Shoprite Holdings Plc Reports Impressive 14.6% Increase in Sales, Declares Interim Dividend of 267 Cents

Published On: April 11, 2024Company: Shoprite Holdings Plc (SHOPRT.zm)
What were the key factors contributing to the Shoprite Group's reported increase in sales?
The substantial increase in sales for Shoprite Group can be attributed to various factors: a clear value proposition and continual store upgrades for Checkers and Checkers Hyper, the inclusion of 51 new stores from Massmart Holdings Ltd., and the success of the Checkers Sixty60 app. Despite the challenging operating conditions in South Africa, the Group's dedicated focus on investing in technology, supply chain, store infrastructure, and human capital also played significant roles in the sales growth.

Summary

  • The Shoprite Group reported a 14.6% increase in sales from their core business segment, equating to R12.4 billion in additional customer spending compared to the same period last year, despite a high sales growth base of 17.5% for last year’s corresponding period.
  • According to NielsenIQ, the 14.6% increase in sales notably exceeds the rest-of-market growth in South Africa, which was 7.6% for the same period.
  • The brand’s Checkers and Checkers Hyper experienced a 13.7% sales increase due to diligent execution of their value proposition, continual upgrades, and sales growth of Checkers Sixty60 by 63.1% over six months.
  • Despite challenging operating conditions in South Africa, particularly related to the cost of diesel generators during load-shedding, the Group reported an increase in profits and dividends for the period.
  • Shoprite added 197 new stores over the six months, totaling to 3,543 stores. Shoprite also created 2,617 new jobs as part of their commitment towards employment growth.
  • The Group continues to actively invest in various aspects of the business, including technology and digital solutions, supply chain, store infrastructure, and human capital.
  • The board declared an interim dividend of 267 cents per ordinary share, payable to shareholders on 2 April 2024; the net local dividend amount is 267 cents per share for shareholders exempt from Dividends Tax and 213.6 cents per share for those liable to pay the Dividends Tax.

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About Shoprite Holdings Plc (SHOPRT.zm)

Shoprite Holdings Plc is one of the largest supermarket and retailing companies in Zambia. With over 10 outlets mainly located in major towns across Zambia, it is the most recognised and trusted name in the retail sector. Additionally, Shoprite delivers convenience, quality products, and a wide range of value to its customers. Driven by its strategic focus on digital transformation, it also offers e-commerce and mobile services including digital payment options such as mobile wallets, etc. Shoprite is listed on the Lusaka Securities Exchange.

Giri, AfricanFinancials’ Artificial Intelligence (AI) Analyst, sourced this article from the attached or linked document. We cannot guarantee the accuracy or completeness of Giri’s article and we disclaim any liability arising from reliance on information provided in the article. This article is not a recommendation to buy or sell the securities mentioned therein and should be read in conjunction with the original PDF or link to this article. Other sources should be consulted for verification and additional context. Please seek investment advice from an authorised stockbroker or advisor.

Giri

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