retail business and a surging performance in its fintech segment, the group declared a dividend of 53c per share, up 9.2%.
Normalised headline earnings per share grew by 23.4% to 161c, highlighting the group’s ability to generate sustainable value despite a dynamic economic landscape and while executing a number of strategic initiatives, it states.
Pieter Erasmus, CEO of Pepkor, says: “We delivered record profit growth in the 2025 financial year. These results evidence the successful execution of our strategy to entrench our unique business model, leveraging our physical retail footprint to fuel a digital ecosystem anchored in solving customer needs.
“We continue to build a unique position of trust among millions of our customers, solving their needs and making life’s essentials affordable and accessible. Our core retail business outperformed the market, while our strategic focus on digital inclusion and fintech has added scalable future growth opportunities that are now delivering tangible results.”
Flash, the group’s informal market platform, increased throughput by 23% to R60 billion. Pepkor says Flash, with 170 000 active traders, continues to drive financial inclusion, increasing tapped value by 37.6% to R21 billion.
In the connectivity space, Pepkor solidified its strong market position, selling 13.5 million handsets (+17%) and now accounting for eight out of every 10 prepaid handsets sold in South Africa, says the company.
FoneYam, the group’s cellular handset rental product, surpassed two million active customers, effectively lowering affordability barriers to smartphones, it adds.
Erasmus notes that this year hasn’t been without its difficulties, but the group has continued to grow, adapt and innovate. He says the improving economic indicators, particularly declining food inflation and more stable electricity supply, support a positive outlook.
“In the year ahead, our focus will be on integrating recent acquisitions, consolidating new retail formats, and expanding our digital and omnichannel capabilities. We plan to open between 250 and 300 new stores in FY26. With a strong operational base and clear strategic focus, Pepkor is well-positioned to continue providing easy access to everyday products and services at affordable prices,” he concludes.
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