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SHOPRITE HOLDINGS LIMITED (REGISTRATION NO 05/07721/06)
INTERIM PROFIT ANNOUNCEMENT FOR THE 6 MONTHS ENDED 31 DECEMBER 1997 - HEADLINE EARNINGS GROWTH 19,4% - NUMBER OF OUTLETS: 528 CONSOLIDATED INCOME STATEMENT
UNAUDITED UNAUDITED % AUDITED 6 MONTHS TO 6 MONTHS TO CHANGE 12 MONTHS TO 31/12/97 31/12/96 30/06/97 (R'000) 26 WEEKS 27 WEEKS
TURNOVER 6 455 773 4 788 501 34,89 365 493 OPERATING PROFIT BEFORE
EXCEPTIONAL ITEMS 111 323 107 196 3,8 200 045 EXCEPTIONAL ITEMS 663 19 486 15 804 OPERATING PROFIT AFTER
EXCEPTIONAL ITEMS 111 986 126 682 215 849 FINANCE CHARGES 21 258 18 094 17,5 45 837 PROFIT BEFORE TAXATION 128 715 152 286 271 472 TAXATION 24 217 47 040 (48,5) 88 103 PROFIT AFTER TAXATION 104 498 105 2461 83 369 OUTSIDE SHAREHOLDERS'
INTEREST 2 637 1 911 2 643
NET PROFIT 101 861 103 335 180 726 HEADLINE EARNINGS PER SHARE
(CENTS) 19.7 16.5 19,4 32.3 EARNINGS PER SHARE (CENTS) AFTER
EXCEPTIONAL ITEMS 19.8 20.3 35.6 DISTRIBUTION TO SHAREHOLDERS
(CENTS PER SHARE) 6.5 6.5 13.0
DIVIDEND COVER (TIMES) 3.0 2.5 2.5 NUMBER OF ORDINARY SHARES ('000) USED FOR CALCULATION OF EARNINGS
PER SHARE(WEIGHTED AVERAGE*) 513 937 508 277 508 277 UNAUDITED UNAUDITED AUDITED (R'000) 31/12/97 31/12/96 30/06/97 ORDINARY SHAREHOLDERS'
FUNDS 1 087 642 508 934 554 491 PREFERENCE SHARE CAPITAL 2 450 2 450 2 450 OUTSIDE SHAREHOLDERS'
INTEREST 16 831 6 913 7 569
INTEREST-BEARING DEBT 215 426 225 756 208 309 CAPITAL EMPLOYED 1 322 349 744 053 772 819 FIXED ASSETS 1 020 164 601 135 617 693 INVESTMENTS 347 705 253 412 297 683 CURRENT ASSETS 3 526 180 1 483 845 1 565 916 INVENTORIES 2 062 454 824 740 925 967 ACCOUNTS RECEIVABLE 1 198 892 235 847 284 085 BANK BALANCES AND CASH 264 834 423 258 355 864 TOTAL ASSETS 4 894 049 2 338 392 2 481 292 INTEREST-FREE LIABILITIES 3 571 700 1 594 339 1 708 473 EMPLOYMENT OF CAPITAL 1 322 349 744 053 772 819 CONSOLIDATED CASH FLOW
6 MONTHS TO 6 MONTHS TO 12 MONTHS TO (R'000) 31/12/97 31/12/96 30/06/97 CASH GENERATED/(UTILISED)
BY OPERATIONS 179 316 (101 931) (43 150) NET INVESTMENT INCOME 2 930 14 751 30 932 DIVIDENDS RECEIVED 13 799 10 853 24 692 DIVIDENDS PAID (33 115) - (33 537) CASH FLOW FROM OPERATIONS 162 930 (76 327) (21 063) INVESTMENT ACTIVITIES (174 085) (92 862) (198 072) ACQUISITION OF FIXED ASSETS (124 262) (81 206) (179 429) OTHER INVESTMENT ACTIVITIES (49 823) (11 656) (18 643) NET CASH FLOW (11 155) (169 189) (219 135) FINANCING ACTIVITIES (86 947) (15 475) (32 923) PROCEEDS ON SHARE ISSUE 332 991 - -
NET DEBT REPAID (419 938) (15 475) (32 923) MOVEMENT IN BANK BALANCES
