CEO Pick n Pay Richard Brasher said he had expected to step down when he announced the retailer’s 2019 annual results but due to uncertainties caused by the Covid-19 pandemic, instead he is “stepping up”.
Brasher announced the Pick n Pay annual results to end-February on Tuesday, which included a contraction of headline earnings per share by 0.6% to reach 278.81c.
The 11.5% decreased profit to R1.19bn was in part due to increased local taxes and struggles with hyperinflation and huge economic weakness in Zimbabwe and Zambia The SA business profit before tax was up 15.2%.
In an emotional end to his results address, he said he had spent 35 years working in retail on four continents and felt he had achieved more than he had “ever imagined” he would and enough to satisfy himself that that chapter of his life was “done”.
Gareth Ackerman, chair of the Pick n Pay board, knew of his plans to step down for some time.
“Ironically, the moment I was to announce an emotional step-down, it is not that. I am emotionally stepping up. I step up willingly and happily.”
Brasher said that given the challenges of the Covid-19 pandemic and an expected baseline 7% economic contraction in SA, he will delay his departure. “I think the company … deserves a bit more stability. In truth, in a modern world, seven or eight years is a long time for any leader in the 21st century.”
He said he is pleased Pick n Pay is developing internal talent. “In a fast-moving world, institutions must be ready to refresh ourselves.”
He had hoped to spend more time with his family after retiring, joking they may not feel the same way after six-and-a-half weeks together in lockdown. “Clearly, the virus has changed everyone’s lives. I am not alone in changing personal plans.”
The virus and economic contraction present a professional challenge that he welcomes, but adds that the pandemic presents a major personal challenge for most people. Brasher said these times are “truly unprecedented. Our world has changed in the short space of three months”.
He is pleased with his time at the helm of the food retailer for seven years. Since he became CEO, turnover had increased by R32bn and there are now 800 more Pick n Pay, Boxer and clothing stores in SA and Africa, reaching a total of 1,925. The company has centralised its supply chain depots to cut costs.
“The last seven years have been quite special. I am pleased with what I have done. Time has flown by. I have enjoyed most of it.” But he said SA is a “crazy” country at times.
Brasher did not provide a new retirement date, but has committed to a two-year plan to cut internal business costs by R1bn by 2022.
In morning trade on Tuesday, Pick n Pay’s share price was down 8.86% to R54.21, putting it on track for its worst one-day performance since December 2001, according to Infront data.
The group’s share price has fallen 15.15% so far in 2020, while the JSE all share has fallen just more than 12%.
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