| Mon 7 Jul 2008, 10:30 | | SHP - Shoprite Holdings Limited - Trading update |
|
SHP
SHP
SHP - Shoprite Holdings Limited - Trading update
SHOPRITE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration no. 1936/007721/06
ISIN: ZAE000012084
JSE share code: SHP
NSX share code: SRH
LuSE share code: SHOPRITE
("The Group")
TRADING UPDATE
For the 12 months to end June 2008 the Shoprite Group increased total turnover
by 22,3% to about R47,7 billion. Growth on a like-for-like basis was 18,0%.
During this period internal food inflation rose to 10,6 % compared to less than
6% during the corresponding 12 months.
The South African supermarket division, the core operation of the Group,
increased sales by 21,8%. The dominant brand, Shoprite, grew turnover 25,0%.
This growth is still somewhat distorted by the impact on its sales by the
industrial action in the first half of the 2007 financial year. Growing by
15,6%, Checkers` turnover reflected the effect of higher interest and bond rates
on the credit leveraged sector of the community.
The Group`s success in a tough consumer spend environment has been driven by
management`s strategic decision to cut margins on basic foodstuffs in an attempt
to alleviate the impact of worldwide food price increases on consumers. Combined
with Shoprite`s positioning on lowest prices, this resulted in a customer
transaction increase of 10,3%.
The 100 supermarkets the Group operates outside the borders of South Africa
increased turnover by 38,2% from the previous year. The growth achieved on a
like-for-like basis was 30,5%. As elsewhere, food inflation in these countries
in Africa also put upward pressure on prices.
The Franchise Division, trading mainly under the OK banner, managed a turnover
increase of 17,0%.
Unlike the food divisions, the Furniture Division continued to operate in a near
deflationary environment. Despite lower consumer spending on durable goods and
the introduction of the National Credit Act, the division still succeeded in
growing turnover by 5,6%.
The above financial information has not been reviewed or reported on by the
Shoprite Holdings` auditors. The financial results for the review period will be
published on Tuesday, 02 September 2008.
Whitey Basson Carel Goosen
Chief executive Deputy managing director
Tel 021 980-4000
Date issued 07 July 2008
Sponsor Nedbank Capital
Date: 07/07/2008 10:30:02 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
