Shoprite banks R4.7bn profit

2012-08-21 10:18

Shoprite Holdings posted a 17% increase in trading profit to R4.665 billion in the year to June 2012, with turnover increasing 14.4% to R82.731 billion.

Headline earnings per share rose 19.6% to 607.04 cents.

The trading giant declared a final dividend per share of 194c (2011: 165c), an increase of 17.6%.

Chief executive Whitey Basson said the results is testament that the group is able to perform well despite adverse market conditions.

The turnover increase of 14.3% in its supermarkets in an environment in which internal food inflation averaged 4.9% represents real growth in excess of 9%.

“That we managed to keep internal food inflation almost 4 percentage points below the official rate of 8.8%, reflects very positively on the group’s commitment to keep food prices as low as possible,” he said.

Basson said this will stand consumers in good stead in the coming year if the speculated price increases become a reality to the extent of economists’ current forecasts.

Turnover accelerated in the second half of the year – from 13.2% to 15.7% – while food inflation came down, providing some reprieve for consumers.

This slight buoyancy in the market has persisted after year-end but it is doubtful whether it will last as food prices are bound to rise in line with international markets.

The past 12 months was also a gratifying period that saw the Group appointing its 100 000th employee, having created more than 7 000 new jobs as a result of its successful store opening programme.

Shares in Shoprite are up about 15% so far this year, reflecting expectations of healthy returns from its expansion into the rest of the fast-growing continent.

Shoprite, which earns 10% of its sales from supermarkets outside South Africa, raised R8 billion in June for expansion.

– Fin24

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