Strong results with diluted HEPS 519cps (+25.2% y-y). Turnover growth +10.0% y-y, with Checkers chain growing at 11.4% y-y. Shoprite chain lags with growth of 6.8% y-y. Liquor
sales growth +49.8% y-y due to low prior-year base. GP margin unchanged at 24.1%. Expense growth of 9.1% y-y due to additional unrest cost, but the expense to sales ratio still dropped from 20.2% to 20.0%. Operating margin improved from 5.7% to 6.0%. Dividend 233cps (1H21: 191cps) on dividend cover of 2.2x. Cash position of R5.4bn (1H21: R12.0bn) with Gross debt stable at R5.3bn (1H21: R5.5bn). Sharp drop in Creditors (from R28bn to R22bn) negatively impact working capital; due to cut-off of R10.6bn payments.
