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Group results for the 52 weeks ended 2 July 2023
SHOPRITE HOLDINGS LIMITED
(Reg. No. 1936/007721/06)
(ISIN: ZAE000012084)
(JSE Share code: SHP)
(A2X Share code: SHP)
(NSX Share code: SRH)
(LuSE Share code: SHOPRITE)
("the Group")
Group results for the 52 weeks ended 2 July 2023
Pieter Engelbrecht, Chief Executive Officer:
2023 was extraordinary as the Group gained record levels of market share,
saved customers over R13.5 billion in Xtra Savings, and still managed to
increase profits and dividends, despite the prohibitive cost to the business
owing to unprecedented levels of load-shedding.
Sales growth of 17.8% in our core Supermarkets RSA business demonstrates
our multi-year transformation strategy underpinned by our Smarter Shoprite
and core supermarkets segmentation approach.
Checkers and Checkers Hyper's 18.0% sales growth can be attributed to superb
delivery on the value and range our customers have come to know, trust, and
expect from us. Checkers Sixty60 increased sales by 81.5%, underscoring our
omnichannel customer growth.
Shoprite and Usave's commitment to low prices and affordability delivered
sales growth of 15.6% with second half sales including the successful
integration of 92 Massmart stores into our operations. Our Shoprite and
Usave customer, core to our business, is battling high costs of living and
spurring us on to continually improve product affordability.
Our customers continued to support our efforts across our core supermarket
and LiquorShop businesses in South Africa, spending an additional
R26.0 billion more than last year with us. This equated to a 1.4% increase
in market share, extending our period of uninterrupted South African market
share gains to 52 months.
In the context of the country's power challenges we are pleased to report
growth in headline earnings and dividends per share. It is disappointing,
however, that if not for the R1.3 billion expense incurred to power
generators across our South African store base, our market leading sales
growth would have delivered higher returns for our shareholders. Similarly,
our profit growth would also have resulted in a higher Shoprite Employee
Trust distribution for our employees.
In a record year for store growth, we added 340 net new stores to total
3 326 as a Group. We created 3 651 new jobs not including the 4 480 people
employed since January 2023 as part of the Massmart acquisition.
Notwithstanding the impact of the diesel on profits this year, our
Shoprite Employee Trust, now in its second year, expensed R235 million
(2022: R128 million) in relation to employee distributions in South Africa
and equivalent awards to qualifying employees in countries outside South
Africa during 2023.
These are amongst many commendable Group achievements this year of which I
am incredibly proud. My sincere thanks are extended to our valued customers
and almost 154 000 employees who make up Team Shoprite. It is a result of
your leadership and collective commitment that this performance, which in
turn benefits so many, was made possible.
Restated*
Change 52 weeks 52 weeks
Key information - continuing operations % 2023 2022
Sale of merchandise (Rm) 16.9 214 956 183 868
Trading profit (Rm) 5.7 11 916 11 278
Operating profit (Rm) 11.7 12 344 11 055
Profit before income tax (Rm) 9.6 9 132 8 332
Income tax expense (Rm) 10.1 2 812 2 553
Profit for the year (Rm) 9.4 6 320 5 779
Attributable to owners of the parent (Rm) 6 305 5 750
Attributable to non-controlling interest (Rm) 15 29
Headline earnings per share (cents) 9.6 1 166.2 1 063.9
Basic earnings per share (cents) 10.0 1 161.4 1 055.5
Dividend per share (cents) 10.5 663.0 600.0
Profit for the year including
discontinued operations (Rm) 2.8 5 901 5 740
Attributable to owners of the parent (Rm) 5 886 5 711
Attributable to non-controlling interest (Rm) 15 29
Headline earnings per share including
discontinued operations (cents) 3.7 1 095.3 1 056.3
Basic earnings per share including
discontinued operations (cents) 3.4 1 084.3 1 048.3
* Restated for the classification of the Group's DRC operations
as discontinued operations in accordance with IFRS 5: Non-current
Assets Held for Sale and Discontinued Operations and the
reclassification of the Group's share of profit of equity accounted
investments.
Declaration of ordinary dividend
The Board has declared a final dividend of 415 cents (2022: 367 cents) per
ordinary share, payable to shareholders on Monday, 2 October 2023. The
dividend has been declared out of income reserves. This brings the total
dividend for the year to 663 cents (2022: 600 cents) per ordinary share. The
last day to trade cum dividend will be Tuesday, 26 September 2023. As from
Wednesday, 27 September 2023, all trading of Shoprite Holdings Ltd shares
will take place ex dividend. The record date is Friday, 29 September 2023.
Share certificates may not be dematerialised or rematerialised between
Wednesday, 27 September 2023, and Friday, 29 September 2023, both days
inclusive.
In terms of the Dividends Tax, the following additional information is
disclosed:
1. The local dividend tax rate is 20%.
2. The net local dividend amount is 415 cents per share for shareholders
exempt from paying Dividends Tax and 332 cents per share for
shareholders liable to pay Dividends Tax.
3. The issued ordinary share capital of Shoprite Holdings Ltd as at the
date of this declaration is 591 338 502 ordinary shares.
4. Shoprite Holdings Ltd's tax reference number is 9775/112/71/8.
About this announcement
This short-form announcement is the responsibility of the Directors of
Shoprite Holdings Ltd. It is only a summary of the information in the
condensed consolidated financial statements and does not contain full or
complete details. The condensed consolidated financial statements for the
year ended 2 July 2023 have been reviewed by Shoprite Holdings Ltd's
external auditors who have reached an unmodified review conclusion. Any
investment decisions by investors and/or shareholders should be based on
consideration of the condensed consolidated financial statements as a whole.
The condensed consolidated financial statements have been released on the
JSE at https://senspdf.jse.co.za/documents/2023/jse/isse/SHP/ye2023.pdf
and are also available for viewing at
https://www.shopriteholdings.co.za/docs/ye2023-sep2023.pdf.
Copies of the condensed consolidated financial statements may be requested
from the Company Secretary (This email address is being protected from spambots. You need JavaScript enabled to view it., tel +27 (0)21 980 4284)
at PO Box 215, Brackenfell, 7561, South Africa.
By order of the Board
WE Lucas-Bull PC Engelbrecht
Chairman Chief Executive Officer
Cape Town
5 September 2023
Sponsor: Nedbank Corporate and Investment Banking, a division of
Nedbank Limited
Date: 05-09-2023 08:00:00
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