Wrap Text
Group results for the 53 weeks to 4 July 2021
SHOPRITE HOLDINGS LIMITED
(Reg. No. 1936/007721/06)
(ISIN: ZAE000012084)
(JSE Share code: SHP)
(NSX Share code: SRH)
(LuSE Share code: SHOPRITE)
("the Group")
Group results for the 53 weeks to 4 July 2021
Pieter Engelbrecht, Chief Executive Officer
2021 was a challenging year but as a result of the Group's commitment and
execution, we increased sale of merchandise by 8.1%. In rand terms, this
growth equates to an additional R12.6 billion in sales on last year's
restated base to total a record R168.0 billion in sales for the year. In a
53-week year, our Supermarkets RSA segment reported strong sales growth of
9.3% from a high base despite our LiquorShop business being closed for 144
days. This result was a combined effort from our Shoprite and Usave
businesses which increased sales by 8.8% and our Checkers and Checkers Hyper
businesses, which increased sales by 10.9%. This growth is a testament to
our loyal customers and the relentless commitment of our team who ensured we
delivered unsurpassed value, either in-store or digitally, throughout the
year.
It was a significant year for our Supermarkets Non-RSA segment given that
we sold our Nigerian supermarket business, closed our operations in Kenya
(three stores) and classified our operations in Uganda (five stores) and
Madagascar (10 stores) as discontinued. The region remains challenging, but
our capital allocation review coupled with various in-country initiatives
have resulted in improved profitability.
The Group's Furniture segment increased sales by 24.6%. Our Other operating
segments' sales growth of 10.0% is commendable, especially considering that
both Checkers Food Services and Computicket continue to be significantly
impacted by COVID-19 and lockdown regulations. The OK Franchise business
goes from strength to strength, as evidenced by 8.2% sales growth this year.
The Group has recently unveiled ShopriteX, our digital tech hub which blends
the best of data science, technology and digital talent to save customers
time and money through innovation. After a year of incubation, ShopriteX
already boasts two industry leading innovations, namely the Xtra Savings
Rewards Programme, South Africa's fastest growing rewards programme and
Checkers Sixty60, Checkers' pioneering 60-minute grocery delivery service.
Consumer response on both counts has been unrivalled, with the Xtra Savings
Rewards Programme signing up over 20 million members and Checkers Sixty60
becoming the number one grocery app in the country with over 1.5 million app
downloads.
Despite being South Africa's largest private sector employer, we still
aspire to create employment as it is critical to improve the lives of our
fellow citizens. On that front, we added 3 897 new jobs this year. My
sincere thanks go to our Group's customers, suppliers, employees and
stakeholders for their continued support and commitment throughout 2021.
Restated*
Change 53 weeks 52 weeks
Key information - continuing operations % 2021 2020
Sale of merchandise (Rm) 8.1 168 030 155 409
Trading profit (Rm) 24.9 10 332 8 272
Operating profit (Rm) 19.0 9 664 8 124
Profit before income tax (Rm) 23.1 6 957 5 651
Income tax expense (Rm) 26.3 2 241 1 774
Profit for the year (Rm) 21.6 4 716 3 877
Attributable to owners of the parent (Rm) 4 698 3 857
Attributable to non-controlling interest (Rm) 18 20
Basic headline earnings per share (cents) 20.3 956.3 794.7
Basic earnings per share (cents) 22.1 851.6 697.5
Dividend per share (cents) 42.0 544.0 383.0
Profit for the year including discontinued
operations (Rm) 43.9 4 859 3 376
Attributable to owners of the parent (Rm) 4 841 3 356
Attributable to non-controlling interest (Rm) 18 20
Basic headline earnings per share including
discontinued operations (cents) 29.1 977.1 756.9
Basic earnings per share including
discontinued operations (cents) 44.6 877.5 606.9
* Restated for newly classified discontinued operations in accordance
with IFRS 5.
Declaration of ordinary dividend
The Board has declared a final dividend of 353 cents (2020: 227 cents)
per ordinary share, payable to shareholders on Monday, 4 October 2021. The
dividend has been declared out of income reserves. This brings the total
dividend for the year to 544 cents (2020: 383 cents) per ordinary share.
The last day to trade cum dividend will be Tuesday, 28 September 2021.
As from Wednesday, 29 September 2021, all trading of Shoprite Holdings Ltd
shares will take place ex dividend. The record date is Friday,
1 October 2021. Share certificates may not be dematerialised or
rematerialised between Wednesday, 29 September 2021, and Friday,
1 October 2021, both days inclusive.
In terms of the Dividends Tax, the following additional information is
disclosed:
1. The local dividend tax rate is 20%.
2. The net local dividend amount is 282.4 cents per share for
shareholders liable to pay Dividends Tax and 353 cents per share for
shareholders exempt from paying Dividends Tax.
3. The issued ordinary share capital of Shoprite Holdings Ltd as at the
date of this declaration is 591 338 502 ordinary shares.
4. Shoprite Holdings Ltd's tax reference number is 9775/112/71/8.
About this announcement
This short-form announcement is the responsibility of the Directors of
Shoprite Holdings Ltd. It is only a summary of the information in the
condensed consolidated financial statements and does not contain full or
complete details. The condensed consolidated financial statements for the
year ended 4 July 2021 have been reviewed by Shoprite Holdings Ltd's
external auditors who have reached an unmodified review conclusion. Any
investment decisions by investors and/or shareholders should be based on
consideration of the condensed consolidated financial statements published
on the Stock Exchange News Service (SENS) and www.shopriteholdings.co.za as
a whole.
The condensed consolidated financial statements have been released on the
JSE (https://senspdf.jse.co.za/documents/2021/jse/isse/SHP/ye2021.pdf)
and are also available for viewing at
https://www.shopriteholdings.co.za/content/dam/SENS/YE2021-Sep2021.pdf.
Copies of the condensed consolidated financial statements may be requested
from the Company Secretary (cosec@shoprite.co.za, tel +27 (0)21 980 4284)
at PO Box 215, Brackenfell, 7561, South Africa.
By order of the Board
WE Lucas-Bull PC Engelbrecht
Chairman Chief Executive Officer
Cape Town
7 September 2021
Sponsor: Nedbank Corporate and Investment Banking, a division of Nedbank
Limited
Date: 07-09-2021 08:00:00
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