| Thu 9 Jul 2009, 10:59 | | SHP - Shoprite Holdings Limited - Operations Update |
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SHP
SHP
SHP - Shoprite Holdings Limited - Operations 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")
Operations Update
For the 12 months to end June 2009 the Shoprite Group increased total turnover
by 24,5% to about R59,3 billion. Growth on a like-for-like basis was 19,1%.
During this period internal food inflation rose to 15,8% compared to 10,6%
during the corresponding 12 months.
Turnover growth slowed in the second half of the year to 21,8% from 27,3%.
Management ascribes the slower turnover growth to the increasing pressure on the
disposable income of consumers and the lower internal food inflation which
reduced from 16,9% in the first six months to 14,7% in the second.
The South African supermarket division, the core operation of the Group,
increased sales by 22,8%. This division continued its policy of cutting margins
on basic foodstuffs to alleviate the impact of food price increases on
consumers.
The 102 supermarkets the Group operates outside the borders of South Africa grew
turnover by 39,9% compared to the previous year. The growth achieved on a like-
for-like basis was 36,7%. Lower turnover growth in the second half of the year
resulted from the strengthening of the rand against the currencies of some of
the countries in which the Group trades in Africa.
The Franchise Division, trading mainly under the OK banner, reported a turnover
increase for the 12 months of 26,6%.
Despite reduced consumer spending on durable goods the Furniture Division
succeeded in growing turnover by 13,9% in a relatively low inflationary
environment.
The above financial information has not been reviewed or reported on by the
Shoprite Holdings` auditors. The financial results for the review period are
expected to be published on Tuesday, 25 August 2009.
Whitey Basson Carel Goosen
Chief executive Deputy managing director
Tel 021 980 4000
Date issued 9 July 2009
Sponsor Nedbank Capital
Date: 09/07/2009 10:59:02 Produced by the JSE SENS Department.
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