Wrap Text
Trading statement for the 53 weeks ended 4 July 2021
SHOPRITE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Reg. No. 1936/007721/06
ISIN: ZAE000012084
JSE share code: SHP
NSX share code: SRH
LuSE share code: SHOPRITE
("the Group")
TRADING STATEMENT FOR THE 53 WEEKS ENDED 4 JULY 2021
For the 53 weeks to 4 July 2021 the Shoprite Group increased total sale
of merchandise from continuing operations by 8.1% to approximately
R168.0 billion (52 weeks: 5.9% to R164.5 billion). Excluding the impact
of the closure of the RSA LiquorShop business due to COVID-19 lockdown
regulations, the Group increased total sale of merchandise from
continuing operations by 8.3% (52 weeks: 5.9% to R157.1 billion).
2021 Sales growth over the
restated 52-week corresponding
period last year
Restated* Total Restated*
52 weeks 53 weeks H1 ended H2 ended
Approximate sales June 2020 June 2021 Dec 2020 June 2021
from continuing operations Rbn % % %
Total Group (including
Supermarkets RSA LiquorShop)* 155.4 8.1 4.8 11.5
Total Group (excluding
Supermarkets RSA LiquorShop)* 148.3 8.3 6.5 10.1
By Segment:
Supermarkets RSA
(including LiquorShop) 122.4 9.3 5.6 13.2
Supermarkets RSA
(excluding LiquorShop) 9.7 7.8 11.5
Supermarkets Non-RSA* 16.7 -7.5 -7.9 -7.1
Furniture 5.5 24.6 15.7 38.6
Other operating segments 10.8 10.0 10.0 10.1
Total operating segments* 155.4 8.1 4.8 11.5
* Restated for discontinued operations in accordance with IFRS 5.
Refer to the update on discontinued operations mentioned below.
The following information provides context to overall sale of merchandise
growth from continuing operations for the 53-week period:
Supermarkets RSA
- The Group's core business, Supermarkets RSA, contributing 79.7% to
sales from continuing operations, achieved sales growth of 9.3%
(first half sales growth 5.6%, second half sales growth 13.2%).
Like-for-like sales grew 7.3%.
- Supermarkets RSA, excluding LiquorShop, achieved sales growth of
9.7% (first half sales growth 7.8%, second half sales growth 11.5%).
Like-for-like sales for the year measured 7.5%.
- Checkers and Checkers Hyper reported sales growth of 10.9% (first half
sales growth 11.1%, second half sales growth 10.8%). This is
notwithstanding the high base reported for the second half period
last year.
- Shoprite and Usave reported sales growth of 8.8% (first half sales
growth 5.6%, second half sales growth 12.0%).
- The Group's LiquorShop business' sales increased by 4.4% (first half
sales decline 21.8%, second half sales growth 53.6%). Growth was
significantly impacted by the mandated liquor trade closures forming
part of COVID-19 lockdown regulations. In total our LiquorShop business
was closed for 144 days over the 53 weeks (79 days during the first
half and 65 days during the second half).
- Internal selling price inflation measured 3.8%, a result of second
half inflation declining to 3.4% from the 4.3% reported for the first
half.
- Supermarkets RSA opened a net of 87 stores.
Supermarkets Non-RSA
- Supermarkets Non-RSA continued to operate in regions challenged by
macroeconomic and consumer affordability constraints, exacerbated by
the impact of COVID-19 restrictions and regulations. Notwithstanding
these factors, constant currency sales from continuing operations
increased by 6.8%.
- Currency devaluation continues to weigh on reported sales. In rand
terms, Supermarkets Non-RSA's sales from continuing operations declined
by 7.5%.
- Supermarkets Non-RSA continuing operations opened a net of five stores.
Furniture
- The Group's Furniture segment, made up of OK Furniture and House & Home,
increased sales by 24.6% (first half sales grew 15.7%, second half
sales grew 38.6%). Like-for-like sales grew 13.5%.
- Credit sales participation declined to 12.6% (2020: 13.3%).
- The Furniture segment closed a net of 16 stores.
Other operating segments
- The Group's Other operating segments, comprising OK Franchise,
Transpharm, MediRite Pharmacies, Checkers Food Services (CFS) and
Computicket, reported sales growth of 10.0%.
- The Group's OK Franchise division achieved sales growth of 8.2% and
added a net of 36 stores.
