Boxer Packs a Pricey Punch

October 19, 2026

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Boxer Retail (BOX) Interim Results for 26W Aug ’26 (7917c)

BOX chart

HEPS: 124.83c (+9.2% from 114.28c)
EPS: 125.28c (+13.1% from 110.75c)
Operating Profit: R1 006m (+8.1% from R931m)
Revenue: R24.1bn (+6.3% from R22.7bn)
Gross Profit: +0.5% margin expansion
Dividend: 49.93c interim (40% payout ratio)
Boxer delivered resilient earnings growth ahead of turnover in a deflationary retail environment. Trading profit rose 8.1% to R1bn, supported by gross margin expansion of 50bps and a 34.7% increase in other income from B‑Inside data services and B‑Media initiatives. Net cash strengthened to R2.3bn after extinguishing long‑term debt, with free cash flow of R2bn generated in H1. CapEx fell 40% to R320m, reflecting timing of store rollouts, though 60 new stores remain targeted for FY27. CEO Marek Masojada announced his retirement after 33 years, with Justin Galloway appointed CEO‑designate effective immediately, assuming the role on 1 Mar ’27. Masojada noted: “Despite constrained trading, Boxer continues to grow ahead of other players in the market.”
Comment: Consensus is forecasting Heps up 13.4% to 390cps for FY03/27 which makes for a 6 month FPE on 8300c of 21.3x. This is in line with grocery sector leader Shoprite the consensus EPS forecast for which for FY06/27 is 1741c which is 16.2% ahead of FY26 and a FPE of 18.7x. On the face of it therefore Boxer would appear to be fully priced at present despite Masojada pointing to Boxer’s continuing to grow faster than peers with 60 new stores (a 10% increase) scheduled to have opened by the February 27 year end and a strongly growing pipeline after that. “Other trading income” grew 34.7% to R260m and includes the high margin sales of data to suppliers to guide their marketing efforts of their own products. Positive metrics include 59.1% ROE, 32.3% ROCE and, although Debt: equity is 137% the debt comprises right of use liabilities with no long term debt. The commodity price deflation era from which Boxer and its customers have benefited is however coming to an end with the prices of maize, rice and flour, after continuing to trade between 14 and 28% below 12 month prior levels, now closing the gap. On top of that we now have rocketing fuel prices, which will affect customers, suppliers and Boxer alike. Depending on how long this persists, investors could well pick up the stock at lower levels later on but, given that it has outstanding prospects, longer term investors could well take initial positions now.

Bytes Technology (BYI) Interim Results for 6M Aug ’26 (9659c)

BYI chart

HEPS: 12.76p (+6.1% from 12.03p)
EPS: 12.76p (+6.1% from 12.03p)
Operating Profit: £35.3m (+6.6% from £33.1m)
Revenue: £128.3m (+18.7% from £108.1m)
Gross Profit: £97.1m (+17.8% from £82.4m)
Dividend: 3.3p interim (+3.1% from 3.2p)
Bytes Technology delivered strong top-line growth with gross invoiced income up 19.6% to £1.6bn, driven by double-digit expansion across software, services (+41%) and hardware (+39.7%). Revenue rose 18.7% to £128.3m, while gross profit increased 17.8% to £97.1m, supported by a refined sales structure and sector alignment. Operating profit grew modestly (+6.6%) to £35.3m, reflecting £4.5m of cost normalisation. Cash conversion improved to 45.7%, with £41m returned to shareholders including a £25m buyback. An interim dividend of 3.3p per share was declared. Post period-end, Bytes acquired CyberOne, adding 24×7 managed cyber security capability. CEO Sam Mudd highlighted strengthening demand drivers in AI, cyber security and cloud, with upgraded guidance for FY27 GP growth in the low-to-mid teens.
Comment: Despite strong GII, and revenue growth, the BYI share price saw a 5% sell off from open. This may be a reaction to the CyberOne acquisition, subdued operating profit growth resulting from a ~GBP4.5m cost normalisation, flat net income growth over 2 years (H1 2025 at 30.45 GBP vs 29.88 GBP), or an element of profit taking from a share that has run 80% since the March lows. Nevertheless, with a 115.7% renewal rate, and an asset light business model partnered with the biggest software solutions provider on the planet, Bytes remains in a great position to sustain and grow revenue in line with guidance, with a strong ability to pass through costs to customers. With price ratios sitting below recent year averages (although slightly elevated at the moment), value sits below 9000c.

