Wrap Text
Operational update for the six months ended 29 December 2024
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 six months ended 29 December 2024
This voluntary announcement pertains to the six-month period to
29 December 2024 ("the period", "the interim period" or "the six months").
For the interim period the Shoprite Group increased sale of merchandise
from continuing operations (excluding our furniture business held for sale)
by 9.6%, measuring approximately R128.6 billion. This growth is reported
against the Group's restated sales from continuing operations for the
interim period ended 31 December 2023 ("first half 2024" or "prior period"),
which amounted to R117.4 billion. Excluding the impact of Ghana
hyperinflation, sale of merchandise increased by 9.5%.
To aid with the understanding of amendments made to the Group's reporting
as a result of ongoing acquisitions, please refer to "Additional
information".
Sales growth per segment, excluding hyperinflation, is outlined below:
% Sales growth over the corresponding
period last year
Restated*
H1 H1 Q1 Q2
Approximate sales ended ended ended ended
from continuing 29 Dec '24 29 Dec '24 29 Sep '24 29 Dec '24
operations Rbn % % %
Total Group 128.6 9.5 10.5 8.7
By segment:
Supermarkets RSA 107.7 10.4 11.4 9.6
Supermarkets Non-RSA 11.0 4.1 3.2 4.8
Other operating segments* 9.9 6.2 9.5 3.4
* Restated for the classification of the Group's furniture business
(excluding Angola and Mozambique) 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 from
continuing operations for the interim period:
Supermarkets RSA
- The Group's core business, Supermarkets RSA, contributing 83.7% to
Group sales, achieved sales growth of 10.4% (H1 2024: 14.6%).
- Like-for-like sales (i.e. same-store sales) growth for the period
measured 6.1% (H1 2024: 6.3%).
- Internal selling price inflation averaged 1.9% for the period
(H1 2024: 7.7%).
- Checkers and Checkers Hyper, inclusive of Checkers Sixty60, reported
sales growth of 13.5% with online sales from our Checkers Sixty60
on-demand platform increasing by 47.1%.
- Shoprite and Usave reported sales growth of 6.7%.
- Shoprite and Checkers LiquorShop sales increased by 12.2%.
- Supermarkets RSA opened a net 248 stores over the past 12 months to
total 2 485 stores. Of these net new openings, 30 were Shoprite,
28 Usave, 34 Checkers and 80 LiquorShop stores. The remaining 76
were new format, adjacent category specialist stores (Petshop Science
added 53 new stores to total 128 stores; Checkers Outdoor added 11
new stores to total 26 stores; Uniq clothing by Checkers added 11 new
stores to total 30 stores and Little Me opened one new store to total
12 stores).
Supermarkets Non-RSA
- In the Group's reporting currency, the rand, Supermarkets Non-RSA's
sales increased by 4.1% excluding hyperinflation. This equates to an
8.6% contribution to Group sales.
- In constant currency, Supermarkets Non-RSA increased sales by 17.9%.
- The segment's store base increased by a net 10 stores over the past
12 months to total 269 stores operating in nine countries.
Other operating segments
- The Group's Other operating segments comprising OK Franchise, Transpharm,
Medirite Pharmacies, Red Star Wholesale Catering Services, Computicket
and our remaining Angola and Mozambique furniture business, reported
sales growth of 6.2%. The segment represents 7.7% of Group sales.
- The Group's sales to its OK Franchise operation increased by 8.8%.
The OK Franchise store base increased by a net of 18 stores over the
12 months to end the period with 623 stores.
- The Group opened six Medirite Plus standalone drug stores during the
period to end the period with 17 stores in this new format. Our in-store
Medirite pharmacies which totalled 122 for the period are excluded from
these numbers, as these pharmacies are located within supermarkets.
Additional information
We highlight the following for consideration in terms of the interim
period's result:
1. Purchase of the remaining 50% shareholding in Pingo Delivery (Pty) Ltd
("Pingo"): Following the acquisition of the remaining 50% share capital
of the Group's last-mile logistics provider, Pingo, the Group assumed
responsibility for both sale of merchandise and delivery to client. As a
result, this delivery income and the Xtra Savings Plus subscription
income, together with the related delivery expense, is included as part
of sale of merchandise and cost of sales respectively. It should however
be noted that the reclassification does not result in the restatement
of the prior period.
2. Sale of furniture business to Pepkor Holdings Ltd ("Pepkor"): The Group
signed an agreement on 2 September 2024 to dispose of the furniture
business including the OK Furniture and House and Home brands (excluding
Angola and Mozambique operations) to Pepkor. The agreement is pending
the fulfilment of the conditions precedent which includes Competition
Commission approval. The Group considers it highly probable that these
operations will be disposed of and consequently they have been
classified as discontinued operations in accordance with IFRS 5:
Non-Current Assets Held for Sale and Discontinued Operations. As such,
these operations' results are excluded from the Group's continuing
operations sales for the interim period as well as the first half 2024.
For the interim period and first half 2024, the Angola and Mozambique
operations have been reclassified to form part of Other operating
segments.
3. Lease liability related finance charges in terms of IFRS 16: Leases
(IFRS 16): Notwithstanding the 50-basis point decline in the RSA prime
lending rate during the period, store openings together with new
distribution centre leases have resulted in IFRS 16 related finance
charges increasing at a rate similar to the first half 2024.
4. Group share buy-back programme: During the period, the Group
repurchased shares to the value of R997 million at an average share
price of R289.29. As a result, the Group's weighted average shares
adjusted for dilution for the interim period will measure 544.5 million
(H1 2024: 546.1 million).
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.
2. The Group discloses unaudited constant currency information to indicate
the Supermarkets Non-RSA operating segment's performance in terms of
sales growth, excluding the effect of foreign currency fluctuations and
hyperinflation. To present this information, the interim period sales
for entities reporting in currencies other than South Africa rand are
converted from local currency actuals into South Africa rand at the
prior period's actual average exchange rates on a country-by-country
basis. In addition, in respect of Ghana, the constant currency
information has been prepared excluding the impact of hyperinflation
which is minimal in terms of its impact on the Supermarkets
Non-RSA sales.
The table below sets out the percentage change in sales, based on the
actual results for the period, in reported currency and constant currency
for major currencies. The total impact on Supermarkets Non-RSA is also
reflected after consolidating all currencies in this segment.
Reported Constant
% Change in sales on prior period 26 weeks currency currency
Angola kwanza 15.4 31.8
Ghana cedi (12.1) 22.3
Mozambique metical (2.5) 1.6
Zambia kwacha (7.9) 19.8
Total Supermarkets Non-RSA 4.1 17.9
The information contained in this announcement has not been reviewed
or reported on by the Group's external auditors.
Group interim results release, webcast presentation invitation and
registration link
Shoprite Holdings is currently in its closed period and will release its
2025 interim results on the JSE Stock Exchange News Service (SENS) by 08:00
(SAST, GMT +2) on Tuesday, 4 March 2025.
The Group's 2025 interim results webcast presentation will commence at 09:30
(SAST, GMT +2) on Tuesday, 4 March 2025.
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/Shoprite04032025.
28 January 2025
Cape Town
Sponsor: Nedbank Corporate and Investment Banking, a division of Nedbank
Limited
Enquiries:
Shoprite Holdings Limited Tel: 021 980 4000
Pieter Engelbrecht, Chief Executive Officer
Anton de Bruyn, Chief Financial Officer
Natasha Moolman, Group Investor Relations
Date: 28-01-2025 08:00:00
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