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Operational update for the 52 weeks to 2 July 2023
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")
Operational update for the 52 weeks to 2 July 2023
For the 52 weeks to 2 July 2023 ("the period", "the year" or "the 12
months") the Shoprite Group increased total sale of merchandise by 16.9% to
approximately R215.0 billion. The Group added a net 340 stores during the
period to total 3 324 stores from continuing operations.
Sales growth per segment is outlined below:
2023 Sales growth over the
corresponding period last year*
52 weeks
2023 H1 H2
Approximate sale from Restated compared to ended ended
continuing operations 52 weeks 52 weeks 1 Jan 2 July
2022 2022 2023 2023
Rbn % % %
Total Group 183.9 16.9 16.8 17.0
By segment:
Supermarkets RSA 147.4 17.8 17.5 18.2
Supermarkets Non-RSA 16.9 16.4 17.5 15.2
Furniture 6.7 5.1 8.6 1.0
Other operating segments 12.9 13.3 12.5 14.0
* Restated for the classification of the Group's DRC operations as
discontinued operations in accordance with IFRS 5: Non-current
Assets Held for Sale and Discontinued Operations.
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
17.8% (like-for-like 10.3%) contributing 80.8% to Group sales.
- Internal selling price inflation measured 10.1% (first half period
9.4%; second half period 10.8%).
- Checkers and Checkers Hyper reported sales growth of 18.0%.
- Shoprite and Usave reported sales growth of 15.6%.
- LiquorShop sales increased by 30.8%. First half sales growth of
35.6% was elevated due to Covid-19 lockdown closures in the prior
year period. Second half sales increased by 25.9%.
- Supermarkets RSA opened a net 301 stores (2022: a net 117 stores)
during the year to total 2 121 stores. Included in this are the
94 stores acquired from Massmart Holdings Ltd ("Massmart") of which
92 stores (51 Shoprite, 1 Usave and 40 Shoprite LiquorShop stores)
were integrated into our Shoprite, Usave and LiquorShop businesses
during our second half period. Two LiquorShop stores have not commenced
trading, awaiting confirmation of transfer of the liquor licenses.
Supermarkets Non-RSA
- In our reporting currency, the Rand, Supermarkets Non-RSA's sales
increased by 16.4% contributing 9.1% to Group sales. The segment's
store base increased by a net of two stores to total 228 stores
operating in nine countries.
Furniture
- The Group's Furniture segment, contributing 3.3% to Group sales,
reported a 5.1% increase in sales for the year (like-for-like sales
increased by 2.0%).
- The segment's store base increased by a net of eight stores to end the
year with 434 stores.
Other operating segments
- The Group's Other operating segments' sales increased by 13.3% for the
period, contributing 6.8% to Group sales.
- Sales to the Group's OK Franchise business increased by 13.7% and after
opening a net of 22 stores the OK Franchise division ended the year
with 535 stores.
- The Group opened four Medirite Plus standalone stores during the period
ending the year with six standalone stores and 134 Medirite pharmacies
located within our supermarkets business.
Additional comments
Whilst we remain encouraged by continued customer growth and continued
market share gains, we highlight the following for their impact during the
period:
1 In line with our approach for the first half of our 2023 year, the
Group remained resolute in terms of its commitment to lower-prices
and value for customers during our second half period. As such, the
Group's full year gross margin will be lower than that reported last
year (restated 2022: 24.5%), however the decline is expected to be less
than the gross margin decline reported in our 2023 interim results.
2 The cost of diesel to power generators during load-shedding across our
Supermarkets RSA store base amounted to R1.3 billion. It is important to
note that this cost became significant at higher stages of load-shedding
which occurred from September 2022.
3 Other less considerable but still noteworthy expenses include the impact
of a full year of distributions paid to Shoprite Group employees from
the Shoprite Employee Trust and the onboarding of the 4 480 employees
from January this year, as part of the above-mentioned stores acquired
from Massmart.
Statement on pro forma financial information
Like-for-like sales growth constitutes pro forma financial information. The
pro forma financial information contained in this announcement, which is the
responsibility of the Group's directors, has been prepared for illustrative
purposes only and may not fairly present the Group's financial position,
changes in equity, cash flows or results of operations.
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 closed period. The Group will release
its year-end results for the period ended 2 July 2023 on the JSE Stock
Exchange News Service (SENS) by 8:00 am on Tuesday, 5 September 2023.
The Group's 2023 year-end results presentation will follow, commencing
at 9:30am on Tuesday, 5 September 2023.
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/shoprite05092023.
25 July 2023
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: 25-07-2023 08:00:00
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