Get more Mail & Guardian
Subscribe or Login

Shoprite’s first-half profits up by nearly 20%

Africa’s biggest food retailer Shoprite reported an 18.6% rise in first-half profits on Tuesday. This was helped by higher prices, a favourable exchange rate and above-inflation wage increases for consumers in its main South African market.

Shoprite, which runs discount chains, said headline earnings per share (HEPS) totalled 280.8 cents in the six months to end December, compared with 236.8 cents a year earlier.

HEPS, the primary profit measure in South Africa, strips out certain one-off items.

The results support data showing that consumer spending is improving in Africa’s biggest economy due to decades-low interest rates and above-inflation wage hikes for workers in several sectors, but the outlook is uncertain due to high personal debt levels and unemployment.

Retail sales’ growth accelerates
South African retail sales jumped 8.7% year-on-year in December, from an upwardly revised 7.2% growth in November and beating a 6.5% slow down economists had expected.

Shoprite, a domestic merchant seen likely to lose the most from discounter Walmart’s entry into the country, has also benefited from store expansion at home and across the continent.

Walmart and its 51%-owned unit Massmart are also due to report their results this week.

Shoprite said sales increased 13.2% to R41-billion after increasing prices by an average of 4.6% and gaining nearly R30-million from favourable currency swings.

Shares in Shoprite, which operates in countries including Nigeria, Angola and Zambia, inched up 0.73% to R133.65 by 7.44am GMT.

The company’s stock has fallen more than 2% so far this year, lagging behind a 7% rise in the Top-40 index and reflecting views that domestic retailers are overvalued. — Reuters

Subscribe for R500/year

Thanks for enjoying the Mail & Guardian, we’re proud of our 36 year history, throughout which we have delivered to readers the most important, unbiased stories in South Africa. Good journalism costs, though, and right from our very first edition we’ve relied on reader subscriptions to protect our independence.

Digital subscribers get access to all of our award-winning journalism, including premium features, as well as exclusive events, newsletters, webinars and the cryptic crossword. Click here to find out how to join them and get a 57% discount in your first year.

Related stories

WELCOME TO YOUR M&G

If you’re reading this, you clearly have great taste

If you haven’t already, you can subscribe to the Mail & Guardian for less than the cost of a cup of coffee a week, and get more great reads.

Already a subscriber? Sign in here

Advertising

Subscribers only

Fears of violence persist a year after the murder of...

The court battle to stop coal mining in rural KwaZulu-Natal has heightened the sense of danger among environmental activists

Data shows EFF has lower negative sentiment online among voters...

The EFF has a stronger online presence than the ANC and Democratic Alliance

More top stories

South Africa must approach its energy transition pragmatically

A sensible climate policy must balance the imperative of decarbonisation, socioeconomic policy and security of supply considerations

Why handing over ICC suspects could help Sudan’s transition

A failed coup in September, weeks of brinkmanship, and a looming crisis in eastern Sudan have laid bare tensions between civilians and military leaders

Steel strike: Workers struck while the iron was hot

After almost three weeks, labour and employers have reached a deal — setting the steel industry back on its path to recovery

Phoenix activist takes on Durban’s politically connected in November polls

Independent candidates look set to play a greater role in the metro municipality after 1 November
Advertising

press releases

Loading latest Press Releases…
×