The Shoprite Group increased total turnover by a healthy 10.4% to about ZAR140.7 billion for the 12 months to June 2017 with like-for-like turnover growth improving by 5.8%.
Turnover for the 52-week period compared to the 53 weeks of the prior year increased by 8.2%.
The challenging trading conditions in South Africa continued in the second half of the year and 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 supermarkets recorded sales growth of 13.5% (11.7% if compared to 53 weeks) mainly due to the impact of lower commodity prices and the devaluation of certain currencies. This 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%. Taken 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.
The Group’s furniture division still faced industry challenges around affordability requirements of the National Credit Act and subdued durable purchases, with the result that sales grew by 6.2% for the period (4.3% if compared to 53 weeks).
The Other Operating Segments achieved growth of 7.7% (7.0% if compared to 53 weeks).
The above financial information is the responsibility of the directors of Shoprite Holdings Ltd and has not been reviewed or reported on by Shoprite Holdings’ auditors. Constant currency information as well as comparisons to pro forma 52-week financial information for the previous year has been prepared for illustrative purposes only.
The consolidated financial results for the review period will be published on or about 22 August 2017.
Impact of the Group’s pro-forma constant currency disclosure.
The Group discloses unaudited constant currency information in order to indicate the Group’s underlying non-RSA businesses performance in terms of sales growth, excluding the effect of foreign currency fluctuations.
To present this information, current period turnover for entities reporting in currencies other than ZAR are converted from local currency actuals into ZAR at the prior year’s actual average exchange rates on a country-by-country basis.