Pick n Pay expects FY HEPS to rise 15% to 20%
In a statement on Monday, the grocery retailer attributed the improvement in earnings to greater efficiency, which included a more centralised supply chain and higher productivity in stores.
"Turnover growth of 7% reflects a difficult trading environment, alongside some internal disruption from refurbishments and store closures which are improving the quality of the estate," the company said.
Pick n Pay said it was developing "strong pillars" for future growth by improving its customer offer across its Pick n Pay and Boxer format.
It also aimed to open more Next Generation stores, accelerating product innovation through private label and enhancing its clothing, online and services offer.
In March, the company committed R500m to cutting prices on over 1,300 essential items in the hopes of relieving pressure on consumer food baskets.