Jul 7, 2008
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 12 months to end June 2008 the Shoprite Group increased total turnover by 22,3% to about R47,7 billion. Growth on a like-for-like basis was 18,0%. During this period internal food inflation rose to 10,6% compared to less than 6% during the corresponding 12 months.
The South African supermarket division, the core operation of the Group, increased sales by 21,8%. The dominant brand, Shoprite, grew turnover 25,0%. This growth is still somewhat distorted by the impact on its sales by the industrial action in the first half of the 2007 financial year. Growing by 15,6%, Checkers’ turnover reflected the effect of higher interest and bond rates on the credit leveraged sector of the community.
The Group’s success in a tough consumer spend environment has been driven by management’s strategic decision to cut margins on basic foodstuffs in an attempt to alleviate the impact of worldwide food price increases on consumers. Combined with Shoprite’s positioning on lowest prices, this resulted in a customer transaction increase of 10,3%.
The 100 supermarkets the Group operates outside the borders of South Africa increased turnover by 38,3% from the previous year. The growth achieved on a like-for-like basis was 30,2%. As elsewhere, food inflation in these countries in Africa also put upward pressure on prices.
The Franchise Division, trading mainly under the OK banner, managed a turnover increase of 17,0%.
Unlike the food divisions, the Furniture Division continued to operate in a near deflationary environment. Despite lower consumer spending on durable goods and the introduction of the National Credit Act, the division still succeeded in growing turnover by 5,6%.
The above financial information has not been reviewed or reported on by the Shoprite Holdings' auditors. The financial results for the review period will be published on Tuesday, 02 September 2008.
Deputy managing director
Tel 021 980-4000
Date issued 07 July 2008
Sponsor Nedbank Capital