South Africa’s Shoprite profit up 7.6% in first half

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South Africa’s Shoprite profit up 7.6% in first half

10:28 CAT | 05 Mar 2024

FILE - Products are displayed for sale inside a Shoprite store in Abuja, Nigeria August 3, 2020. [File photo: Reuters/Afolabi Sotunde]

Shoprite SHPJ.J, South Africa’s biggest supermarket group, reported a 7.6% rise in its half-year profit on Tuesday, supported by a record Black Friday and festive season as cash-strapped shoppers and upmarket consumers went after food deals.

The retailer, with more than 3,500 stores across Africa, said diluted headline earnings per share came in at 621.4 cents in the 26 weeks ended Dec. 31, from 577.5 cents a year earlier.

Group sales rose by 13.9% to 121.1 billion rand ($6.35 billion), extending its uninterrupted market share gains in its core South African supermarket business to 58 months, Shoprite said.

Supermarkets South Africa, which contributes about 80.5% to the group’s topline, witnessed a 14.6% jump in sales to 97.5 billion rand. The core business benefited from the acquisition of 94 stores from Walmart-owned Massmart. Like-for-like sales climbed 6.3%.

Sales in the rest of Shoprite’s stores in Africa rose 6.2% in South African rand terms and by 20% in constant currency.

The group’s 23.6% reported gross margin is slightly higher year-on-year due to supply chain efficiencies that helped increase volumes and respite in fuel prices over the six months, the company said.

($1 = 19.0638 rand)

Source: Reuters