iOCO (IOC) Financial Results FY26 (385c)

IOC chart

HEPS: 57c (+42% from 40c)
EPS: 57c (+42% from 40c)
Revenue: R5.73bn (+3% from R5.58bn)
EBITDA: R610m (+18% from R516m)
EBITDA grew 18% to R610m, supported by margin expansion to 11% and reduced net finance costs (-32%). Revenue increased 3% to R5.73bn, with IT Services contributing 4% growth. Strategic acquisitions enhanced technology capabilities, while recurring revenue exceeded 60%, strengthening visibility. Management highlighted disciplined capital allocation and balance sheet optimisation. Guidance for FY27 targets EBITDA of at least R680m, improved cash conversion, and continued investment in acquisitions and shareholder returns. CEO Rhys Summerton noted momentum has carried into FY27, underpinning confidence in sustainable growth.
Comment: iOCO is a R2.4bn market cap fledging and hence out of the reckoning for most institutional investors. It renamed from EOH Holdings after completing a multi-year recovery process under Stephen van Coller following the disastrous corruption ridden era under Asher Bobot. New Ceo and 10% owner Rhys Summerton, who doesn’t take a salary, has completed the first two stages of mainly head office cost savings of R480m and decentralisation with the installation of embedded business autonomy and accountability with appropriate incentives to create an owner-driven mindset on the part of the 12 CEOs. iOCO companies cover the entire ICT value chain each with their own IP and a vast network of over 50 global OEMS to build appropriate architectures for businesses. Summerton, but more importantly, the team, is now engaged with the third stage of capital deployment so is on the lookout for acquisitions with a strong pipeline under due diligence. Areas targeted are: Managed Services 35%, AI and data 25%, Cyber Security 20%, Technology Financing 10%, Industry Software 10%. Supportive metrics include 35% ROE, Interest cover 11.1x, Net debt/Ebitda 0.2. Summerton will not pay dividends but will do buy backs where value exceeds that of acquisitions. The model he has installed is widely and successfully implemented in a wide variety of companies including Datatec and industrials such as Hudaco and the multi bagger Argent (in which Summerton’s UK based value oriented global investment company Milkwood is also invested). On a 7x PE the stock could well outperform.

Equites Property Fund (EQU) Interim Results for 6M Aug ’26 (1855c)

EQU chart

HEPS: 88.9c (↑67.2% from 53.1c)
EPS: 143.0c (↑41.4% from 101.1c)
Revenue: R1.50bn (↓10.1% from R1.67bn)
Dividend: 72.57c interim (↑5.1% from 69.04c)
LTV: 28.1% (↓ from 35.1%)
NAV: 1743c per share (↑2.9% from 1693c)
Distribution growth of 5.1% was supported by a conservative balance sheet, with LTV reduced to 28.1% and R2.9bn in cash and undrawn facilities. The UK exit progressed with the disposal of the Aviva portfolio for GBP200.5m, while DHL Leeds remains for sale. R600m was deployed into SA logistics developments, with six projects underway representing R2bn in capital value. Vacancy remained low at 1.5%, and solar generation capacity reached 28.2MW, covering 75% of the portfolio. The dividend reinvestment alternative circular has been posted, offering shareholders the option to reinvest. Management reaffirmed FY26 distribution guidance of 147.7–150.5cps at a 100% pay-out ratio.
Comment: CEO Andrea Taverna-Turisan guided that the company has significant pipeline projects coming into effect in FY28/29. Considering the material LTV reduction, (which can be further adjusted to 25% when accounting for listed UK REIT equity liquidation), and the available cash facilities, EQU is well positioned to meet the funding requirements for future projects, and grow within guidance. At a PE of 10,15x and FPE of 12,07x, the share price is slightly overvalued relative to its peers and historical averages, which is why there is a reluctance to commit to share buybacks. The company is in a healthy position and can be held for a 7,9% DY.

