Consumer Research Africa

Shoprite (SHP) FY22 Results Snapshot

Strong results with diluted HEPS 1048cps (+10.0% y-y).
Turnover growth +9.6% y-y (11.9% on 52 weeks basis), with Checkers chain growing at +9.1% y-y and Usave +11.4% y-y. Shoprite chain lags with growth of 6.7% y-y. Liquor sales growth +44.5% y-y due to low prior-year base. Furniture + 0.7% y-y.
GP margin unchanged at 24.5%.
High expense growth of 10.7% y-y due to higher staff cost, unrest cost, and depreciation. The expense to sales ratio increased from 20.3% to 20.5%.
Operating margin drop from 6.1% to 6.0%.
Dividend 600cps (FY21: 544cps) on dividend cover of 1.7x.
Cash position of R5.7bn (FY21: R6.7bn) with Gross debt up at R5.5bn (FY21: R5.3bn).
Established the Shoprite Employee Trust during the year.
Massfresh acquisition not yet approved by Tribunal.