PG plc - Full-Year Results

On 24 August 2023, PG plc published the Annual Report and Financial Statements for the financial year ended 30 April 2023.

Revenues surged by 18.3% to a new record of just under €174 million (FY2021/22: €147 million) reflecting the further growth achieved by both business segments. Income from the ‘Supermarkets & Associated Retail Operations’ segment grew by 19.2% to €144.4 million while sales generated by the ‘Franchise Operations’ segment climbed by 13.9% to €29.5 million.

Operating costs (net of other income) increased by 20.2% to €155 million principally driven by higher cost of sales. However, since the growth in revenue in absolute terms was higher than the increase in costs, PG still reported a 4.6% increase in operating profit (EBIT) to a record of €18.9 million although the EBIT margin dropped to 10.9% compared to 12.3% in the previous financial year. Excluding depreciation and amortisation charges which amounted to €3.02 million, EBITDA grew by 4.5% to €21.9 million whilst the EBITDA margin weakened to 12.6% from 14.3% in the previous comparable period.

After accounting for net finance costs of €1.13 million and a tax charge of €4.98 million, PG reported a net profit of €12.7 million which is 5.2% higher than the previous comparable figure of €12.0 million and translates into a return on average equity of 21.4% (FY2021/22: 23%).

The Statement of Financial Position as at 30 April 2023, when compared to the corresponding figures as at 30 April 2022, shows that total assets increased by 15.5% (or €17.1 million) to €127.6 million largely reflecting the purchase of a site in close proximity of the PAVI Shopping Complex and the lease agreement of a property adjacent to PAMA Shopping Village. Total liabilities increased by 18.7% (or €10.3 million) to €65.2 million reflecting an increase in trade payables and the recognition of lease liabilities associated with the newly acquired sites. Notably, the company had a net cash position of €2.93 million (when excluding lease liabilities) as at 30 April 2023 since the bank borrowings totalling €10.4 million were outweighed by a cash balance of €13.4 million. Overall, total equity expanded by 12.2% (or €6.8 million) to €62.5 million.


For the 2022/23 financial year, PG paid out total net dividends of €0.0625 per share, which were 15.4% higher than the corresponding dividends of the previous year and translate into a higher payout ratio of 53.3% compared to the payout ratio of 48.6% for the previous year.


In their commentary, the Directors reiterated that PG operates in a highly competitive business environment and remains subject to various risks such as increasing pressures on margins and increased competition to attract and retain customers.

Nonetheless, the company stated that the 2023/24 financial year started on a positive note with first quarter (1 May 2023 and 31 July 2023) sales being 23% higher than the same period in 2022. The Board noted that while recognising that this growth rate cannot continue unabated, there are reasonable grounds to expect a successful financial year. The Board’s target is to improve upon the profits attained in FY2022/23.

Furthermore, PG continues to adopt a prudent approach to business by seeking to avoid undue levels of risk that would either impair the Group’s resilience when faced with unfavourable market conditions, or else inhibit its ability to capitalise on suitable opportunities that may be identified from time to time.