Shoprite Holdings Limited - Trading Statement And Cautionary Announcement
SHOPRITE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1936/007721/06
ISIN ZAE000012084
JSE share code SHP
NSX share code: SRH
LUSE share code: SHOPRITE
(`Shoprite` or `the company`)
TRADING STATEMENT AND CAUTIONARY ANNOUNCEMENT
During the year to 30 June 2004, the Shoprite Group increased turnover on the
previous year by 7.3% to approximately R26,4 billion. Sales figures were
negatively affected by the nationwide strike in October and November 2003,
following the implementation of the new Sectoral Wage Determination Act, as well
as the strengthening of the Rand against other African currencies.
Despite these constraints, satisfactory growth was achieved by the Checkers
brand with a like-for-like increase in turnover for the 12 months to 8,0%. Total
sales growth of 7.3% in Shoprite stores was negatively influenced by the low
food inflation. Stores closed during the strike were mostly Shoprite outlets.
Due to the prevailing economic conditions affecting the Group`s target market,
the increase of 4.1% in the number of customers served in the two major chains
was not matched by basket growth, which on average was 2.9% higher.
The non-RSA operations performed well with sales growth of 20.7% on a like-for-
like basis and 26.7% on total sales at constant conversion rates. Despite the
strength of the local currency, sales in Rand terms still showed positive growth
of 2.7%.
The new U-Save format is now well established with a total of 59 stores
currently trading, 16 of these outside South Africa.
Good growth of 24.5% (like-for-like 20.4%) was recorded by the Furniture
Division despite the drop in selling prices in most categories prompted by a
stronger Rand.
The above financial information has not been reviewed or reported on by
Shoprite`s auditors. Shareholders are advised to exercise caution in dealing
with the company`s shares until the results for the financial year to 30 June
2004 are published on 24 August 2004.
22 July 2004
Sponsor
Nedbank Capital
Date: 22/07/2004 02:38:41 PM Produced by the JSE SENS Department
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