Wrap Text
Trading statement for the 52 weeks ended 29 June 2025
Shoprite Holdings Limited
(Reg. No. 1936/007721/06)
(ISIN: ZAE000012084)
(JSE Share code: SHP)
(A2X Share code: SHP)
(NSX Share code: SRH)
(LuSE Share code: SHOPRITE)
("Shoprite Holdings" or "the Group")
Trading statement for the 52 weeks ended 29 June 2025
The results and guidance referred to in this update pertain to the 52 weeks
ended 29 June 2025 ("the period", "the year", or "the 12 months") and
report the Group's results on a total operations as well as continuing
operations basis.
Earnings guidance
In accordance with section 3.4(b) of the JSE Limited Listings Requirements,
Shoprite Holdings advises shareholders that the Group's basic earnings per
share (EPS) and headline earnings per share (HEPS) from total operations
for the year are expected to increase by more than 20% when compared to the
restated prior period.
The difference between total and continuing operations demonstrates the
Group's continued focus on our omnichannel growth strategy, powered by our
core RSA supermarkets business. This resulted in the following businesses
being classified as discontinued in accordance with IFRS 5: Non-Current
Assets Held for Sale and Discontinued Operations (IFRS 5): i) the Group's
furniture businesses in Mozambique and Angola (closed and held for sale
respectively); ii) the Group's Malawi operations (held for sale) and, iii)
the Group's Ghana operations (held for sale). As such, the results for the
52 weeks ended 30 June 2024 ("the prior period") have been restated.
This is the second restatement of the Group's prior period results, the
first was as part of our 2025 interim results reporting as a result of the
proposed sale of our furniture business (excluding Angola and Mozambique)
to Pepkor Holdings Ltd ("Pepkor"). For ease of reference, please refer to
Appendix A which provides our prior period reported condensed consolidated
statement of comprehensive income and both subsequent restatements.
When reviewing the Group's high-level performance outlined in this
announcement, please refer to "Additional information" for further
information pertaining to the Group's reporting as a result of acquisitions,
disposals and classification of discontinued operations.
The table below outlines the Group's previously reported and subsequently
restated sales, basic EPS, HEPS and diluted HEPS. Furthermore, in addition
to the 2025 Group sales we provide a guidance range for the Group's 2025
basic EPS, HEPS and diluted HEPS. Contributing to the difference in the
expected growth in total operations versus continuing operations' earnings
is the prior year Ghana net monetary gain as well as the growth in
profitability of our furniture business, now classified as discontinued
operations.
June 2024
June 2024 Restated2
Restated1 as part of
as reported the 2025
interim full-year June 2025 Expected
period 2025 results Estimated change
Total operations:
Sale of merchandise R240.7 bn R240.7 bn R262.3 bn 9.0%
Basic EPS 1 148.6 cents 1 148.6 cents 1 343.8 to 17.0% to
1 458.6 cents 27.0%
HEPS 1 191.4 cents 1 191.4 cents 1 372.0 to 15.2% to
1 491.2 cents 25.2%
Diluted HEPS 1 186.3 cents 1 186.3 cents 1 367.1 to 15.2% to
1 485.7 cents 25.2%
Continuing operations:
Sale of merchandise R234.0 bn R232.1 bn R252.7 bn 8.9%
Basic EPS 1 170.4 cents 1 149.5 cents 1 294.1 to 12.6% to
1 409.1 cents 22.6%
HEPS 1 213.7 cents 1 185.3 cents 1 297.2 to 9.4% to
1 415.8 cents 19.4%
Diluted HEPS 1 208.6 cents 1 180.2 cents 1 292.6 to 9.5% to
1 410.6 cents 19.5%
1 Restated as part of the December 2024 interim results reporting due to
the classification of the Group's furniture business (excluding Angola
and Mozambique) as discontinued in accordance with IFRS 5.
