20 Aug Results For The Year Ended 1 July 2018
Securities Exchange Notices | Shoprite Holdings Limited | Results For The Year Ended 1 July 2018
– Turnover increased by 3.1% to R145.3 billion.
– Diluted headline earnings per share of 968.7 cents, down by 3.8%.
– Trading profit decreased by 1.4% to R8.0 billion.
– EBITDA increased by 1.0% to R10.1 billion.
– Opened a net 124 corporate stores (2017: 109).
– Created 3 676 additional jobs.
Pieter Engelbrecht, chief executive officer:
In testing trading conditions, the Group managed to increase total turnover by 3.1% to R145.3 billion in the 12 months
to 1 July 2018. Positive volume growth of 2.7% combined with a 3.3% increase in customer numbers as well as local
market share gains continue to reflect a strong underlying performance.
Group turnover growth includes the effect of hyperinflation accounting in Angola for the first time in accordance with
International Financial Reporting Standards. Excluding this adjustment, the Group’s turnover increased by 3.6%. Group
internal inflation dropped off significantly to only 0.5% from 7.3% in the previous year which dampened top line growth.
Trading profit was 1.4% lower at R8.0 billion, representing a still healthy trading margin of 5.5%.
Our core South African supermarket operations increased turnover by 5.7% despite experiencing overall deflation in
selling prices for six out of twelve months during the year. Internal selling price inflation declined sharply from an average
of 5.9% in the corresponding period to just 0.3% during the year under review, with 13 241 products in deflation at the
end of June 2018. This is testimony to Shoprite’s commitment for almost 40 years to put customers first by keeping
prices low. The strong RSA performance amidst low inflation still resulted in a market share gain to 31.7% for the period,
propelled by Checkers’ progress in its more sharpened focus on higher income customers.
Turnover of Supermarkets Non-RSA operations declined 7.0% after exceptional growth in the prior year and reflects
slow economic recoveries and currency fluctuations in the major countries of operation.
We continue to invest in our people and products and secure growth opportunities in South Africa and beyond for
the long-term growth of the business and in order to serve our customers, communities, suppliers and shareholders.
Our ability to extract growth in trying circumstances validates the strength of our strategy which not only includes
geographical diversification, but also the extraction of value across all operations and brands.
The Group continues to advance its primary purpose: to be Africa’s most accessible and affordable food retailer. The
Group opened a net 124 new corporate stores during the past 12 months and at year-end was trading from 2 843
outlets, adding 3 676 additional jobs in the reporting period, to bring the total staff complement to 147 478.
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