Tue Jan 16 07:02:00 UTC 2007
For the six months to 31 December 2006, the Shoprite Group increased turnover by 14,7% to about R19,1 billion (2006:R16,6 billion).
Management is satisfied with these results which were achieved in an environment of rising food price inflation. For the review period internal inflation rose to 5,6% as against 2,5% in the corresponding period.
The Shoprite brand, which was most affected by a country wide industrial action, grew sales in its existing stores by 4,7% and by 11,6% overall. Shoprite opened a net 6 supermarkets within the country during the review period.
Checkers has experienced strong growth, and reported a sales increase of 10,2% in existing stores and by 16,1% overall. It added a net 3 new stores.
Strong consumer support for the Usave brand in South Africa resulted in a gain of 9 new outlets during the period. Sales growth of 32,8% continue to exceed budget.
The Group's Furniture division maintained sales growth of 14,2% in a market charactarised by intense competition. The swing to cash sales in the business has now stabilised.
The Group's non-RSA operations produced satisfactory results, reporting growth of 29,8% in rand terms. New stores in Angola and Nigeria boosted turnover.
The above financial information has not been reviewed or reported on by the Shoprite Holdings auditors. The results for the review period discussed above will be published on Tuesday, 20 February 2007.
Whitey Basson (CEO) or Carel Goosen, deputy managing director (tel 021 980 4000).
Date issued: 16 January 2007
Sponsor: Nedbank Capital