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Unaudited Group results for the 26 weeks ended 2 January 2022
SHOPRITE HOLDINGS LIMITED
(Reg. No. 1936/007721/06)
(ISIN: ZAE000012084)
(JSE Share code: SHP)
(NSX Share code: SRH)
(LuSE Share code: SHOPRITE)
("the Group")
UNAUDITED GROUP RESULTS FOR THE 26 WEEKS ENDED 2 JANUARY 2022
Pieter Engelbrecht, Chief Executive Officer
The extraordinary growth in sales and profits reported by the Group for the
first half of our 2022 year is testament to the capable people of Shoprite,
united in their commitment to the Group's millions of customers throughout
South Africa and Africa. The execution strength demonstrated throughout our
supermarket, furniture and franchise businesses during what can only be
described as some of the most difficult times South Africa has seen for many
years was unsurpassed. Similarly, our supermarket business outside South
Africa has sustained its profitability. All credit to our teams who operate
in these regions which, in their own right, can be extremely challenging.
Our South African supermarket business, representing 79.5% of Group sales,
increased sales by 11.3%. Despite having two of our large format Checkers
Hypers still closed due to the July 2021 civil unrest, all of our
supermarket brands grew sales ahead of the market. Shoprite and Usave, which
together make up 52.5% of our Supermarkets RSA operating segment increased
sales by 7.3%. Checkers and Checkers Hyper, which make up 40.0% of
Supermarkets RSA sale of merchandise, increased sales by 11.4%. After being
closed for much of last year due to lockdown regulations our Shoprite and
Checkers LiquorShop business, which constitutes 7.4% of the segment's sales,
increased by 49.8%.
The continued momentum and customer support demonstrated by all our
supermarket brands is particularly gratifying given our relentless focus on
affordability. Our low-price promise continues to guide our daily decision
making, evidenced by our 2.6% selling price inflation for the Supermarkets
RSA segment for the six months. In addition to this, our 23.1 million
customers who have joined the Shoprite and Checkers Xtra Savings Rewards
Programme have saved R4.5 billion during this six-month period alone.
We've continued to strengthen our core supermarket business by opening new
stores, updating existing stores, introducing new products and bringing new
trading formats to the market. We've also evolved our fintech business and
ShopriteX, the Group's tech and innovation hub, which has continued to raise
the bar with numerous initiatives.
Delivering a 25.5% headline earnings per share growth from continuing
operations in a difficult environment is a result of world-class execution
of a clear plan, underscored by our daily obsession with affordability for
our customers. It is a goal that keeps us grounded, aligned and motivated as
we move forward to better the lives of customers and we look forward to
building on this in the years to come.
Restated*
Change 2 Jan 27 Dec
Key information - continuing operations % 2022 2020
Sale of merchandise (Rm) 10.0 91 125 82 820
Trading profit (Rm) 14.5 5 422 4 737
Operating profit (Rm) 15.4 5 113 4 432
Profit before income tax (Rm) 28.4 3 901 3 039
Income tax expense (Rm) 34.1 1 203 897
Profit for the period (Rm) 26.0 2 698 2 142
Attributable to owners of the parent (Rm) 2 682 2 131
Attributable to non-controlling interest (Rm) 16 11
Basic headline earnings per share (cents) 25.5 522.6 416.5
Basic earnings per share (cents) 27.2 491.2 386.1
Dividend per share (cents) 22.0 233.0 191.0
Profit for the period including discontinued
operations (Rm) 22.3 2 730 2 232
Attributable to owners of the parent (Rm) 2 714 2 221
Attributable to non-controlling interest (Rm) 16 11
Basic headline earnings per share including
discontinued operations (cents) 23.1 528.4 429.3
Basic earnings per share including
discontinued operations (cents) 23.5 497.0 402.3
* Restated for the classification of the Group's Kenyan, Ugandan and
Madagascan operations as discontinued operations in accordance with
IFRS 5: Non-current Assets Held for Sale and Discontinued Operations.
Declaration of ordinary dividend
The Board has declared an interim dividend of 233 cents (2021: 191 cents)
per ordinary share, payable to shareholders on Monday, 11 April 2022.
The dividend has been declared out of income reserves. The last day to
trade cum dividend will be Tuesday, 5 April 2022. As from Wednesday,
6 April 2022, all trading of Shoprite Holdings Ltd shares will take place
ex dividend. The record date is Friday, 8 April 2022. Share certificates
may not be dematerialised or rematerialised between Wednesday,
6 April 2022, and Friday, 8 April 2022, both days inclusive.
In terms of the Dividends Tax, the following additional information is
disclosed:
1. The local dividend tax rate is 20%.
2. The net local dividend amount is 233 cents per share for shareholders
exempt from paying Dividends Tax and 186.4 cents per share for
shareholders liable to pay Dividends Tax.
3. The issued ordinary share capital of Shoprite Holdings Ltd as at the
date of this declaration is 591 338 502 ordinary shares.
4. Shoprite Holdings Ltd's tax reference number is 9775/112/71/8.
About this announcement
This short-form announcement is the responsibility of the Directors of
Shoprite Holdings Ltd. It is only a summary of the information in the
condensed consolidated interim financial statements and does not contain
full or complete details. Any investment decisions by investors and/or
shareholders should be based on consideration of the condensed consolidated
interim financial statements published on the Stock Exchange News Service
(SENS) and www.shopriteholdings.co.za as a whole.
The condensed consolidated interim financial statements have been released
on the JSE
(https://senspdf.jse.co.za/documents/2022/jse/isse/SHP/ie2021.pdf)
and are also available for viewing at
https://www.shopriteholdings.co.za/content/dam/SENS/INT2021-Mar2022.pdf.
Copies of the condensed consolidated interim financial statements may be
requested from the Company Secretary (cosec@shoprite.co.za,
tel +27 (0)21 980 4284) at PO Box 215, Brackenfell, 7561, South Africa.
By order of the Board
WE Lucas-Bull PC Engelbrecht
Chairman Chief Executive Officer
Cape Town
8 March 2022
Sponsor: Nedbank Corporate and Investment Banking, a division of Nedbank
Limited
Date: 08-03-2022 08:00:00
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