Consumer Research Africa

Shoprite (SHP) Results Snapshot 1H23

Good results with diluted HEPS 578cps (+10.2% y-y).
Turnover growth +16.8% y-y, with Checkers chain up 16.9% y-y,
Shoprite +14.8% y-y, Usave +17.9% y-y, Liquor sales +35.6% y-y
(low prior-year base), and Furniture + 8.6% y-y.
GP margin drop from 24.1% to 23.5%, to assist customers with
affordability. Also diesel cost impacting supply chain.
High expense growth of 17.8% y-y, partly due to loadshedding
costs. The expense to sales ratio increase from 20.0% to 20.2%.
Trading margin drop from 6.1% to 5.7%.
Dividend 248cps (1H22: 233cps) on dividend cover of 2.3x.
Strong cash position of R8.3bn (1H22: R5.4bn) with Gross debt up
at R6.4bn (1H22: R5.3bn).
Exited DRC, shown as discontinued operations.
Massfresh acquisition effective 2H23. Rebranded as 51 Shoprite
stores, 42 Shoprite LiquorShop and one Usave.
Sales growth in first 6 weeks of 2H23 sustained in Shoprite SA.