Diluted HEPS (continuing ops) increased by 7.4% y-y to 1 245cps.
Turnover growth of 12.3% y-y, with Checkers up 12.3% y-y,
Shoprite +10.3% y-y, Usave +13.2% y-y, Liquor sales +20.0%
y-y, and Furniture +2.3% y-y. Non-SA sales up 6.1% y-y.
High growth in Other Segments partly due to 73 new franchise
stores, with franchise sales growth +23.8% y-y.
GP margin dropped slightly from 24.1% to 24.0%, due to mix
impact of faster growing Other Operating Segments.
High expense growth of 12.1% y-y, with staff cost up 13.0% y-y.
However, the expense-to-sales ratio was stable at 20.8%.
Trading margin improved by 10bps from 5.5% to 5.6%.
Dividend 712cps (FY23: 663cps) on dividend cover of 1.7x.
High capex spend of R7.8bn with capex-to-sales of 3.2%.
Strong cash position of R8.8bn (FY23: R6.0bn) with gross debt
lower at R6.0bn (FY23: R6.4bn).
Outlook – July sales growth reflect positive volume growth despite
low inflation of 3.0%. FY25 capex of R8.0bn.
Will dispose of Furniture business to Pepkor. This will improve
SHP focus on food retailing, in our view. Will purchase remaining
50% stake in last-mile delivery business Pingo.
