Jan 10, 2005
SHOPRITE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration no. 1936/007721/06
ISIN: ZAE 000012084
JSE share code: SHP
NSX share code: SRH
LuSE share code: SHOPRITE
For the six months to 2 January 2005, comprising 27 weeks, the Group increased turnover by 14,1% to approximately R15,2 billion, compared to the corresponding six months of 26 weeks in 2003. If the additional week of the current reporting period is disregarded, turnover growth was 10,3%.
All other comparatives contained in this trading statement have been calculated on the basis of a 26-week period.
The six months to 2 January 2005 represent a successful trading period for the Group, with all its retail divisions reporting good growth in turnover, despite internal food deflation of between 0,3% and 1,3% in the different brands. Management is satisfied with this achievement and in particular with the improvement in non-food sales.
The Checkers brand continued to reflect the value of its new positioning by its customer support, with turnover growth of 7,4% on a like-for-like basis. Three new stores were opened during the period under review.
Shoprite, harder hit than Checkers by internal food deflation, given its mass-market customer profile and product mix, grew turnover on a like-for-like basis by 8,7% and overall by 11,9%. Eight new stores were opened during the period under review.
The roll-out of Usave outlets continued at a pace to keep up with support for the brand, and a further 17 new stores were opened during the period under review, to bring the total to 74.
Good growth was again experienced in the Furniture Division in line with the rest of the industry, and turnover increased 15,9% on a like-for-like basis and 18,1% overall. This was achieved in a highly competitive market, buoyed by strong consumer demand and lower prices for imported goods given the strengthening of the rand.
The Group's non-RSA operations performed in line with expectations. Sales increased 20,1% at constant conversion rates. If currency fluctuations are taken into account, this turnover growth translated into 12,4% in rand terms.
On 15 December 2004 the Group opened a hyper store in a modern shopping centre in Mumbai, India. Turnover has increased consistently and Group management is excited about the enormous potential for growth in India.
The above financial information has not been reviewed or reported on by the Groups auditors. The interim results for the six months to 2 January 2005 are expected to be published on or about 1 March 2005.
JW Basson, CEO, or CG Goosen, deputy managing director (tel 021 980 4000).
Date issued 10 January 2005
Sponsor Nedbank Capital