Headline earnings per share, which exclude one-time items, rose 12 percent to 10.07 rand in the 12 months through June, the Cape Town-based company said in a statement on Tuesday. The board declared a full-year dividend of 5.04 rand a share, an increase of 12 percent. Shoprite expects “positive sales momentum to continue,” the retailer said, after revenue advanced 8.4 percent.
The shares rose 2.5 percent to 206.08 rand as of 9:23 a.m.
Pieter Engelbrecht Chief Executive Officer said: “We
believe there is room for further growth as we continue to improve efficiencies
and profitability both in
While the South African economy is in a recession, “the group remained resilient with growth in sales and market share.”
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The earnings are the first to be reported by Shoprite since fellow retailer Steinhoff agreed to buy a 22.7 percent stake as part of the planned listing of its African assets including clothing chain Pep.
This will be the first step taken by South African billionaire Christo Wiese, who chairs and is the largest shareholder in both companies, in combining his interests in the retail giants. A previous plan was called off in February.
“We don’t really see the synergies between food and furniture and more information is needed on how these benefits are found,” Damon Buss, an analyst at Electus Fund Managers Ltd. in Cape Town, said by phone. “We also have questions about the difference in strategy between the two companies with Shoprite having been more organic growth traditionally and Steinhoff more acquisitive growth.”
The shares fell the most in almost four months on July 18
after Shoprite reported weaker second-half sales growth partly due to a
slowdown in stores beyond its home market. Retailers including Shoprite have
been relying on growth across sub-Saharan Africa to help offset sluggish
The company has been focused on capturing market share in
three different tiers of customers, Charles Allen, a London-based analyst at
Bloomberg Intelligence, said by phone. Growth in