Johannesburg - Shoprite has boosted turnover 14.4 percent to just over R130 billion in the year to June.
It says in a statement released on Tuesday that growth in the comparative period was 11.6 percent. It says net income grew to R4.3 billion from R3.7 billion.
The listed food retailer – home to brands such as Shoprite and Checkers – however benefited from an additional week during the year. This is because retailers account on a full week basis, which means spare days roll over into the new year.
Its trading profit gained to R7.3 billion, a 15 percent increase and its trading margin is stable at 5.6 percent.
The company notes that, during the year, its staff complement hit more than 137 000 and it boasts that more than 76 percent of adults in South Africa shop at its stores.
Its supermarkets outside SA delivered their best ever performance, it says, as sales grew 32.6 percent. Shoprite, which operates in 14 countries on the continent, says this growth was achieved despite the impact of lower commodity prices and the devaluation of the currencies of several of the 14 countries in which it operates.
In South Africa, the group opened a net 49 supermarkets to bring the total operated by its four brands to 964.
CEO Whitey Basson says the company is “delighted” with the overall results it has achieved on the back of a record one billion transactions in a single year. It is especially pleased with results from beyond South Africa’s borders.
“We see the rest of the African continent as the source of much of our future growth. Like any market, the continent has its problems, but after more than 20 years of trading here, we have gained the knowledge and experience to deal effectively with the challenges it presents.”
Basson notes Shoprite’s internal food inflation, measured through tracking price movements of 81 000 product lines each month, averaged 3.5 percent for the period. Statistics SA’s official food inflation rate is 7.2 percent.
Shoprite grew customers 16 percent in the period. It opened a net 18 new supermarkets, mainly in Angola, Zambia and Nigeria.
Basson says there is nothing to indicate the demanding trading conditions in South Africa and elsewhere would ease in the new financial year. “Over the years we have acquired the skill to operate successfully even under the most adverse conditions, and we believe we shall be able to do so again.”
IOL