Wrap Text
Group results for the year ended 30 June 2019
SHOPRITE HOLDINGS LIMITED
(Reg. No. 1936/007721/06)
(ISIN: ZAE 000012084)
(JSE Share code: SHP)
(NSX Share code: SRH)
(LuSE Share code: SHOPRITE)
("the Group")
SHOPRITE HOLDINGS: GROUP RESULTS FOR THE YEAR ENDED 30 JUNE 2019
Key information
% change 52 weeks 52 weeks
2019 2018
Sale of merchandise (Rm) 3.6 150 395 145 104
Trading profit (Rm) -14.3 6 876 8 024
Operating profit (Rm) -8.2 6 911 7 527
Profit before income tax (Rm) -13.7 6 339 7 347
Income tax expense (Rm) -2.6 2 068 2 124
Profit for the year (Rm) -18.2 4 271 5 223
Attributable to owners of the parent (Rm) 4 260 5 211
Attributable to non-controlling interest (Rm) 11 12
Basic headline earnings per share (cents) -19.6 780.8 971.4
Basic earnings per share (cents) -17.9 768.2 936.0
Dividend per share (cents) -34.1 319.0 484.0
Pieter Engelbrecht, chief executive officer
Our core operations, Supermarkets RSA's sales growth of 4.9%, with like-for-
like sales growth of 1.9%, is a performance significantly impacted by our
well documented first half challenges. With the strike in the DC behind us,
our team worked tirelessly to restore performance in the second half. It is
pleasing to report that we ended the year with our final quarter's sales in
Supermarkets RSA growing by 9.4%. Our in-stock levels are now higher than
prior to our system implementation and without compromising on our low price
leadership, we achieved a second half trading margin in Supermarkets RSA of
5.5%.
We've continued with our growth strategy to capture a larger share of the
premium food segment through the ongoing Checkers repositioning. The number
of Checkers stores in the new look FreshX format now totals 21. We are most
pleased with returns from these upgrades and, therefore, our medium to long-
term target of 80 stores in this format remains unchanged. Our focus on the
core Shoprite and Usave customers, who we strive to serve with excellence
daily, has remained strong as we continue to bring affordable food retail
into the communities where our customers reside.
Notwithstanding the much improved recent performance in our core
Supermarkets RSA division, which generates 74.9% of our sales and grew
second half sales by 7.4%, it was a testing year. A constrained economy,
inventory shortages post industrial action and the implementation of a new
enterprise wide IT system across our store base resulted in lost sales. With
affordability remaining the top priority for our customers, we
unquestionably stood by our lowest price promise. Selling price inflation in
our Supermarkets RSA division for the year measured only 1.2%, and similar
to last year, we traded throughout the year with many items in key
categories in deflation. At year-end, the number of products priced lower
than last year measured at 9 679.
Ongoing forex shortages, currency devaluations and the aftermath of rampant
inflation in Angola and its ongoing impact on affordability took a further
toll on our Non-RSA business. Supermarkets Non-RSA reported a trading loss
of R265 million for the year. Despite no foreseen respite in short-term
trading conditions in the region, we are committed to our customers in the
14 Non-RSA countries in which we operate. We remain confident in the
opportunity our entrenched position as Africa's leading food retailer will
bring as the economic fortunes of the countries where we trade improve.
Given the challenging global economic backdrop, we are remaining focused on
growth opportunities in our home market, inclusive of our established
African operations, rather than pursuing businesses in foreign geographies.
Social responsibility has and always will be a priority for the Group.
Amongst many initiatives focused on improving the lives of our fellow South
Africans, it is noteworthy that this year we sold a record of 53 million
subsidised deli meals and 58 million loaves of brown bread, both for under
R5. We also created a further 3 175 employment opportunities whilst
improving our focus on sustainability and governance. I am pleased to be
able to say that we have the right people, resources and plans in place to
entrench and grow our leading food retail position, both in South Africa and
on the rest of the African continent and, therefore, to grow our
profitability over the long term.
Declaration of ordinary dividend
The board has declared a final dividend of 163 cents (2018: 279 cents) per
ordinary share, payable to shareholders on Monday, 9 September 2019. The
dividend has been declared out of income reserves. This brings the total
dividend for the year to 319 cents (2018: 484 cents) per ordinary share. The
last day to trade cum dividend will be Tuesday, 3 September 2019. As from
Wednesday, 4 September 2019, all trading of Shoprite Holdings Ltd shares
will take place ex dividend. The record date is Friday, 6 September 2019.
Share certificates may not be dematerialised or rematerialised between
Wednesday, 4 September 2019, and Friday, 6 September 2019, both days
inclusive.
In terms of the Dividends Tax, the following additional information is
disclosed:
1. The local dividend tax rate is 20%.
2. The net local dividend amount is 130.4 cents per share for shareholders
liable to pay Dividends Tax and 163 cents per share for shareholders
exempt from paying Dividends Tax.
3. The issued ordinary share capital of Shoprite Holdings Ltd as at the
date of this declaration is 591 338 502 ordinary shares.
4. Shoprite Holdings Ltd's tax reference number is 9775/112/71/8.
About this announcement
This short-form announcement is the responsibility of the directors of
Shoprite Holdings Ltd. It is only a summary of the information in the
summary consolidated financial results and does not contain full or complete
details. Any investment decisions by investors and/or shareholders should be
based on consideration of the summary consolidated financial results
published on the Stock Exchange News Service (SENS) and
http://www.shopriteholdings.co.za as a whole.
The summary consolidated financial results have been released on the JSE
(https://senspdf.jse.co.za/documents/2019/jse/isse/SHP/ye2019.pdf) and are
also available for viewing at https://www.shopriteholdings.co.za/content/
dam/SENS/2019/YE2019-Aug2019.pdf. Copies of the summary consolidated
financial results may be requested from the company secretary
(cosec@shoprite.co.za, tel +27 (0) 21 980 4284) at PO Box 215, Brackenfell,
7561, South Africa.
By order of the board
CH Wiese PC Engelbrecht
Chairman Chief Executive Officer
Cape Town
20 August 2019
Sponsor
Nedbank Corporate and Investment Banking
Date: 20/08/2019 09:00:00
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