Wrap Text
Operational update for the 52 weeks to 3 July 2022
SHOPRITE HOLDINGS LIMITED
(Reg. No. 1936/007721/06)
(ISIN: ZAE000012084)
(JSE share code: SHP)
(NSX share code: SRH)
(LuSE share code: SHOPRITE)
("Shoprite Group" or "the Group")
Operational update for the 52 weeks to 3 July 2022
For the 52 weeks to 3 July 2022 ("the period", "the year" or "the
12 months") the Shoprite Group increased total sale of merchandise by 9.6%
to approximately R184.1 billion. Taking into account the additional week of
sales included as part of the prior year's 53 week reporting period, the
Group increased 2022 sales by 11.9% on a 52 week basis.
During the period, excluding the impact of store closures as a result of the
July 2021 civil unrest, the Group added a net 127 stores to its corporate
store base to total 2 476 stores from continuing operations. In line with
our first half reporting, no adjustments have been made to the Group's
reported sales metrics to reflect the impact of the July 2021 civil unrest
which affected 231 stores across the Group.
In the interests of full disclosure and in accordance with IFRS 8: Operating
Segments, the Group reports sales per segment and the table below outlines
this detail:
2022 Sales growth
Pro forma
52 weeks 52 weeks
As reported 2022 2022
audited compared to compared to
Approximate sales from 53 weeks 53 weeks 52 weeks
continuing operations 2021 2021 2021
Rbn % %
Total Group 168.0 9.6 11.9
Supermarkets RSA 133.9 10.1 12.6
Supermarkets Non-RSA 15.4 10.4 12.9
Furniture 6.8 (1.4) 0.7
Other operating segments 11.9 8.5 9.3
The following information provides context to the overall sales growth for
the year:
Supermarkets RSA
- The Group's core business, Supermarkets RSA, contributing 80.0% to
Group sales achieved sales growth of 10.1% (like-for-like 8.5%). On a
52 week basis, sales increased by 12.6%.
- Internal selling price inflation measured 3.9% for the year as a result
of an acceleration in the fourth quarter which resulted in second half
inflation measuring close to 5.0%.
- The Supermarkets RSA LiquorShop business's sales increased by 44.5%.
Due to Covid-19 nationwide lockdown regulations, the Supermarkets RSA
LiquorShop business was required to close for 48 days over the 12 months
under review compared to 144 days in the prior year.
- The segment's sales growth was achieved notwithstanding the impact of
the July 2021 civil unrest which severely impacted 189 stores
(135 supermarkets and 54 LiquorShops) and resulted in additional stores
being closed for precautionary reasons. At the end of the period
31 stores remained closed, nine of which have been permanently closed.
The remaining 22 stores (including two large format Checkers Hypers)
are scheduled to reopen during our 2023 financial year.
- Outside the impact of these aforementioned closures and reopenings,
Supermarkets RSA opened a net of 117 stores (2021: net 87 stores)
during the year to total 1 820 stores.
Supermarkets Non-RSA
- The Group's Supermarkets Non-RSA segment's sales increased by 10.4%.
On a 52 week basis, sales increased by 12.9%.
- In line with the Group's ongoing capital allocation management
programme, Supermarkets Non-RSA ended the period with a net of 12 less
stores than the prior year. This is primarily due to the sale of our
operations in Madagascar (10 stores) and Uganda (five stores).
- After taking into account the classification of these aforementioned
regions as discontinued operations, the segment is represented by
10 countries contributing 9.3% to Group sales.
Furniture
- The Group's Furniture segment, contributing 3.7% to Group sales,
reported a 1.4% decline in sales for the year (like-for-like sales
increased by 0.3%). On a 52 week basis, sales increased by 0.7%.
- Sales growth improved notably in the second half (first half sales
declined by 6.5%; second half sales increased by 5.2%) given that the
period began with the civil unrest which directly impacted 35 stores
and resulted in the closure of numerous adjacent stores for precautionary
reasons. At the end of the period, five stores remained closed.
Notwithstanding these closures, the segment's store base increased by a
net of five stores to end the year with 426 stores.
Other operating segments
- The Group's Other operating segments include OK Franchise, Transpharm,
MediRite Pharmacies, Computicket and Checkers Food Services.
- Other operating segment's sales increased by 8.5% for the period,
contributing 7.0% to Group sales. On a 52 week basis, sales increased
by 9.3%.
- Sales to the Group's OK Franchise business increased by 7.5%. Of the
seven OK Franchise stores impacted by the civil unrest, six have been
reopened and one permanently closed. The OK Franchise division ended
the year with 513 stores.
Statement on pro forma financial information
Like-for-like sales growth and sales growth reported against the 2021
52 week period constitute 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 in its closed period and will release its year-end
results for the period ended 3 July 2022 on the JSE Stock Exchange News
Service (SENS) by 8:00 am on Tuesday, 6 September 2022.
The Group's 2022 year-end results webcast presentation will follow,
commencing at 9:30 am on Tuesday, 6 September 2022.
Shoprite Holdings's 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/shoprite06092022.
26 July 2022
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: 26-07-2022 08:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
