Retailer Shoprite Holdings expects to report a more than 20% rise in annual earnings as it continues to advance its omnichannel growth strategy, powered by its core RSA supermarkets business.
Headline earnings per share (HEPS) for total operations for the 52 weeks ended June 9 are seen 15.2%-25.2% higher at 1,372.0c-1,491.2c. Heps from continuing operations are expected to be 9.4%-19.4% higher year on year.
Total group sales from continuing operations are expected to rise 9% to R262.3bn, with sales from continuing operations up 8.9%.
The group said the previous year's figures had been restated due to the group’s remaining furniture operations in Angola and Mozambique and its Malawi and Ghana operations being classified as discontinued in accordance with IFRS 5.
Supermarkets RSA achieved sales growth of 9.5%, extending its unbroken market share gains to now its fifth consecutive year, Shoprite said.
As a segment it contributes 84.5% to group sales. Like-for-like sales (same-store sales) growth for the year measured 4.8%.
Checkers and Checkers Hyper, inclusive of Checkers LiquorShop, reported sales growth of 13.8%, while online sales through its on-demand delivery platform Sixty60 increased by 47.7%.
RSA operations opened 194 main banner supermarkets during the year — 43 Shoprite stores, 38 Usave stores, 29 Checkers stores and three Checkers Hyper stores. In addition, the LiquorShop business added 36 Checkers and 45 Shoprite LiquorShops respectively.
“We continue to expand our footprint as part of our omnichannel growth strategy designed to extend our reach in adjacent categories where we are currently underrepresented,” it said.
Petshop Science added 60 new stores to total 144 stores; Checkers Outdoor added eight new stores to total 28 stores; Uniq clothing by Checkers added 10 new stores to total 30 stores and Little Me opened one new store to total 11 stores.
The group’s Supermarkets non-RSA unit’s sales increased by 6.4% in rand — the group’s reporting currency — and by 14.2% in constant currency. This equates to an 8.1% contribution to group sales.
During the first half period the group repurchased shares to the value of R997m, and there were no repurchases during the second half.
Shoprite will release its full-year results on September 2.
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