Trading Statements & Updates

Tharisa (THA) Production Report Q4 & FY26 (2700c)

THA chart

PGMs: 41.0 koz Q4 (+3.5% QoQ); FY26 153.7 koz (+11% YoY, in line with guidance)
Chrome: 416.7 kt Q4 (+5.8% QoQ); FY26 1.56 Mt (+1% YoY, in line with guidance)
Average PGM basket price: US$2 607/oz (+61% YoY)
Average chrome price: US$290/t (+9% YoY)
Net debt: US$51m (vs US$10.7m net cash Jun ’26)
Guidance FY27: 150–170 koz PGMs; 1.50–1.65 Mt chrome
Tharisa delivered FY26 production in line with guidance, with PGMs up 11% to 153.7 koz and chrome steady at 1.56 Mt. Pricing was materially stronger, with the PGM basket averaging US$2 607/oz (+61%) and chrome US$290/t (+9%). Safety performance remained exemplary, with LTIFR at 0.03 and zero fatalities. The Apollo underground transition advanced 450m of development, while Karo Platinum was de-risked through a 25-year mining lease, a five-year offtake agreement with Valterra, and US$300m bond funding. Group cash stood at US$411.8m (including escrow), offset by debt of US$462.8m, leaving net debt of US$51m.

Famous Brands (FBR) Trading Statement for 6M Aug ’26 (5186c)

FBR chart

HEPS: 252c to 205c (7% to –13% vs 236c)
EPS: 205c to 157c (–13% to –33% vs 236c)
Revenue: Resilient, supported by value chain improvements
Resilient revenue growth was offset by elevated fuel prices and higher interest rates, which pressured profitability. EPS declined sharply due to a R40.9m goodwill impairment linked to the disposal of a 21% stake in Retail Group Botswana, reducing Famous Brands’ holding to 30% in line with its capital-light expansion strategy. Excluding the impairment, EPS would have been 199c–247c. The disposal reduces exposure to losses while retaining licence fee income. Management sees long-term potential in Botswana despite current underperformance. Results due 21 Oct ’26.

Mondi (MNP) Trading Update Q3 Sep ’26 (17958c)

MNP chart

Revenue: Supported by positive pricing momentum
EBITDA: €196m (↑18% from Q2 €167m; ↓12% from Q3 ’25 €223m)
Underlying EBITDA rose sequentially to €196m, aided by stronger order books and higher selling prices, though input cost inflation, particularly energy and wood, weighed on margins. Forestry fair value gain was nil, impacted by volatile energy prices, with management signalling a similar outcome in Q4 if current diesel costs persist. Corrugated Packaging benefited from Containerboard pricing, while Corrugated Solutions margins remained under pressure. Flexible Packaging and Consumer Solutions delivered resilient performances, offsetting cost headwinds. Progress continues on converting plant closures, with two disposals agreed to optimise the network. CEO Andrew King noted: “We delivered a resilient performance in the third quarter against a backdrop of rising input costs, with good order books supporting positive price momentum.” Higher packaging paper prices are expected to support Q4 performance despite ongoing cost pressures.

Snippets

On 11 Oct ’26, Foschini Group (TFG) London detected a cybersecurity breach impacting IT systems of Phase Eight, Hobbs and Whistles. Stores remain open, though some systems are unavailable. External specialists and UK authorities are engaged. TFG Africa and Australia operations are unaffected. Investigations continue to assess possible data compromise, with updates to follow if material.

https://www.linkedin.com/pulse/boxer-packs-pricey-punch-finovacapital-sa-zuo9f

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