Shoprite Holdings said full-year profit climbed 11 per cent as South Africa’s largest food retailer raised its market share for a ninth straight year.
Headline earnings, which exclude one-time items, rose to 7.73 rand a share in the 12 months through June 30 from 6.98 rand a year earlier, the company said in a statement Tuesday. The average of 16 analyst estimates was for 7.75 rand. The board declared a final dividend of 2.43 rand a share, raising the year’s total payout 10 percent to 3.86 rand.
South African shopping chains have struggled in the past year as unemployment of about 25 per cent, prolonged strikes and high levels of personal debt contributed to a shrinking household incomes.
“In this environment, consumer confidence dropped to its lowest level in more than 14 years as consumers found themselves under increasing pressure, which was increasingly evident in the second half of the year,” the company said. “Management does therefore not foresee improved trading conditions for the immediate future.”
News by Bloomberg, edited by ESM
