S.Africa’s Shoprite posts profit jump on better Q2, declares dividend

By Reuters 12m in the past

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JOHANNESBURG – South African grocery store group Shoprite Holdings reported a ten.4% rise in half-year earnings on Tuesday, helped by a a lot stronger second quarter as liquor gross sales resumed, and declared an interim dividend of 191 cents.

The nation’s greatest grocer additionally stated it closed the final of its Kenyan shops in February and is awaiting regulators’ approval on the sale of its Nigeria grocery store operation, though no different particulars have been disclosed in regards to the deal.

“Management is in the process of concluding a franchise agreement for the Shoprite brand to remain in Nigeria as well as an administration and services agreement to provide support to the new shareholders with operating the outlets,” Shoprite stated.

Shoprite has been reviewing its long-term choices in Africa as foreign money devaluations, decrease commodity costs and resultant excessive inflation have damage buyer affordability and weighed on earnings.

Diluted headline earnings per share (HEPS) from persevering with operations rose to 418 cents within the six-months ended on Dec. 27, in contrast with a restated determine of 378.6 cents a year earlier.

After adjusting for overseas foreign money actions and hyperinflation HEPS grew by 17.1%.

Shoprite, which operates greater than 2,300 shops throughout Africa, reported a 4.7% rise in half-year gross sales to 83.4 billion rand ($5.62 billion).

Home market gross sales, which account for over 78% of the company’s complete gross sales, grew by 5.6% as clients spent extra at its low cost manufacturers and mid-to-upper market Checkers shops.

However, additional progress was capped as a result of full ban on alcohol gross sales in July and subsequent buying and selling restrictions.

The residence supermarkets business has achieved 22 months of “uninterrupted” market share positive aspects, the retailer stated.

Sales at its loss-making operations in the remainder of Africa declined 8.4% in rand phrases on account of ongoing foreign money devaluations in sure key areas like Angola.

($1 = 14.8466 rand)


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