Interim Results For The Year 31 December 2016

Interim Results For The Year 31 December 2016

| Shoprite Holdings Limited | Interim Results For The Year 31 December 2016

 

Key information
– Trading profit up 19.2% to R3.907 billion.
– Turnover up 14.0% – from R62.519 billion to R71.297 billion.
– Diluted headline earnings per share up 15.5% to 460.0 cents (2015: 398.2 cents).
– Dividend per share declared 180 cents, an increase of 15.4% over the 156 cents of the corresponding period.
Pieter Engelbrecht, chief executive:
Shoprite produced an excellent set of results for the six months to December 2016, which included a successful
festive trading period. Total turnover grew 14% from R62.519 billion to R71.297 billion while trading profit was
19.2% higher at R3.907 billion. Group results were boosted by a very strong performance by our Non-RSA
operations which grew turnover by 32.3% to R12.877 billion. At constant currencies this represents growth of
51.7%.
The rise in trading profit above turnover growth was the result of increased marketing activity, strict cost control
across the spectrum, improved planning involving all the various disciplines in the business, and the Group’s
ability
to achieve ongoing supply line efficiencies. These factors combined enabled the Group to increase the
trading margin from 5.2% to 5.5% while continuing to provide the best value at highly competitive prices.
The widespread drought and its impact on agricultural production, coupled with the high replacement cost of
basic food imports, caused internal inflation to increase from 2.7% a year ago to 7.4%, the highest level in several
years. To assist price sensitive consumers and support low prices with value we continued to subsidise those
basic foods most affected by price escalations.
To sustain growth both within South Africa and beyond its borders, the Group opened a net 147 new stores
during
the past 12 months and at the end of the reporting period was trading from 2 653 outlets. This enabled
it to create, to our immense satisfaction, 7 144 additional jobs bringing its total staff complement to more than
143 000.

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