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SHOPRITE HOLDINGS LIMITED - Unaudited Group results for the 26 weeks ended 2 January 2022

Release Date: 08/03/2022 08:00
Code(s): SHP     PDF:  
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Unaudited Group results for the 26 weeks ended 2 January 2022

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 ENDED 2 JANUARY 2022

Pieter Engelbrecht, Chief Executive Officer

The extraordinary growth in sales and profits reported by the Group for the 
first half of our 2022 year is testament to the capable people of Shoprite, 
united in their commitment to the Group's millions of customers throughout 
South Africa and Africa. The execution strength demonstrated throughout our 
supermarket, furniture and franchise businesses during what can only be 
described as some of the most difficult times South Africa has seen for many 
years was unsurpassed. Similarly, our supermarket business outside South 
Africa has sustained its profitability. All credit to our teams who operate 
in these regions which, in their own right, can be extremely challenging.

Our South African supermarket business, representing 79.5% of Group sales, 
increased sales by 11.3%. Despite having two of our large format Checkers 
Hypers still closed due to the July 2021 civil unrest, all of our 
supermarket brands grew sales ahead of the market. Shoprite and Usave, which 
together make up 52.5% of our Supermarkets RSA operating segment increased 
sales by 7.3%. Checkers and Checkers Hyper, which make up 40.0% of 
Supermarkets RSA sale of merchandise, increased sales by 11.4%. After being 
closed for much of last year due to lockdown regulations our Shoprite and 
Checkers LiquorShop business, which constitutes 7.4% of the segment's sales, 
increased by 49.8%. 

The continued momentum and customer support demonstrated by all our 
supermarket brands is particularly gratifying given our relentless focus on 
affordability. Our low-price promise continues to guide our daily decision 
making, evidenced by our 2.6% selling price inflation for the Supermarkets 
RSA segment for the six months. In addition to this, our 23.1 million 
customers who have joined the Shoprite and Checkers Xtra Savings Rewards 
Programme have saved R4.5 billion during this six-month period alone. 

We've continued to strengthen our core supermarket business by opening new 
stores, updating existing stores, introducing new products and bringing new 
trading formats to the market. We've also evolved our fintech business and 
ShopriteX, the Group's tech and innovation hub, which has continued to raise 
the bar with numerous initiatives. 

Delivering a 25.5% headline earnings per share growth from continuing 
operations in a difficult environment is a result of world-class execution 
of a clear plan, underscored by our daily obsession with affordability for 
our customers. It is a goal that keeps us grounded, aligned and motivated as 
we move forward to better the lives of customers and we look forward to 
building on this in the years to come.

                                                                  Restated*
                                             Change       2 Jan     27 Dec
Key information - continuing operations           %        2022       2020

Sale of merchandise (Rm)                       10.0      91 125     82 820 
Trading profit (Rm)                            14.5       5 422      4 737 
Operating profit (Rm)                          15.4       5 113      4 432 
Profit before income tax (Rm)                  28.4       3 901      3 039 
Income tax expense (Rm)                        34.1       1 203        897 
Profit for the period (Rm)                     26.0       2 698      2 142 
Attributable to owners of the parent (Rm)                 2 682      2 131 
Attributable to non-controlling interest (Rm)                16         11 
Basic headline earnings per share (cents)      25.5       522.6      416.5
Basic earnings per share (cents)               27.2       491.2      386.1
Dividend per share (cents)                     22.0       233.0      191.0

Profit for the period including discontinued 
operations (Rm)                                22.3       2 730      2 232 
Attributable to owners of the parent (Rm)                 2 714      2 221 
Attributable to non-controlling interest (Rm)                16         11 
Basic headline earnings per share including 
discontinued operations (cents)                23.1       528.4      429.3
Basic earnings per share including 
discontinued operations (cents)                23.5       497.0      402.3

* Restated for the classification of the Group's Kenyan, Ugandan and
  Madagascan operations as discontinued operations in accordance with
  IFRS 5: Non-current Assets Held for Sale and Discontinued Operations.

Declaration of ordinary dividend

The Board has declared an interim dividend of 233 cents (2021: 191 cents)
per ordinary share, payable to shareholders on Monday, 11 April 2022. 
The dividend has been declared out of income reserves. The last day to
trade cum dividend will be Tuesday, 5 April 2022. As from Wednesday,
6 April 2022, all trading of Shoprite Holdings Ltd shares will take place
ex dividend. The record date is Friday, 8 April 2022. Share certificates
may not be dematerialised or rematerialised between Wednesday,
6 April 2022, and Friday, 8 April 2022, 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 233 cents per share for shareholders
   exempt from paying Dividends Tax and 186.4 cents per share for
   shareholders liable to pay 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/2022/jse/isse/SHP/ie2021.pdf) 
and are also available for viewing at 
https://www.shopriteholdings.co.za/content/dam/SENS/INT2021-Mar2022.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
8 March 2022

Sponsor: Nedbank Corporate and Investment Banking, a division of Nedbank
Limited


Date: 08-03-2022 08:00:00
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