Operational update for the quarter ended September 2023

SHOPRITE HOLDINGS LIMITED
(Reg. No. 1936/007721/06)
(ISIN: ZAE000012084)
(JSE Share code: SHP)
(A2X Share code: SHP)
(NSX Share code: SRH)
(LuSE Share code: SHOPRITE)
("Shoprite Holdings" or "the Group")

Operational update for the quarter ended September 2023

This voluntary announcement is issued in conjunction with the Shoprite 
Holdings Annual General Meeting and serves to update shareholders on the 
Group's first quarter period ended September 2023 ("the first quarter", 
"the period"). 

The Group increased sales for the first quarter by 13.2%. The table below 
outlines sales growth by operating segment: 

Sales growth from continuing operations for the three months ended 

September 2023 over the corresponding three months ended              Change
September 2022:                                                            %

Group                                                                   13.2

By segment:
Supermarkets RSA                                                        13.3
Supermarkets Non-RSA                                                     9.7
Furniture                                                                0.5
Other operating segments                                                22.2

Supermarkets RSA

The Group's core Supermarkets RSA segment, the majority of which is 
represented by Shoprite, Usave, Checkers, Checkers Hyper and LiquorShop 
increased sales for the first quarter by 13.3%. Internal selling price 
inflation for the first quarter measured 8.3%.

Market share for the 52 weeks ending September 2023 increased by 124 basis 
points versus the corresponding period last year, extending the period of 
uninterrupted market share gains in our core South African supermarket 
business to 55 months.

In terms of the cost of our day-to-day operations, as a result of ongoing 
electricity load-shedding we confirm the diesel expense to operate 
generators across our South African supermarket business during the first 
quarter amounted to R281 million. The increase in diesel cost resulted in 
the business incurring an additional R90 million charge compared to the 
quarter ended September 2022 ("prior corresponding period"). 

Supermarkets RSA opened 43 stores (net of 42 stores) during the first 
quarter: two Checkers, six Shoprite, five Usave, 18 LiquorShop, eight 
Petshop Science, two UNIQ by Checkers and two Checkers Outdoor. The Group's 
core Supermarkets RSA operating segment is on track to open its planned 195 
new stores for our 2024 financial year.

Supermarkets Non-RSA

The Group's Supermarkets Non-RSA operating segment, trading from nine 
countries outside of South Africa, increased sale of merchandise for the 
first quarter by double digits in constant currency and by 9.7% in our 
reporting currency, the rand. 

Supermarkets Non-RSA continuing operations' store growth was limited to a 
net of two new stores (one Shoprite and one LiquorShop, both of which are 
situated in Eswatini). The segment plans to open 10 stores during the 2024 
financial year. 

Furniture

The Group's Furniture segment sales increased by 0.5% during the first 
quarter. Credit sales participation measured 15.3% of sales. 

The segment's store base decreased by a net of two stores during the first 
quarter to end the period with 432 stores. Two new stores are planned to 
open before the end of the 2024 financial year.

Other operating segments

The Group's Other operating segments reported a 22.2% increase in sales 
whilst sales to our OK Franchise division increased by 22.0%. OK Franchise 
opened a net of 37 new stores during the first quarter, ending with 572 
stores. Other operating segments plan to add a total of 107 stores during 
the 2024 financial year.

Additional comments

This first quarter reports against the prior corresponding period during 
which sales at a Group and core South African supermarkets segment level 
increased by 18.6% and 19.9% respectively. This elevated level of sales 
growth was influenced by us reporting against trade impacted by the July 
2021 social unrest. Despite this notably high base, it is pleasing to see 
our unwavering customer focus continues to reflect a level of sales growth 
considerably ahead of our selling price inflation and the market as a whole. 

Across the board, the Group continues to raise the bar in pursuit of 
delivering the lowest prices, unmatched availability and market-leading 
innovation. Ably supported by the expertise embedded across our supply 
chain, our trading divisions have begun the execution of our festive season 
plan in order to provide our 28.5 million Xtra Savings customers with 
unsurpassed value and incredible ranges at this special and important time 
for them and our business. 

On a net basis, the Group opened 81 stores during the first quarter. The 
majority of these were opened in our core South African supermarkets segment 
around which our group-wide ecosystem strategy is built. Looking ahead, we 
are on track to open our planned 314 new stores for our 2024 financial year.

Next reporting date

The Group plans to issue its 2024 interim period sales update by the 
end of February 2024 and will report its 2024 interim results during 
March 2024. Further detail in terms of reporting dates, as they are 
finalised, will be available on the Group's Shareholder diary
(https://www.shopriteholdings.co.za/shareholders-investors.html) 
on the Company's corporate website. 

The information contained in this announcement has not been reviewed or 
reported on by the Group's external auditors.

13 November 2023

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

Enquiries

Shoprite Holdings Limited Tel: 021 980 4000
Pieter Engelbrecht - Chief Executive Officer 
Anton de Bruyn - Chief Financial Officer 
Natasha Moolman - Group Investor Relations Manager


Date: 13-11-2023 09:00:00
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