Shoprite Holdings Limited - Trading Update At Annu
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 2006 financial year the Group increased total
turnover by 11,8% on a comparable basis, continuing the sales trend that
characterised the 2005 financial year. Although food inflation increased
marginally it remained well below the CPI with many staple products selling at
prices below those of a year ago.
Operating profit and operating margins for the Group were on budget.
All three of the Group"s FMCG chains - Shoprite, Checkers and Usave - returned
solid growth, with Shoprite in particular reporting increases in basket size and
the number of customer transactions. The Group"s market share increased
marginally. In line with the rest of the furniture sector, the furniture
division is starting to reflect the slow-down in consumer spending with a
turnover growth of 13,9% . The Group"s non-RSA operations recorded sales growth
of 12,9% in rand terms and 16,0% in stable currencies.
In the first three months of the 2006 financial year 8 supermarkets and 5 Usave
outlets were opened. A further 32 stores will be opened by the end of December.
Of these, 20 will be located within South Africa and 12 outside its borders. The
opening of 34 own stores has thus far been confirmed for the second half of the
financial year.
The Group is confident that the growth trend of the first quarter will continue
in the second quarter. A decision by government to curb consumer spending by
increasing interest rates could lower such expectations. In that case the sale
of durable and semi-durable goods would be affected more than that of foods as
the lower income groups tend to be less affected by such changes.
Cape Town
27 October 2005
Sponsor: Nedbank Capital
Date: 27/10/2005 10:00:03 AM Produced by the JSE SENS Department
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