Update on discontinued operations
As previously communicated, the terms of sale of our Retail Supermarkets
Nigeria Limited (RSNL) subsidiary have been concluded and our Kenyan
operations have been closed. RSNL was classified as discontinued during the
second half of the 2020 financial year and the classification of our Kenyan
operations as discontinued became effective during the second half of the
2021 financial year.
Furthermore, in line with the Group's Non-RSA review process, our operations
in Madagascar and Uganda have been classified as discontinued. In accordance
with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations,
the comparative statement of comprehensive income for 2020 has been
restated. Consequently, the growth in the above table, for both the interim
and final year comparatives, is based on the restated comparative figures
from continuing operations. It is for this reason that the restated negative
sales growth from continuing operations of 7.9% for the Group's Supermarkets
Non-RSA segment for the first half ended December 2020 is different to that
reported at our interim results announcement earlier this year, as it now
also excludes the discontinued operations of Kenya, Madagascar and Uganda.
Earnings guidance
Shareholders are advised that basic earnings per share ('EPS'), basic
headline earnings per share ('HEPS') and adjusted basic HEPS for the 53
weeks ended 4 July 2021 are expected to be within the ranges reflected in
the table below. To facilitate comparison, we have included adjusted basic
HEPS which excludes the after-tax effect of exchange rate differences,
profit on lease modifications and terminations as well as hyperinflation
adjustments.
Estimated Restated* Expected
June 2021 June 2020 change
cents cents %
Earnings including
discontinued operations:
Basic EPS 847.2 to 907.8 606.9 39.6 to 49.6
Basic HEPS 939.3 to 1 014.9 756.9 24.1 to 34.1
Adjusted basic HEPS** 858.6 to 928.8 701.8 22.3 to 32.3
Earnings from
continuing operations:
Basic EPS 816.7 to 886.5 697.5 17.1 to 27.1
Basic HEPS 916.6 to 996.0 794.7 15.3 to 25.3
Adjusted basic HEPS** 850.6 to 924.0 733.6 15.9 to 26.0
* Restated for discontinued operations in accordance with IFRS 5.
Refer to the update on discontinued operations mentioned above.
** The adjusted basic HEPS and continuing operations information provided,
constitutes pro forma financial information in terms of the JSE Listings
Requirements.
Impact of the Group's pro forma constant currency disclosure
The Group discloses unaudited constant currency information to indicate the
Supermarkets Non-RSA operating segment performance in terms of sales growth,
excluding the effect of foreign currency fluctuations. To present this
information, current period sales for entities reporting in currencies other
than ZAR are converted from local currency actuals into ZAR at the prior
year's actual average exchange rates on a country-by-country basis.
The table below sets out the percentage change in sales, based on the actual
results for the period in reported currency and constant currency for the
following major currencies. The total impact on Supermarkets Non-RSA is also
reflected after consolidating all currencies in this segment.
Reported Constant
% Change in sales on prior period 52 weeks currency currency
Angola kwanza -37.2 -12.6
Mozambique metical -11.3 -3.3
Zambia kwacha -11.8 25.2
Supermarkets Non-RSA including discontinued operations -8.8 3.7
Supermarkets Non-RSA continuing operations -7.5 6.8
Statement on pro forma financial information
The pro forma financial information contained in this announcement, which
is the responsibility of the Group's directors, has been prepared for
illustrative purposes only and may not fairly present the Group's financial
position, changes in equity, cash flows or results of operations.
The information contained in this announcement has not been reviewed or
reported on by the Group's external auditors.
Group year-end results release, presentation timing and invitation
registration link
The Group plans to publish its 2021 year-end results on SENS by 8h00
on Tuesday, 7 September 2021.
The 2021 results webcast presentation will follow at 9h00. Shoprite
welcomes all who would like to register for the webcast to do so via
http://www.corpcam.com/shoprite07092021. Alternatively, registration via the
company website www.shopriteholdings.co.za will be possible.
23 August 2021
Cape Town
Sponsor: Nedbank Corporate and Investment Banking, a division of
Nedbank Limited
Shoprite Holdings Limited Tel: 021 980 4000
Natasha Moolman - Group Investor Relations Manager
Anton de Bruyn - Chief Financial Officer
Pieter Engelbrecht - Chief Executive Officer
Date: 23-08-2021 08:00:00
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