JSE-listed Blu Label Unlimited Group on Friday reported that it expects a significant decline in earnings for the year ended May 31, 2026.

In a trading update to shareholders, the company warned that earnings per share (EPS) for the year under review is expected to plunge more than 100% to a loss of between 536.96 c and 542.5 c, compared with EPS of 276.52 c in the prior year.

Headline earnings per share (HEPS) are expected to decrease between 81% and 83% to a range of 79.02 c to 88.14 c, compared with HEPS of 455.96 c in 2025.

Core HEPS is expected to decrease from 461.63 c in 2025 to between 83.58 c and 92.82 c in 2026, a decrease of between 80% and 82%.

“The group's reported results for both the reporting period and the comparative period were materially impacted by the Cell C restructuring transactions, the outcome of the listing of Cell C and the resulting accounting consequences under IFRS Accounting Standards. These factors resulted in a material decline in reported EPS, HEPS and Core HEPS for the reporting period,” Blu Label Unlimited noted.

Excluding Cell C and Comm Equipment Company's financial results, all extraneous items relating to the restructuring transactions and listing of Cell C, loss on disposals and impairments, Blu Label Unlimited would have reported revenue of R9.4-billion, gross income of R2.556-billion, earnings before interest, tax, depreciation and amortisation of R923-million and net profit after tax of R677-million.

Further, core headline earnings would have totalled R681-million, equating to core HEPS of 75.33 c.

“As only the gross profit earned on PINless top-ups, prepaid electricity, ticketing and universal vouchers are recognised as revenue, the imputed gross revenue generated from these sources amounted to R99.9-billion. These metrics provide a more meaningful indication of Blu's underlying operational performance and earnings base going forward.”

Blu Label Unlimited expects to publish its financial results for the year ended May 31, 2026, on August 26, 2026.