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Unaudited Group results for the 26 weeks to 27 December 2020
SHOPRITE HOLDINGS LIMITED
(Reg. No. 1936/007721/06)
(ISIN: ZAE000012084)
(JSE Share code: SHP)
(NSX Share code: SRH)
(LuSE Share code: SHOPRITE)
("the Group")
Unaudited Group results for the 26 weeks to 27 December 2020
Pieter Engelbrecht, Chief Executive Officer
We are proud to report the Group's sales increasing by 4.7% for the six
months. Within that, our core Supermarkets RSA segment, representing 78.0%
of Group sales, increased sales by 5.6%. Adjusting for the closure of our
RSA LiquorShop business as a result of nationwide COVID-19 lockdown
regulations, our Supermarkets RSA business grew sales by 7.8%. This is an
incredible result given that our customer base spans the entire South
African food retail spectrum. Our South African supermarkets' internal
selling price inflation of 4.3% for the six months reflects our unwavering
commitment to our customers on price. In true Shoprite style it was a
collective effort across our Shoprite, Usave, Checkers and Checkers Hyper
banners and the team is to be commended. The Supermarkets RSA business has
achieved 22 months of uninterrupted market share gains and in the six months
to 27 December 2020 the Group created a total of 4 305 new jobs.
In significantly more adverse conditions, our Supermarkets Non-RSA
continuing operations achieved constant currency sales growth of 0.9%. The
business remained vigilant, combating the challenges faced across Africa,
however, currency devaluations again eroded much of our efforts. We closed
the last of our Kenyan stores in February 2021 and are at the approval stage
in terms of the sale of our Nigeria supermarket operation. From here, our
capital allocated to the region remains at a minimum and we continue to
manage costs as best as we can.
The successful launch of our Xtra Savings Rewards Programme in our South
African based Shoprite supermarket chain following the success in Checkers,
gave rise to another strategic milestone for the Group. Our Checkers and
Shoprite Xtra Savings Rewards Programme now has the largest membership base
in South Africa, with 17 million rewards members. The opportunities that
this programme affords the Group and its valued customers are significant
and to say we are optimistic with regard to the future for our business as a
result, would be an understatement.
It is noteworthy that the Group increased trading profit by 18.3%,
whilst making significant strides in other areas: borrowings declined by
R5.9 billion to R5.5 billion, inventories reduced by R3.0 billion and
we lived well within our means in terms of capital expenditure of
R1.6 billion.
None of this was achieved in isolation. It was due to the collective effort
of the more than 140 000 employees across the Group, represented in areas
not limited to our aforementioned supermarket operations, who came together
daily to serve our customers and sustain the growth of this great company.
It remained a difficult period in the context of COVID-19 which continued to
weigh on our customers, our people and our operations and my acknowledgement
and sincere thanks go out to all.
Key information - continuing operations
Restated*
Change 27 Dec 29 Dec
% 2020 2019
Sale of merchandise (Rm) 4.7 83 430 79 711
Trading profit (Rm) 18.3 4 706 3 978
Operating profit (Rm) 5.0 4 490 4 275
Profit before income tax (Rm) 1.9 3 081 3 024
Income tax expense (Rm) (4.0) 901 939
Profit for the period (Rm) 4.6 2 180 2 085
Attributable to owners of the parent (Rm) 2 169 2 076
Attributable to non-controlling interest (Rm) 11 9
Basic headline earnings per share (cents) 10.7 419.6 379.0
Basic earnings per share (cents) 4.7 392.9 375.2
Dividend per share (cents) 22.4 191.0 156.0
Profit for the period including discontinued
operations (Rm) 7.9 2 232 2 068
Attributable to owners of the parent (Rm) 2 221 2 059
Attributable to non-controlling interest (Rm) 11 9
Basic headline earnings per share including
discontinued operations (cents) 12.4 429.3 381.9
Basic earnings per share including
discontinued operations (cents) 8.1 402.3 372.1
* Restated for discontinued operations in accordance with IFRS 5 and
the change in guidance contained in SAICA Circular 1/2019: Headline
Earnings relating to the IFRS 16: Leases rule.
Declaration of ordinary dividend
The board has declared an interim dividend of 191 cents (2019: 156 cents)
per ordinary share, payable to shareholders on Monday, 12 April 2021. The
dividend has been declared out of income reserves. The last day to trade cum
dividend will be Tuesday, 6 April 2021. As from Wednesday, 7 April 2021, all
trading of Shoprite Holdings Ltd shares will take place ex dividend. The
record date is Friday, 9 April 2021. Share certificates may not be
dematerialised or rematerialised between Wednesday, 7 April 2021, and
Friday, 9 April 2021, 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 152.8 cents per share for
shareholders liable to pay Dividends Tax and 191 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
condensed consolidated interim financial statements and does not contain
full or complete details. Any investment decisions by investors and/or
shareholders should be based on consideration of the condensed consolidated
interim financial statements published on the Stock Exchange News Service
(SENS) and www.shopriteholdings.co.za as a whole.
The condensed consolidated interim financial statements have been released
on the JSE
(https://senspdf.jse.co.za/documents/2021/jse/isse/SHP/ie2020.pdf)
and are also available for viewing at
https://www.shopriteholdings.co.za/content/dam/SENS/INT2020-Mar2021.pdf.
Copies of the condensed consolidated interim financial statements 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
WE Lucas-Bull PC Engelbrecht
Chairman Chief Executive Officer
Cape Town
16 March 2021
Sponsor: Nedbank CIB
Date: 16-03-2021 07:30:00
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