South Africa’s biggest grocer, Shoprite Holdings, reported a rise in full year profits on Tuesday, but said it expected trading conditions in the new year to be challenging.
The company, which runs the Shoprite and Checkers supermarkets, said diluted headline earnings per share for the year to end June jumped 30,9% to 390,8 cents, in line with its own forecast of a 25% to 35% rise.
Total turnover climbed 24,5% to R59,32-billion, from R46,65-billion in the year-ago period.
The firm said it expected the new financial year to be challenging.
Like most retailers, Shoprite has had to combat the consumer downturn caused by the first recession in 17 years in Africa’s biggest economy.
However, its cheaper product offering has lured cost-conscious customers away from rivals Pick n Pay and Woolworths, who are perceived as more upmarket, making Shoprite the star of South African retailers.
Headline EPS is the main profit gauge in South Africa and strips out certain one-off, non-trading and financial items. – Reuters