AND CASH (98 102) (184 664) (252 058) ACQUIRED THROUGH ACQUISITION
OF OPERATIONS 7 072 - -
AND CASH (91 030) (184 664) (252 058) SUPPLEMENTARY INFORMATION
UNAUDITED UNAUDITED AUDITED 6 MONTHS TO 6 MONTHS TO 12 MONTHS TO (R'000) 31/12/97 31/12/96 30/06/97 1. DEPRECIATION FOR
THE PERIOD 56 756 41 271 85 406 2. DIVIDENDS RECEIVED (INCLUDED IN INVESTMENT
INCOME) 13 799 10 853 24 692 3. CAPITAL EXPENDITURE
FOR THE PERIOD 124 262 81 206 179 429 31/12/97 31/12/96 30/06/97 4. COMMITMENTS FOR CAPITAL
EXPENDITURE CONTRACTED FOR 43 600 98 223 47 749 5. INVESTMENTS: - UNLISTED P AT COST AND
DIRECTORS' VALUATION 344 434 250 141 294 412 - LISTED P AT COST 3 271 3 271 3 271
6. CURRENT LIABILITIES 3 607 772 1 624 808 1 743 593 7. NUMBER OF ORDINARY
SHARES IN ISSUE 543 479 508 277 508 277 8. CONTINGENT LIABILITIES 3 637 3 391 4 360 9. NET ASSET VALUE PER
SHARE (CENTS) 200 100 109 COMMENTS ON THE RESULTS
1. IN COMPARING THE RESULTS FOR THE PERIOD TO 31 DECEMBER 1997 WITH THOSE TO 31 DECEMBER 1996 ONE MUST BEAR IN MIND THAT THE RESULTS OF OK BAZAARS (1929) (PTY) LTD ("OK BAZAARS") ARE INCLUDED AS FROM 1 NOVEMBER 1997, AND ALSO THAT THE PREVIOUS PERIOD INCLUDED AN EXTRA TRADING WEEK.
2. THE BOARD IS OF THE OPINION THAT, SHOULD THESE FACTORS BE EXCLUDED, ALL THE SEGMENTS SHOWED SATISFACTORY GROWTH IN BOTH TURNOVER AND OPERATING PROFIT, ESPECIALLY IF VIEWED IN THE LIGHT OF A LOW INFLATION RATE.
3. THE DECREASE IN INVESTMENT INCOME IS ATTRIBUTABLE TO THE FACT THAT THE GROUP'S CASH WAS EMPLOYED TO REDEEM INTEREST-BEARING DEBT OF OK BAZAARS INCURRED IN FINANCING HIRE-PURCHASE DEBTORS. NET INCOME EARNED FROM THESE DEBTORS IS SHOWN UNDER OPERATING INCOME.
4. THE REDUCTION IN TAX IS DUE TO THE AVAILABILITY OF CALCULATED TAX LOSSES IN 5. THE INCREASE IN ASSETS AND LIABILITIES IS A DIRECT RESULT OF THE ACQUISITION OF OK BAZAARS. APART FROM THE EMPLOYMENT OF CASH FOR REDEEMING INTEREST-BEARING DEBT ALREADY REFERRED TO, THERE WAS NO OTHER MATERIAL CHANGE WORTH MENTIONING IN THE ASSETS AND LIABILITIES OF THE GROUP. PROSPECTS
ALTHOUGH A GREAT DEAL REMAINS TO BE DONE, IT IS ANTICIPATED THAT OK BAZAARS WILL MAKE A CONTRIBUTION TO THE GROUP'S OPERATING PROFIT IN THE NEXT FINANCIAL YEAR. THE BOARD EXPECTS THE SATISFACTORY RESULTS OF THE OTHER BUSINESS UNITS TO CONTINUE IN THE SECOND PERIOD OF SIX MONTHS. DIVIDENDS
IT IS ENVISAGED THAT AN INTERIM DIVIDEND OF 6.5 CENTS PER SHARE WILL BE DECLARED TOWARDS THE END OF MARCH 1998. BY ORDER OF THE BOARD C H WIESE J W BASSON CHAIRMAN MANAGING DIRECTOR 23 FEBRUARY 1998 C/O WILLIAM DABS AND OLD PAARL ROAD BRACKENFELL
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