2 Restated as part of the 2025 year-end reporting due to the Group's
remaining furniture operations in Angola and Mozambique together with
the Group's Malawi and Ghana operations now also classified as
discontinued in accordance with IFRS 5.
Sale of merchandise from continuing operations
For the 12 months ended 29 June 2025, Shoprite Holdings increased sale
of merchandise from continuing operations by 8.9%, measuring approximately
R252.7 billion. This growth was achieved against the Group's restated
R232.1 billion sales from continuing operations for the 12 months ended
30 June 2024.
Sales growth per segment is outlined below:
2025 sales growth over the
corresponding period last year
52 weeks
2025
compared Restated*
Restated* to H1 ended H2 ended
52 weeks 52 weeks 29 Dec 29 Jun
2024 2024 2024 2025
Rm % % %
Approximate sales from
continuing operations
Group 232 088 8.9 9.7 8.1
By segment:
Supermarkets RSA 195 041 9.5 10.4 8.5
Supermarkets Non-RSA 19 329 6.4 5.2 7.6
Other operating segments 17 718 5.2 6.8 3.5
* Restated for the classification of the Group's furniture business,
Malawi and Ghana operations as discontinued operations in accordance
with IFRS 5.
The following information provides context for the overall sales growth from
continuing operations for the year:
Supermarkets RSA
- The Group's core business, Supermarkets RSA, achieved sales growth of
9.5%, extending its unbroken market share gains to now its
5th consecutive year. As a segment it contributes 84.5% to Group sales.
- Like-for-like sales (i.e. same-store sales) growth for the year
measured 4.8%.
- Internal selling price inflation averaged 2.3% for the year (first
half period 1.9%; second half period 2.7%).
- Checkers and Checkers Hyper, inclusive of Checkers LiquorShop, reported
sales growth of 13.8%.
- Online sales through our on-demand delivery platform, Sixty60, have
increased by 47.7%.
- Shoprite and Usave, inclusive of Shoprite LiquorShop, reported sales
growth of 5.9%.
- In terms of new store openings, our core RSA operations opened 194 main
banner supermarkets this year: 43 Shoprite stores, 38 Usave stores,
29 Checkers stores and three Checkers Hyper stores. In addition,
our LiquorShop business added 36 Checkers and 45 Shoprite LiquorShops
respectively.
- We continue to expand our footprint as part of our omnichannel growth
strategy designed to extend our reach in adjacent categories where we
are currently under-represented: Petshop Science added 60 new stores
to total 144 stores; Checkers Outdoor added eight new stores to total
28 stores; Uniq clothing by Checkers added 10 new stores to total
30 stores and Little Me opened one new store to total 11 stores.
Supermarkets Non-RSA
- In the Group's reporting currency, the rand, Supermarkets Non-RSA's
sales increased by 6.4%. This equates to an 8.1% contribution to Group
sales.
- In constant currency, Supermarkets Non-RSA increased sales by 14.2%.
- Supermarkets Non-RSA's store base increased by a net 14 stores to total
268 stores operating in seven countries.
Other operating segments
The Group's Other operating segments comprises OK Franchise, Transpharm,
Medirite, Red Star Wholesale Catering Services and Computicket.
- The segment reported sales growth of 5.2% for the period, representing
7.4% of Group sales.
- Sales to the Group's OK Franchise business increased by 6.7%. After
opening a net seven stores (2024: 73 stores, owing to the onboarding of
one franchise partner with 60 stores) the OK Franchise division ended
the year with 615 stores.
- The Group opened five Medirite Plus standalone drug stores during the
period to end the year with 18 stores in this new format, over and above
the 122 Medirite in-store pharmacies located within our core South
African supermarkets business.
