Consumer Research Africa

Shoprite (SHP) FY23 – Results Snapshot

Diluted HEPS from continuing operations up 9.7% y-y.
Strong turnover growth of 16.9% y-y, with Checkers chain up 18.0% y-y, Shoprite +15.7% y-y, Usave +14.6% y-y, Liquor sales +30.8% y-y, and Furniture + 5.1% y-y.
GP margin drop from 24.5% to 24.1%, due to price investment to assist customers with affordability.
High expense growth of 18.6% y-y, partly due to loadshedding costs (R1.3bn spent on diesel). The expense to sales ratio increased from 20.5% to 20.8%.
Trading margin dropped from 6.1% to 5.5%.
Dividend 663cps (FY22: 600cps) on dividend cover of 1.7x.
Strong cash position of R6.0bn (FY22: R5.7bn) with Gross debt up at R6.4bn (FY22: R5.5bn).
Massfresh acquisition effective 2H23. Shoprite and Usave sales growth excluding 52 acquired stores +12.9% y-y (15.6% incl.).
Sales growth in first 6 weeks of FY24 in SA lower than FY23, but still double-digit as inflation slowed to 8.6%.