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Unaudited group results for the 26 weeks to 29 December 2019
SHOPRITE HOLDINGS LIMITED
(Reg. No. 1936/007721/06)
(ISIN: ZAE000012084)
(JSE Share code: SHP)
(NSX Share code: SRH)
(LuSE Share code: SHOPRITE)
("the Group")
SHOPRITE HOLDINGS: UNAUDITED GROUP RESULTS FOR THE 26 WEEKS TO 29 DECEMBER 2019
Pieter Engelbrecht, chief executive officer
We are very proud to report the Group's 7.0% increase in merchandise sales
for the six months to 29 December 2019. The R81.2 billion in sales was
achieved on the back of 4.4% growth in volume of products sold and 2.1%
growth in the number of customers. EBITDA, a more comparable measure after
the adoption of IFRS 16: Leases, increased by 5.3% to R6.8 billion. This was
a satisfactory performance given the 1.1% market share gains to 31.6% in
Supermarkets RSA which achieved sales growth of 9.8%.
Our Group strategy to capture a larger share of South Africa's premium food
retail segment continues to be one of our drivers of growth as reflected
particularly in the Checkers brand, together with Hypers, growing sales by
11.2%. It's been an exciting six months for the Checkers brand with
significant milestones reached in support of our long-term growth strategy.
The Xtra Savings Rewards Programme was launched in October and has been very
well received with 3.8 million customers having already signed up. In
another first for South African Supermarkets, our pioneering one hour
grocery delivery service, Sixty60, was launched in November in 8 stores.
Although, still in the early stages, we believe this mobile e-commerce
solution offering unrivalled convenience for shoppers holds much promise.
Our Supermarkets Non-RSA operating segment, comprising operations in 14
countries across the African continent, recorded positive sales growth of
4.8% in constant currency terms. Sales declined by 3.1% in rand terms.
The Group's trading margin of 5.0% remained strong, underpinned by an 8.7%
increase in gross margin and effective cost control.
Outside of our retail operations, our focus is increasingly on our
environment, governance, social responsibility and our continued goal to
improve the lives of the people in key Shoprite communities. We remain
pleased to report that despite the current difficult economic climate,
Shoprite continued to create new jobs and participate in the YES
(Youth Employment Service) programme.
Key information
% 29 December 30 December
change 2019 2018
Sale of merchandise (Rm) 7.0 81 150 75 837
Trading profit (Rm) (3.9) 4 033 4 196
Operating profit (Rm) 5.9 4 287 4 048
Profit before income tax (Rm) 3.4 3 007 2 907
Income tax expense (Rm) 16.4 939 807
Profit for the period (Rm) (1.5) 2 068 2 100
Attributable to owners of the
parent (Rm) 2 059 2 092
Attributable to non-controlling
interest (Rm) 9 8
Basic headline earnings
per share (cents) (2.6) 372.8 382.8
Basic earnings per share (cents) (1.4) 372.1 377.3
Dividend per share (cents) - 156.0 156.0
Declaration of ordinary dividend
The board has declared an interim dividend of 156 cents (2018: 156 cents)
per ordinary share, payable to shareholders on Monday, 16 March 2020. The
dividend has been declared out of income reserves. The last day to trade
cum dividend will be Tuesday, 10 March 2020. As from Wednesday,
11 March 2020, all trading of Shoprite Holdings Ltd shares will take place
ex dividend. The record date is Friday, 13 March 2020. Share certificates
may not be dematerialised or rematerialised between Wednesday,
11 March 2020, and Friday, 13 March 2020, 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 124.8 cents per share for shareholders
liable to pay Dividends Tax and 156 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 interim financial statements and does not contain
full or complete details. Any investment decisions by investors and/or
shareholders should be based on consideration of the condensed consolidated
interim financial statements published on the Stock Exchange News Service
(SENS) and www.shopriteholdings.co.za as a whole.
The condensed consolidated interim financial statements have been
released on the JSE
(https://senspdf.jse.co.za/documents/2020/jse/isse/SHP/ie2019.pdf)
and are also available for viewing at
https://www.shopriteholdings.co.za/content/dam/SENS/INT2019-Feb2020.pdf.
Copies of the condensed consolidated interim 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
CH Wiese PC Engelbrecht
Chairman Chief Executive Officer
Cape Town
25 February 2020
www.shopriteholdings.co.za
Sponsor: Nedbank CIB
Date: 25-02-2020 07:05:00
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