Additional information
We highlight the following for consideration in terms of the Group's 2025
results:
1. Purchase of the remaining 50% shareholding in
Pingo Delivery (Pty) Ltd ("Pingo")
Following the acquisition during the first half period of the remaining
50% share capital of Pingo, the Group's last-mile logistics provider,
the Group assumed responsibility for both sale of merchandise and
delivery to clients. As a result, this delivery income and the
Xtra Savings Plus subscription income earned, together with the related
delivery expenses incurred subsequent to the acquisition, are classified
as part of sale of merchandise and cost of sales respectively.
2. Furniture segment classified as discontinued
Sale of furniture business to Pepkor: The Group signed an agreement
on 2 September 2024 to dispose of the furniture business including the
OK Furniture and House and Home brands (excluding Angola and Mozambique
operations) to Pepkor in order to ensure the long-term sustainability
of this business. The proposed transaction was approved by all relevant
authorities in the applicable non-South African territories, and a
positive recommendation was made by the South African Competition
Commission to the South African Competition Tribunal. Following the
South African Competition Tribunal's granting of an application to
intervene as a participant in the matter by Lewis Stores (Pty) Ltd.,
the proposed transaction has been delayed. Pepkor and Shoprite have
noted their appeal decision with the Competition Appeal Court. The
Group considers it highly probable that these operations will be
disposed of and per our first half period disclosure, they remain
classified as discontinued operations in accordance with IFRS 5.
Accordingly, these operations' results are excluded from the Group's
continuing operations sales for the year as well as the prior period.
Mozambique and Angola furniture: With regards to the Group's Mozambique
and Angola furniture business excluded from the above-mentioned sale
to Pepkor, the decision was taken to close Mozambique furniture (this
took effect during our second half period) and sell Angola furniture.
In accordance with IFRS 5, both businesses have been classified as
discontinued operations.
3. Malawi and Ghana operations classified as discontinued
Our operations in Malawi and Ghana have been classified as discontinued
operations in terms of IFRS 5:
i) Malawi: Shoprite Malawi signed a sale of assets agreement on
6 June 2025 to dispose of the assets used in relation to its
operations, which consists of five trading stores. The agreement is
pending the fulfilment of conditions precedent to be met during
October 2025, including approval from the Competition and
Fair Trading Commission as well as the Reserve Bank of Malawi.
ii) Ghana: The Group received a binding offer during June 2025 to
dispose of the assets and liabilities in relation to the operations
in Ghana, which consists of seven trading stores and one warehouse.
The sale is deemed highly probable, and the operations have
therefore been classified as discontinued in terms of IFRS 5.
4. Net finance charges
Net finance charges for the period have increased at a rate similar to
that reported for our first half period. Whilst a function of lower
interest earned year-on-year, the increase is mostly due to lease
liability finance charges in terms of IFRS 16: Leases (IFRS 16). These
relate to new distribution centre leases, store openings (new leases)
and lease renewals, resulting in the Group's IFRS 16 related finance
charges for the twelve months increasing at a rate similar to that
reported for our first half period.
5. Update on Group share buy-back programme
During the first half period the Group repurchased shares to the value
of R997 million at an average share price of R289.29. There were no
repurchases during the second half period. The Group's weighted average
number of ordinary shares adjusted for dilution for the 12 months
measures 543 million (2024: 546 million).
Pro forma financial information
The pro forma financial information contained in this announcement is the
responsibility of the Group's Board of Directors and has been prepared for
illustrative purposes only. It may not fairly present the Group's
financial position, changes in equity, results of operations or cash flows.
1. Like-for-like sales growth is a measure of the growth in the Group's
year-on-year sales, removing the impact of new store openings and
closures.
2. The Group discloses constant currency information to indicate the
Supermarkets Non-RSA operating segment's performance in terms of sales
growth, excluding the impact of foreign currency fluctuations and
hyperinflation. To present this information, the current period's
sales for entities reporting in currencies other than South Africa rand
are converted from local currency actuals into South Africa rand at the
prior period'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 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 the prior period 52 weeks currency currency
Angola kwanza 13.4 27.3
Mozambique metical (1.0) 2.1
Zambia kwacha (3.9) 13.6
Total Supermarkets Non-RSA 6.4 14.2
The information contained in this announcement has not been reviewed or
reported on by the Group's external auditors.
