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SHOPRITE HOLDINGS LIMITED - Unaudited group results for the 26 weeks to 29 December 2019

Release Date: 25/02/2020 07:05
Code(s): SHP     PDF:  
 
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Unaudited group results for the 26 weeks to 29 December 2019

SHOPRITE HOLDINGS LIMITED

(Reg. No. 1936/007721/06)

(ISIN: ZAE000012084)

(JSE Share code: SHP)

(NSX Share code: SRH)

(LuSE Share code: SHOPRITE)

("the Group")


SHOPRITE HOLDINGS: UNAUDITED GROUP RESULTS FOR THE 26 WEEKS TO 29 DECEMBER 2019


Pieter Engelbrecht, chief executive officer

We are very proud to report the Group's 7.0% increase in merchandise sales 

for the six months to 29 December 2019. The R81.2 billion in sales was 

achieved on the back of 4.4% growth in volume of products sold and 2.1% 

growth in the number of customers. EBITDA, a more comparable measure after 

the adoption of IFRS 16: Leases, increased by 5.3% to R6.8 billion. This was 

a satisfactory performance given the 1.1% market share gains to 31.6% in 

Supermarkets RSA which achieved sales growth of 9.8%.



Our Group strategy to capture a larger share of South Africa's premium food 

retail segment continues to be one of our drivers of growth as reflected 

particularly in the Checkers brand, together with Hypers, growing sales by 

11.2%. It's been an exciting six months for the Checkers brand with 

significant milestones reached in support of our long-term growth strategy. 

The Xtra Savings Rewards Programme was launched in October and has been very 

well received with 3.8 million customers having already signed up. In 

another first for South African Supermarkets, our pioneering one hour 

grocery delivery service, Sixty60, was launched in November in 8 stores. 

Although, still in the early stages, we believe this mobile e-commerce 

solution offering unrivalled convenience for shoppers holds much promise.



Our Supermarkets Non-RSA operating segment, comprising operations in 14 

countries across the African continent, recorded positive sales growth of 

4.8% in constant currency terms. Sales declined by 3.1% in rand terms.



The Group's trading margin of 5.0% remained strong, underpinned by an 8.7% 

increase in gross margin and effective cost control. 



Outside of our retail operations, our focus is increasingly on our 

environment, governance, social responsibility and our continued goal to 

improve the lives of the people in key Shoprite communities. We remain

pleased to report that despite the current difficult economic climate,

Shoprite continued to create new jobs and participate in the YES

(Youth Employment Service) programme.





Key information

                                          %     29 December    30 December

                                     change            2019           2018

Sale of merchandise (Rm)                7.0          81 150         75 837 

Trading profit (Rm)                    (3.9)          4 033          4 196 

Operating profit (Rm)                   5.9           4 287          4 048 

Profit before income tax (Rm)           3.4           3 007          2 907 

Income tax expense (Rm)                16.4             939            807 

Profit for the period (Rm)             (1.5)          2 068          2 100 

   Attributable to owners of the 

   parent (Rm)                                        2 059          2 092 

   Attributable to non-controlling 

   interest (Rm)                                          9              8 

Basic headline earnings 

per share (cents)                      (2.6)          372.8          382.8

Basic earnings per share (cents)       (1.4)          372.1          377.3

Dividend per share (cents)                -           156.0          156.0



Declaration of ordinary dividend

The board has declared an interim dividend of 156 cents (2018: 156 cents)

per ordinary share, payable to shareholders on Monday, 16 March 2020. The

dividend has been declared out of income reserves. The last day to trade

cum dividend will be Tuesday, 10 March 2020. As from Wednesday, 

11 March 2020, all trading of Shoprite Holdings Ltd shares will take place 

ex dividend. The record date is Friday, 13 March 2020. Share certificates

may not be dematerialised or rematerialised between Wednesday,

11 March 2020, and Friday, 13 March 2020, 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 124.8 cents per share for shareholders

    liable to pay Dividends Tax and 156 cents per share for shareholders

    exempt from paying 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/2020/jse/isse/SHP/ie2019.pdf) 

and are also available for viewing at 

https://www.shopriteholdings.co.za/content/dam/SENS/INT2019-Feb2020.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



CH Wiese        PC Engelbrecht

Chairman        Chief Executive Officer



Cape Town

25 February 2020



www.shopriteholdings.co.za



Sponsor: Nedbank CIB


Date: 25-02-2020 07:05:00
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