South Africa's biggest supermarket group Shoprite's full-year headline earnings rose by 7.2% on double-digit sales growth, it said.
Headline earnings per share from continuing operations rose to R12.50 (€0.64) in the 52 weeks to June 30, up from R11.66 (€0.59) the previous year.
The owner of upmarket grocery chain Checkers and discount brands Shoprite and Usave declared a final dividend of 445 cents (€0.023) per share.
Revenue Increase
The group reported a solid financial performance with revenue increasing by 12.0% to R246.1 billion (€12.55 billion). Merchandise sales also rose by 12.0% to R240.7 billion (€12.28 billion).
Its core Supermarkets RSA division saw a 12.3% increase in merchandise sales, reaching R195.0 billion (€9.95 billion). Group trading profit grew by 12.4% to R13.4 billion (€683.4 million).
"It is my privilege to present results that aptly reflect a year in which we remained focused on our business and what we stand for – being best-priced, in-stock, solution-driven and customer-led," commented Pieter Engelbrecht, chief executive. "Our 12.0% increase in Group sales equates to our core South African supermarkets customers spending R21.4 billion (€1.09 billion) more with us this year.
"During a time when customers are incredibly pressured, this is the greatest reward for our efforts which come as a result of best-in-class execution, innovation and an unwavering dedication to serve. Growth of this nature, in a highly competitive market and from a high base can only be achieved as a result of across-the-board commitment."
The Year Ahead
Looking ahead to its 2025 financial year, Shoprite said that it has seen continued sales growth in its core Supermarkets RSA segment for July 2024, despite internal selling price inflation slowing to a 12-month low of 3.0%.
The company acknowledged that the challenges for South African consumers are ongoing, including rising costs for transport, food, and utilities, and added that it remains focused on minimising the impact of food price inflation on its customers.
Following the South African elections and with load-shedding challenges easing, the company sees a more positive outlook for consumer and business confidence. Shoprite’s medium-term strategy remains centered on the South African market, 'which as a result of our experience, scale, platform, store base and data, we believe provides us with considerable runway for future growth,' it said.
Additional reporting by ESM