Group year-end results release, webcast presentation invitation and
registration link
Shoprite Holdings is currently in its closed period. The Group will
release its year-end results for the period ended 29 June 2025 on the
JSE Stock Exchange News Service (SENS) by 08:00am (SAST, GMT +2) on
Tuesday, 2 September 2025. The Group's 2025 year-end results presentation
will follow, commencing at 09:30am (SAST, GMT +2) on Tuesday,
2 September 2025.
Shoprite Holdings CEO Pieter Engelbrecht invites all who would like to
attend the webcast presentation to do so by registering via
https://www.corpcam.com/shoprite02092025 or via the Group's website
www.shopriteholdings.co.za.
5 August 2025
Cape Town
Sponsor: Nedbank Corporate and Investment Banking, a division of Nedbank
Limited
Enquiries
Shoprite Holdings Limited Tel: 021 980 4000
Pieter Engelbrecht, Chief Executive Officer
Anton de Bruyn, Chief Financial Officer
Natasha Moolman, Group Head Investor Relations
Appendix A
Condensed consolidated statement of comprehensive income
Reported Restated1 Restated2
audited audited audited
52 weeks 52 weeks 52 weeks
2024 2024 2024
Rm Rm Rm
Revenue 246 082 238 333 236 328
Sale of merchandise 240 718 234 041 232 088
Cost of sales (182 968) (177 962) (176 549)
Gross profit 57 750 56 079 55 539
Alternative revenue 4 307 3 958 3 927
Interest revenue 759 334 313
Share of profit of equity
accounted investments 268 268 268
Insurance revenue 298 - -
Insurance service expenses (178) - -
Depreciation and amortisation (7 264) (6 935) (6 845)
Employee benefits (19 242) (18 394) (18 289)
Credit impairment losses (381) (189) (179)
Other operating expenses (23 053) (22 170) (21 916)
Net monetary gain 135 135 -
Trading profit 13 399 13 086 12 818
Exchange rate (losses)/gains (14) (8) 27
Profit on lease modifications
and terminations 101 96 96
Items of a capital nature (330) (334) (279)
Operating profit 13 156 12 840 12 662
Interest received from bank
account balances 529 523 517
Finance costs (4 306) (4 170) (4 153)
Profit before income tax 9 379 9 193 9 026
Income tax expense (2 836) (2 853) (2 805)
Profit from continuing operations 6 543 6 340 6 221
Loss from discontinued operations (322) (119) -
Profit for the year 6 221 6 221 6 221
Earnings per share for profit from
continuing operations attributable
to owners of the parent:
Basic earnings per share from
continuing operations (cents) 1 207.7 1 170.4 1 149.5
Diluted earnings per share from
continuing operations (cents) 1 202.6 1 165.5 1 144.7
Headline earnings per share from
continuing operations (cents) 1 250.5 1 213.7 1 185.3
Diluted headline earnings per
share from continuing operations (cents) 1 245.2 1 208.6 1 180.2
Earnings per share for profit
attributable to owners of
the parent:
Basic earnings per share (cents) 1 148.6 1 148.6 1 148.6
Diluted earnings per share (cents) 1 143.7 1 143.7 1 143.7
Headline earnings per share (cents) 1 191.4 1 191.4 1 191.4
Diluted headline earnings per share
(cents) 1 186.3 1 186.3 1 186.3
1 Restated as reported during interim 2025 for the classification of
the Group's furniture business (excluding Angola and Mozambique)
as discontinued operations in accordance with IFRS 5.
2 Restated as part of the 2025 full-year financial results for the
classification of the Group's furniture business, Malawi and Ghana
operations as discontinued operations in accordance with IFRS 5.
Date: 05-08-2025 08:30:00
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