Shoprite Group has reported R138.9-billion in revenue for the 26 weeks to December 28, increasing sales, profits, and dividends while keeping prices low for customers.
The financial statement for the first half of its financial year showed that the group’s revenue increased by 7.1%, up from R129.7-billion in the same period last year.
The group’s core South African supermarket business division, which accounts for 84.3% of total sales, increased sales by 7.1% to R115.3-billion, up from R107.7-billion a year earlier.
The company generated a 3.5% profit increase to R7.6-billion.
The supermarket segment, Shoprite and Usave, which largely target low-income earners, recorded sales growth of 5.1%, despite slight price deflation, while Checkers and Checkers Hyper grew sales by 8.9%, supported by modest price increases and higher customer volumes.
According to the financial results, the Sixty60 on-demand grocery delivery platform continued to expand rapidly, with sales rising 34.6% to R11.9-billion for the six-month period.
Smaller adjacent businesses, including Petshop Science, Uniq Clothing by Checkers, Checkers Outdoor, and Little Me, increased sales by 70.9% but they remain small in relation to the wider group.
Focus on customer affordability
Pieter Engelbrecht, Shoprite Holdings chief executive, said the results reflected the group’s continued focus on price leadership and customer affordability.
“Outside South Africa, Supermarkets Non-RSA delivered 12.1% sales growth; however, constant currency sales growth measured 9.5%.
“From a profitability perspective, this segment’s performance remains challenging, notably impacted this period by adverse conditions in Mozambique.
“We continue to maintain a disciplined approach to capital allocation as well as portfolio focus, and following the recent classification of our operations in Ghana and Malawi as discontinued operations, our scope of operations on the continent now numbers seven countries, all situated relatively close to our South African home base,” said Engelbrecht.
He said growing sales, diluted headline earnings per share, and dividends in an environment of minimal price inflation and rising costs was a notable achievement.
“Reflecting on the group’s growth in sales, DHEPS and dividends for this half year in the context of little to no selling price inflation, deflation and rising costs is commendable.”
Over the past 12 months, the group opened 273 new stores and created 1 711 new direct jobs during the reporting period.
