Shoprite Holdings’ revenue jumps to USD10.8 billion in six months

Shoprite Holdings’ revenue jumps to USD10.8 billion in six months

Africa’s largest modern grocery retailer, Shoprite Holdings said its gross revenue for the first half of the year jumped by 10.4% to ZAR140.7 billion.

Using real-time exchange rate total revenue for the period stood at USD10,8 billion. On a like for like basis, revenue for the period rose by 5.8%.

The company noted that challenging trading conditions in South Africa continued in the second half of the year, however, the South African supermarket operation increased sales by 10.1% (7.7% if compared to 53 weeks). On a like-for-like basis, sales increased by 6.9%. Internal inflation slowed to 5.9% for the period from the 7.4% in December as the impact of the drought began to ease and compares to 3.9% in the prior year.

The group’s non-RSA countries such as Nigeria and Angola saw a higher growth rate of 13.5% year on year. Shoprite noted that lower commodity prices and the devaluation of certain currencies had a material impact on prices of imported products during the latter part of the year. On a like-for-like basis, sales increased by 1%.

Shoprite said at constant currencies, sales grew by 33.8% (31.6% on a 53-week basis). The fourth quarter, in particular, is where the previous high base in Angola’s sales impacted growth for the year.

Shoprite Holdings is primarily listed on the Johannesburg Stock Exchange, JSE. The company was founded by Christo Wiese. The company has expansive retail operations in Nigeria, where it is not quoted. Shoprite competes with Spar, Game and other medium-sized modern retailers across Nigeria’s economic hubs.

The group operates 2,653 outlets in 15 countries across Africa and the Indian Ocean Islands and reported turnover of R71.297 billion for the six months ended December 2016.