Shoprite Holdings Limited - Trading Update At Annual General Meeting
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
(`The Group`)
TRADING UPDATE AT ANNUAL GENERAL MEETING
In the first three months of the 2005 financial year the Shoprite Group
increased turnover by 9,3% on a like-for-like basis, continuing the upward sales
curve of the latter part of the previous year. This growth was achieved despite
very low food inflation that varied between 1,6% and 2,7%, with many staple
products still selling at prices below those of a year ago. Operations elsewhere
in Africa were still hampered by the effects of the strong rand.
Operating profit and operating margins for the Group were on budget.
All three of the Group`s FMCG chains - Shoprite, Checkers and Usave - showed
sustained growth while its furniture division continued to grow turnover above
20% and in line with the rest of this buoyant sector.
The high level of consumer confidence was reflected in the growth in basket size
above the inflation rate and the increase in the number of customer
transactions. The Group grew market share marginally on a same store basis.
In the period to date, 3 supermarkets and 8 Usave stores were opened, and a
further 21 stores will be opened by December 2004. Of these, 26 will be located
within South Africa and six outside its borders. The Group plans to open a
further 115 stores to December 2005.
Given the positive consumer confidence, the Group is looking forward to an
exciting Christmas trading period. Turnover and operating profit for the six
months to end December are expected to be better than for the corresponding
period when sales were adversely impacted by a countrywide strike that affected
primarily Shoprite stores.
Cape Town
28 October 2003
Sponsor: Nedbank Capital
Date: 28/10/2004 10:00:10 AM
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