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Unaudited results for the 26 weeks ended 1 January 2023
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 results for the 26 weeks ended 1 January 2023
Pieter Engelbrecht, Chief Executive Officer
It is gratifying to report growth of this nature despite the challenging
operating environment defined by chronic power outages across South Africa.
Our Supermarkets RSA segment (80.1% of Group sales) increased sales by 17.5%
as a result of our customers spending R12.7 billion more with us compared to
the same period last year. Pleasingly, this growth was achieved across the
board, with key brands Shoprite and Usave increasing sales by 15.1% and
Checkers and Checkers Hyper increasing sales by 16.9%. In both instances
this is growth ahead of the market, adding 1.4% to our South African market
share as the business grew volumes, customers and basket spend. We are
acutely aware of the pressures our customers face and we thank them for
their valued support in recognition of our commitment to price leadership.
We are disappointed that due to the considerable spend on diesel to operate
generators across our stores during load-shedding, we are not reporting the
level of profit and dividend growth that would normally be associated with
this level of sales growth. Despite this, we managed the needs of all of our
stakeholders by investing R7 billion into price for customers, increasing
our dividend to shareholders by 6.4% and investing further in our people
with an across-the-board minimum wage increase and payments associated with
our Shoprite Employee Trust in South Africa and equivalent awards in
countries outside South Africa. In line with the Group's pro-job creation
stance, we employed an additional 3 881 people in our supermarket businesses
during the period, not including the 4 480 people we employed from
January 2023 as part of our purchase of select businesses from Massmart
Holdings Ltd.
Group results of this nature are only possible due to the incredible
commitment and efforts of our people, Team Shoprite, who are to be commended
for their teamwork and world-class execution. We look forward to continuing
on our strategic path which keeps us firmly committed to meeting the needs
of our valued customers for many years to come.
Restated*
Change 1 Jan 2 Jan
Key information - continuing operations % 2023 2022
Sale of merchandise (Rm) 16.8 106 276 91 015
Trading profit (Rm) 8.6 6 014 5 540
Operating profit (Rm) 18.7 6 212 5 233
Profit before income tax (Rm) 20.8 4 742 3 926
Income tax expense (Rm) 22.8 1 475 1 201
Profit for the period (Rm) 19.9 3 267 2 725
Attributable to owners of the parent (Rm) 3 254 2 709
Attributable to non-controlling interest (Rm) 13 16
Headline earnings per share (cents) 10.2 581.3 527.4
Basic earnings per share (cents) 20.9 599.5 496.0
Dividend per share (cents) 6.4 248.0 233.0
Profit for the period including discontinued
operations (Rm) 14.7 3 130 2 730
Attributable to owners of the parent (Rm) 3 117 2 714
Attributable to non-controlling interest (Rm) 13 16
Headline earnings per share including
discontinued operations (cents) 6.4 562.3 528.4
Basic earnings per share including discontinued
operations (cents) 15.6 574.3 497.0
* Restated for the classification of the Group's DRC operations as
discontinued operations in accordance with IFRS 5: Non-current Assets
Held for Sale and Discontinued Operations and the reclassification of
share of profit of equity accounted investments to trading profit which
previously was included in profit before income tax.
Declaration of ordinary dividend
The Board has declared an interim dividend of 248 cents (H1 2022: 233 cents)
per ordinary share, payable to shareholders on Tuesday, 11 April 2023.
The dividend has been declared out of income reserves. The last day to trade
cum dividend will be Monday, 3 April 2023. As from Tuesday, 4 April 2023,
all trading of Shoprite Holdings Ltd shares will take place ex dividend.
The record date is Thursday, 6 April 2023. Share certificates may not be
dematerialised or rematerialised between Tuesday, 4 April 2023, and
Thursday, 6 April 2023, 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 248 cents per share for shareholders
exempt from paying Dividends Tax and 198.4 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/2023/jse/isse/SHP/ie2023.pdf) and are
also available for viewing at
https://www.shopriteholdings.co.za/content/dam/SENS/INT2023-Mar2023.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
7 March 2023
Sponsor: Nedbank Corporate and Investment Banking, a division of Nedbank
Limited
Date: 07-03-2023 08:00:00
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