Africa and Nigeria’s largest retail supermarket chain, Shoprite Holdings has released its 2016 Full Year profits. The company reported a 17% increase in profit after tax as it reported an earnings per share of 899.7 cents compared to 769.1 cents per share a year earlier.
Here are the key highlights
- Shoprite Group’s total turnover grew by 14.4% to more than R130 billion during a 53-week period (comparative 52-week growth:11.6%).
- Shoprite’s revenue of R130.028 billion is the equivalent of about N3 trillion about half of Nigeria’s 2016 Budget
- The group also reported that about R22.2 billion (N520 billion) as sales from merchandize from locations other than South Africa. This includes, Nigeria, Angola and Zambia.
- The Group’s trading profit for the 12 months to June 2016 was up 15.0% to R7.278 billion and trading margin remained stable at a creditable 5.6%.
- The Shoprite chain operated successfully in every one of the 14 markets in which it has a presence outside South Africa, increasing the number of its customers by 16%.
- The Group opened 22 supermarkets during the review period, most of them in Angola, Zambia and Nigeria, to bring the total number of supermarkets beyond South Africa’s borders to 207.
- Angola was the star performer as, unlike most other retailers, the Group was not restricted in its trading by the country’s severe lack of foreign exchange. In fact, it was able to replenish its 29 supermarkets, spread throughout the country, on an almost continuous basis. This near-exclusive availability of stock propelled very strong sales to the extent that Angola reported the highest sales growth of all the countries where Shoprite trades.
- It opened a net 18 new supermarkets, mainly in Angola, Zambia and Nigeria. Despite the severe lack of foreign exchange in Angola which left most of its competitors without stock, Shoprite was able to replenish its supermarkets on a more consistent basis which boosted turnover.
- In South Africa, where the Group opened a net 49 supermarkets to bring the total operated by its four brands to 964, turnover increased by 10.9% to R94.167 billion, generating a trading profit of R5.814 billion for the 53 weeks. The Checkers chain, where work is ongoing to upgrade its specialist offerings and fresh foods aimed at upmarket customers, again reported solid growth, growing turnover by 11%.
- Shoprite Group has a total staff of 137 775 – 21 000 of them elsewhere in Africa
- The Group recorded an exchange rate loss of R46 million against a loss of R132 million in the corresponding period. This was mainly due to the devaluation of the Angolan, Nigerian and Zambian currencies against the US$ during the period under review with the resultant effect on short-term loan balances.
Get the report here
