Recasts throughout with profit before tax number, adds turnover details

By Nqobile Dludla

JOHANNESBURG, May 25 (Reuters) - South African grocer Pick n Pay PIKJ.J swung to an annual profit before tax on Monday, on the back of a positive swing in net funding interest and its value chain Boxer's BOXJ.J strong performance.

The retailer's profit before tax and capital items was 360 million rand ($22.05 million) in the 52 weeks ended March 1 against a loss of 237 million rand in the prior 53-week period.

The improvement was driven by a 681 million rand positive swing in net funding interest, partially offset by a 74 million rand reduction in consolidated trading profit.

The firm's headline loss per share narrowed by 14.6% to 52.58 cents.

The group, which has been battling to regain some of the market share that it lost to rival Shoprite SHPJ.J, said its turnover inched up 1% to 120 billion rand, driven mainly by a 9.6% rise in Boxer's turnover.

While Boxer did the heavy lifting, the core Pick n Pay business remained under pressure.

The segment reported a turnover decline of 3.7%, reflecting store closures and conversions. Its trading loss after lease interest widened to 2 billion rand, compared with a loss of 1.7 billion rand previously.

($1 = 16.3281 rand)