| Tue 10 Jan 2006, 15:21 | | Shoprite Holdings Limited - Trading update |
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SHP
SHP
Shoprite Holdings Limited - Trading 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")
Trading update
For the six months to 1 January 2006, comprising 26 weeks, the Shoprite
Group increased turnover by 9,4% to about R16,7 billion, compared to the
corresponding six months of 27 weeks. If the additional week of the previous
reporting period is disregarded, turnover growth was 13,7%.
All other comparatives contained in this Trading Statement have been
calculated on the basis of a 26-week period.
The six months of the review period lived up to Management"s expectations,
with all its retail divisions reporting solid turnover growth in an
environment in which internal food inflation in its different brands
averaged 2,5%.
The strong surge in sales at the lower end of the market was bolstered by
government"s wide-ranging support for low-income earners.
The Shoprite brand"s turnover growth mirrored the continuing high consumer
confidence especially at the lower end of the market. It grew sales in
existing business by 8,3% and overall by 13,4%. A total of 26 new stores
were opened during the reporting period.
The Checkers brand increased its appeal to higher-end consumers by further
improving its ranging, especially of convenience and fresh products. It
increased turnover on existing business by 7,5% and total turnover by 12,5%.
It added 10 new outlets to its store complement.
Strong consumer support for the Usave brand resulted in a net gain of 9 new
outlets during the period to bring the total number of stores of the Group"s
youngest chain to 93. Sales growth of 37,7% continue to exceed budget.
Lower turnover growth in the Furniture Division confirmed market speculation
that this sector is slowing down after a boom period lasting almost three
years. The division nevertheless grew turnover by 14,0% in a highly
competitive environment.
The Group"s non-RSA operations performed satisfactorily, with sales
increasing by 18,4% at constant conversion rates. Due to lower volatility in
certain African currencies, this turnover increase translates into 17,3% in
rand terms.
The Group successfully launched its first store in Nigeria in December.
Towards the end of the review period the acquisition of two businesses by
the Group - Food World with 13 branches and Computicket - was finalised.
Their contributions had only a marginal effect on group turnover.
The above financial information has not been reviewed or reported on by the
Shoprite Holdings" auditors. The results for the review period discussed
above will be published on Wednesday, 22 February 2006.
Whitey Basson, CEO, or Carel Goosen, deputy managing director (tel 021 980
4000).
Date issued 10 January 2006
Sponsor Nedbank Capital
Date: 10/01/2006 03:21:37 PM Produced by the JSE SENS Department
