Operational update for the six months ended 29 December 2019
SHOPRITE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Reg. No. 1936/007721/06
JSE 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 2019
For the six months to 29 December 2019 the Shoprite Group increased total sale of merchandise by
7.0% to approximately R81.2 billion. The Group’s supermarket business grew customer visits by 2.1%
and product volumes by 4.4%.
On a segmental basis, approximate sales for the six months to December 2019 were as follows:
H1 Q1 ended Q2 ended H1 Total
Sales Sep 2019 Dec 2019 Dec 2019
Supermarkets RSA R61.7bn 10.3% 9.4% 9.8%
Supermarkets Non-RSA R10.8bn -4.9% -1.5% -3.1%
Furniture R3.3bn -0.2% -4.5% -2.7%
Other operating segments R5.4bn 6.4% 2.6% 4.4%
Total operating segments R81.2bn 7.3% 6.7% 7.0%
The following provides context to the overall sales growth for the six months:
- The Group’s core business, Supermarkets RSA, achieved sales growth of 9.8% for the period.
- Internal selling price inflation moderated from 3.0% during the first quarter to 2.4%
in the second quarter, resulting in internal selling price inflation of 2.7% for the six
- All three supermarket brands, Shoprite, Checkers and Usave, traded well in a tough
- Liquor sales remained strong, with sales growing 20.5%.
- Supermarkets Non-RSA recorded a decline in sales of 3.1% in rand terms.
- We have continued to experience ongoing currency devaluations and volatility in key
markets in which we trade. The Angolan kwanza weakened by 40.6% against the US
dollar since June 2019. During the reporting period, the Angolan kwanza, Zambian
kwacha and Nigerian naira depreciated 40.4%, 20.8% and 18.2% respectively against
the US dollar when compared to the previous year.
- Constant currency growth measured 4.8%.
- The Furniture Division’s sales declined 2.7% for the six months to 29 December 2019,
impacted by a reduction in the store base of 13 net stores over the period; load shedding in
South Africa and currency devaluations in certain Non-RSA countries.
- Other operating segments which include OK Franchise, Computicket, MediRite Pharmacies,
Transpharm and Checkers Food Services grew sales by 4.4%. The period included a 6-week
strike in Transpharm, the Group’s pharmaceutical wholesale business. OK Franchise’s growth
for the six months to 29 December 2019 measured 7.5%.
For the six months to 29 December 2019 the Group added a net 66 stores to its supermarket business
to end the period with 1 911 stores. Franchise added a net 10 stores to end December with 470 stores.
Shareholders are advised that this update does not constitute an earnings forecast. The figures and
information contained herein have not been reviewed or reported on by the Group’s auditors.
The Group's interim results for the six months ended 29 December 2019 are scheduled for release on
SENS on or about 25 February 2020.
PRO FORMA FINANCIAL INFORMATION
Impact of Angola hyperinflation adjustment in comparative period
For the comparative period ended 30 December 2018, the Angolan economy was assessed to be
hyperinflationary. As such, it required the application of hyperinflation accounting.
For the six months ended 29 December 2019, the Angolan economy was assessed not to be
hyperinflationary. As such, the current period’s results do not require the application of hyperinflation
In order to facilitate the comparison of the current period’s results, the table below outlines the pro
forma financial information for the comparative prior period, excluding the impact of hyperinflation.
The financial impact of hyperinflation on the prior period’s turnover was as follows:
Pro Forma Reported Pro Forma
Change on Change on 26 weeks to 30 Hyperinflation 26 weeks to 30
prior period prior period December 2018 adjustment December 2018
% % Rm Rm Rm
Total turnover 6.96 7.01 75 837 30 75 867
The above pro forma financial information is the responsibility of the directors of Shoprite Holdings
and has been prepared for illustrative purposes only.
Pieter Engelbrecht Anton de Bruyn Natasha Moolman
Chief executive officer Chief financial officer Group investor relations
Tel 021 980 4000
Date issued: 22 January 2020
Sponsor: Nedbank Corporate and Investment Banking
Date: 22-01-2020 10:39:00
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.
Email this JSE Sens Item to a Friend.