Shoprite Holdings reports impressive growth in fiscal year 2024

Shoprite Holdings Limited announced its reviewed results for the 52 weeks ended June 30, 2024, demonstrating resilience and growth in a challenging retail environment.
The Group reported a 12.0% increase in sales to R246.1 billion, with its core South African supermarkets segment adding R21.4 billion in sales.

According to Pieter Engelbrecht, Chief Executive Officer, “Our 12.0% increase in Group sales reflects our focus on being best-priced, in-stock, solution-driven, and customer-led.
This growth, achieved in a highly competitive market, is a testament to our team’s dedication and commitment to serving our customers.”

The Group’s trading profit increased by 12.4% to R13.4 billion, while diluted headline earnings per share (DHEPS) rose by 7.4% to 1,245.2 cents.
Adjusted DHEPS increased by 10.3% to 1,273.2 cents.

Checkers and Checkers Hyper reported impressive sales growth of 12.3%, while Shoprite and Usave increased sales by 10.7%.
Usave, the limited assortment discount supermarket, grew sales by 13.2%, demonstrating its appeal to price-sensitive customers.

The Group generated R23.6 billion in cash from operations and invested R7.8 billion in its Smarter Shoprite strategy, which focuses on new stores, store upgrades, digital and e-commerce, information technology, sustainability, and supply chain.

Engelbrecht praised the team’s efforts, saying, “Growth of this nature, in a highly competitive market and from a high base, can only be achieved as a result of across-the-board commitment. My sincere thanks are extended to Team Shoprite for their continued dedication to our customer base.”

The Group’s dividend per share increased by 7.4% to 712 cents, returning R3.9 billion in dividends to shareholders.

Looking ahead, Shoprite Holdings has embarked on two structural changes to the business.
The Group has signed an agreement to dispose of its furniture business, including OK Furniture and House & Home brands, to Pepkor Holdings Ltd.

Additionally, Shoprite Holdings is in advanced discussions to acquire the remaining 50% shareholding in Pingo Delivery (Pty) Ltd, its last-mile logistics provider.

Engelbrecht concluded, “Our focus on price and value will remain our top priority for our customers, whose loyalty we appreciate and value above all.”

Shoprite Holdings’ strong performance demonstrates its commitment to delivering value to customers and shareholders alike.

Key Highlights:

• 12.0% increase in Group sales to R246.1 billion
• 12.3% sales growth in Core South African Supermarkets segment
• 12.4% increase in Group trading profit
• 7.4% increase in DHEPS
• R7.8 billion invested in Smarter Shoprite strategy