PG p l c : Approval of Interim Financial Statements

COMPANY ANNOUNCEMENT

The following is a company announcement issued by PG p.l.c. (C-78333) in terms of Capital Markets Rule 5.16.20.

Date of Announcement:	15 December 2022
Ref.:	069/2022

APPROVAL OF INTERIM FINANCIAL STATEMENTS

QUOTE

At its meeting held earlier today, 15 December 2022, the Board of Directors of PG p.l.c. (the "Company") approved the Company's unaudited financial statements and Interim Directors' Report for the six months ended 31 October 2022.

A copy of these unaudited financial statements and Interim Directors' Report are attached herewith and are also available for viewing at the registered office of the Company and on the Company's website - www.pggroup.com.mt.

UNQUOTE

By order of the Board.

_________________

Dr Emma Grech

Company Secretary

15 December 2022

HALF-YEARLY

REPORT

2022-23

PG p.l.c.

Half-Yearly Report - 31 October 2022

	Pages
Half-yearly directors' report	1 - 2
Condensed consolidated statement of financial position	3
Condensed consolidated statement of comprehensive income	4
Condensed consolidated statement of changes in equity	5
Condensed consolidated statement of cash flows	6
Notes to the half-yearly report	7 - 9
Director's statement pursuant to Capital Markets Rule 5.75.3	10

PG p.l.c.

Half-Yearly Report - 31 October 2022

Half-yearly directors' report

Trading performance

During the first six-month period ended 31 October 2022, the Group registered an increase in turnover of 13.8%.

The six month period under review was one marked by international turmoil which contributed to high inflation in food and other prices. A recent internal exercise based on the food commodities imported by PG Group - ie, excluding products sold by concessionaires - indicated that cost prices incurred during this period were 7.3% higher than in 2021. The resulting increase in sales prices has inevitably been felt by the Group's clientele and has resulted in an element of change in buying patterns, occasionally towards cheaper brands or towards cheaper food alternatives.

The Group's emphasis during this period has been that of reducing the impact on its customers. PG has enhanced the scale of its direct buying and has sought to ensure, across all major categories, that it offers an entry level product that can match the alternatives available on the market. The Group has also absorbed an element of the cost price increases incurred, in spite of inflation experienced also in its operating costs, and indeed during the period under review the overall gross profit registered fell from 15.9% to 14.3%.

The efforts made by the Group to dampen the impact of price increases were noted by the market and the Group's supermarkets and associated retail turnover increased by 14.9% during the period, reflecting a volume growth in the region of 9.0%. This growth in turn contributed to enhanced efficiency within the two supermarkets, allowing the Group in large part to offset the impact of higher operating costs. It also resulted in a higher footfall that in turn assisted retail tenants both at Pama and at Pavi.

Growth was also recorded in franchise operations, with Zara and Zara Home sales recording an increase of 9.0% in turnover. These two brands continue to offer good quality products at affordable prices, and have maintained their popularity with local consumers. The sales growth they registered was particularly gratifying when considering that in the same period in 2021 this business had recorded record sales in the immediate aftermath of COVID.

The overall gross and operating profits earned by the Group for this period remained consistent with those registered in 2021, reflecting the combined impact of the factors described above. Profit before tax amounted to €8.5 million as compared to €8.6 million the previous year. After deducting taxation, the Group registered a profit after tax of €6.1 million compared to €6.2 million the previous year.

The Group's positive result was also reflected in the cash flow generation during the first six months of this financial year. Cash generated from operating activities amounted to €11.0 million and at 31 October 2022 the Group's cash at bank exceeded its bank borrowings. The Group remains committed to pursue new growth opportunities in its core line of business, as indicated as well in its recent announcement regarding the conclusion of a promise of sale agreement to acquire land adjacent to its Pavi outlet.

Future prospects

The Group commenced this financial year cognizant of the uncertain economic and political outlook, with the Board's stated aim of maintaining, and possibly improving upon, the record results recorded in the financial year 2021/22.

The consistent performance recorded in the first half year, coupled with the positive momentum being enjoyed in current operations, leads to cautious optimism that the Board's expectations for the full year will be maintained. At the time of approving this report, the Board notes as well that the broad economic outlook moving ahead appears less negative than it appeared at the commencement of the financial year, even if the conflict in Ukraine remains a cause for great concern and uncertainty.

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PG p.l.c.

Half-Yearly Report - 31 October 2022

Future prospects - continued

Looking beyond the immediate period ahead, the Board is also encouraged by the influx of new customers that the business has enjoyed in recent months. As already stated above, the Group's efforts to dampen the impact of higher prices has been recognized by the market, and will no doubt translate into higher customer loyalty in the longer term.

Dividends

On the 29 November 2022, the Board of Directors resolved to distribute a net interim dividend of €2.25 million in respect of the first six months of this financial year ending 30 April 2023. These dividends were paid on 9 December 2022 to the ordinary shareholders registered on the books of the Group as at 2 December 2022.

On behalf of the Board

John Zarb	Paul Gauci
Chairman	Executive Vice-Chairman
Registered office:
PG Group Head Offices,
PAMA Shopping Village,
Valleta Road,
Mosta,
Malta
15 December 2022

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