Oct 28, 2004
SHOPRITE HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration number 1936/007721/06
ISIN: ZAE 000012084
JSE share code: SHP
NSX share code: SRH
LuSE share code: SHOPRITE
TRADING UPDATE AT ANNUAL GENERAL MEETING
In the first three months of the 2005 financial year the Shoprite Group increased turnover by 9,3% on a like-for-like basis, continuing the upward sales curve of the latter part of the previous year. This growth was achieved despite very low food inflation that varied between 1,6% and 2,7%, with many staple products still selling at prices below those of a year ago. Operations elsewhere in Africa were still hampered by the effects of the strong rand.
Operating profit and operating margins for the Group were on budget.
All three of the Group’s FMCG chains – Shoprite, Checkers and Usave – showed sustained growth while its furniture division continued to grow turnover above 20% and in line with the rest of this buoyant sector.
The high level of consumer confidence was reflected in the growth in basket size above the inflation rate and the increase in the number of customer transactions. The Group grew market share marginally on a same store basis.
In the period to date, 3 supermarkets and 8 Usave stores were opened, and a further 21 stores will be opened by December 2004. Of these, 26 will be located within South Africa and six outside its borders. The Group plans to open a further 115 stores to December 2005.
Given the positive consumers confidence, the Group is looking forward to an exciting Christmas trading period. Turnover and operating profit for the six months to end December are expected to be better than for the corresponding period when sales were adversely impacted by a countrywide strike that affected primarily Shoprite stores.
28 October 2004
Sponsor: Nedbank Capital