Shoprite Holdings has reported an increase in sales of 10% to R91.1 billion for its 2022 interim results with diluted headline earnings per share (DHEPS) having increased by 25.2% to 519.3 cents (restated H1 2021: 414.8 cents).
The retailer’s adjusted DHEPS increased by 32.5% to 536.3 cents (restated H1 2021: 404.8 cents).
“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 millions of customers throughout South Africa and Africa”, commented CEO, Pieter Engelbrecht.
“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 surpassed. Similarly, our supermarket businesses outside of South Africa have sustained profitability. All credit to our teams who operate in these regions which, in their own right, can be extremely challenging”.
The group’s core South African supermarket business, which represents 79.5% of its sales, increased its sales by 11.3%. Despite having 2 of its large format Checkers Hypers closed due to the July 2021 civil unrest, all of its supermarket brands grew sales ahead of the market.
Shoprite and Usave, which together make up 52.5% of the group’s Supermarkets RSA operating segment, increased sales by 7.3% with Checkers and Checkers Hyper, which make up 40% of the Supermarkets RSA sale of merchandise, increased sales by 11.4%. After being closed for most of 2021 due to lockdown regulations, the 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 6 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 6-month period alone”, he said.
“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 including, but not limited to, the agreement entered into with our partner RTT Group (Pty) Ltd to establish a new company for their on-demand business”.
Excluding the impact of the civil unrest closures and reopenings, the Supermarkets RSA operating segment opened a net of 62 stores during the 6 months, creating 1 949 jobs.
The group’s interim dividend per share declared for the reporting period increased by 22% to 233 cents (H1 2021: 191 cents).
