The company said headline earnings per share for the year to February would be between 257.65 cents and 268.85c a share compared with 224.04c a share last year.
“Greater operating efficiency is evident in the strong discipline on cost, more centralised supply chain and higher productivity in stores,” the company said.
Pick n Pay, which also trades in Namibia, Zimbabwe and Zambia, said turnover growth of 7 percent reflected a difficult trading environment, alongside some internal disruption from refurbishments and store closures.
Read also: Pick n Pay cuts prices of 1 300 food items
Sluggish economic growth, depressed consumer confidence and heightened competition was weighing on retailers in South Africa.
Pick n Pay has lost ground in South Africa to rivals such as market leader Shoprite.