Wrap Text
Operational update for the 52 weeks ended 30 June 2024
Shoprite Holdings Ltd
(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")
Operational update for the 52 weeks ended 30 June 2024
For the 52 weeks ended 30 June 2024 ("the period", "the year" or "the
12 months") the Shoprite Group increased total sale of merchandise by
12.0% to approximately R240.7 billion from continuing operations, including
the Ghana hyperinflation impact. Excluding hyperinflation, sale of
merchandise increased to R240.8 billion (12.0%). The Group added a net
292 stores during the period, including a net of 73 OK Franchise stores,
to total 3 639 stores from continuing operations.
Sales growth per segment, excluding hyperinflation, is outlined below:
2024 Sales growth over the
corresponding period last year
52 weeks
2024
compared to H1 ended H2 ended
52 weeks 52 weeks 31 Dec 30 Jun
2023 2023 2023 2024
Rbn % % %
Approximate sales from
continuing operations
Total Group 215.0 12.0 13.9 10.2
By segment:
Supermarkets RSA 173.6 12.3 14.6 10.1
Supermarkets Non-RSA 19.6 6.1 6.2 6.0
Furniture 7.1 2.3 1.7 3.2
Other operating segments 14.6 21.1 23.1 19.0
The following information provides context to the overall sales growth
for the year:
Supermarkets RSA
- The Group's core business, Supermarkets RSA, achieved sales growth
of 12.3%, contributing 81.0% to Group sales. This growth is reported
against the prior year period in which sales increased by 17.8%.
- Unlike our first half period sales growth which included the stores
acquired from Massmart Holdings Ltd ("Massmart") and reported against
a base in which they were not included, our second half sales growth
of 10.1% was achieved with the acquired stores (51 Shoprite, one
Usave and 40 Shoprite LiquorShop stores) included in our prior year
base.
- Like-for-like sales growth for the period measured 6.3% noting that
the stores acquired from Massmart were included in like-for-like
sales growth only for the second half period.
- Internal selling price inflation averaged 5.8% for the period (first
half period 7.7%; second half period 4.2%), ending the year at 3.0%
for June 2024.
- Checkers and Checkers Hyper reported sales growth of 12.3% with online
sales from our Checkers Sixty60 on-demand platform increasing by 58.1%.
- Shoprite and Usave reported sales growth of 10.7%.
- LiquorShop sales increased by 20.0%.
- Supermarkets RSA opened a net 201 stores (2023: 301 stores including
the stores acquired from Massmart) during the year to total 2 322
stores. Of these net new openings, 20 were Shoprite, 22 Usave,
25 Checkers and 71 LiquorShop stores. The remaining 63 were new format,
adjacent category specialist stores (Petshop Science added 33 new
stores to total 86 stores; Checkers Outdoor added 14 new stores to
total 22 stores; UNIQ clothing by Checkers added 13 new stores to
total 22 stores and Little Me opened three new stores to total
12 stores).
Supermarkets Non-RSA
- In our reporting currency, the rand, Supermarkets Non-RSA's sales
increased by 6.1% excluding hyperinflation and contributed 8.6% to
Group sales. Supermarkets Non-RSA's store base increased by a net
15 stores to total 266 stores operating in nine countries.
Furniture
- The Group's Furniture segment, contributing 3.0% to Group sales,
reported a 2.3% increase in sales for the year (like-for-like sales
increased by 2.0%).
- The segment's store base decreased by a net four stores to end the
year with 430 stores.
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 21.1% for the period, representing
7.4% of Group sales.
- Sales to the Group's OK Franchise business increased by 23.8%. After
opening a net 73 stores (2023: 22 stores) the OK Franchise division
ended the year with 608 stores.
- The Group opened seven Medirite Plus standalone drug stores during the
period to end the year with 13 stores in this new format, not
including the 126 Medirite in-store pharmacies located within our
core South African supermarkets business.
Additional comment
We highlight the following for consideration in terms of the Group's results
for the year:
- The cost of diesel to power generators during load-shedding across our
Supermarkets RSA store base for the year amounted to R754 million
(first half period R500 million, second half period R254 million).
This decrease in diesel costs should be considered in light of a
commensurate increase in electricity usage. As a result, we anticipate
the percentage increase in the Group's water and electricity expense
for the year should be mid to low single digits.
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. In addition, in respect of Ghana, the like-for-like sales
have been prepared excluding the impact of hyperinflation.
2. For the period ended 30 June 2024, the economy of Ghana was assessed
to be hyperinflationary. As such, hyperinflation accounting was
applied with effect from 3 July 2023. To facilitate the comparison of
the growth in sale of merchandise for the current period, the table
below outlines the pro forma financial information, excluding the
impact of hyperinflation.
Sale of merchandise Pro forma
Reported (excluding hyperinflation)
52 weeks 52 weeks
Change 2024 Change 2024
% Rbn % Rbn
Consolidated continuing
operations 12.0 240.7 12.0 240.8
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 invitation and registration
link
Shoprite Holdings is currently in its closed period. The Group will release
its year-end results for the period ended 30 June 2024 on the JSE Stock
Exchange News Service (SENS) by 08:00am (SAST, GMT +2) on Tuesday,
3 September 2024.
The Group's 2024 year-end results presentation will follow, commencing at
09:30am (SAST, GMT +2) on Tuesday, 3 September 2024.
Shoprite Holdings CEO Pieter Engelbrecht invites all who would like to
attend the webcast presentation to do so by registering via the Group's
website www.shopriteholdings.co.za or alternatively via
https://www.corpcam.com/shoprite03092024.
30 July 2024
Cape Town
Sponsor: Nedbank Corporate and Investment Banking, a division of
Nedbank Limited
Enquiries
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: 30-07-2024 08:00:00
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