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Reviewed results for the 52 weeks to 3 July 2022
The results, from continuing operations, for the financial year under review are for a 52-week period compared to 53 weeks in the previous financial year. Throughout we are showing the 53 weeks to 4 July 2021 as the comparative period, unless stated otherwise.
A record result in a challenging year
- Sale of merchandise increased by 9.6% to R184.1 billion
- Basic earnings per share increased by 22.9% to 1 046.5 cents (2021: 851.6 cents)
- Adjusted basic headline earnings per share* increased by 22.5% to 1 086.5 cents (2021: 887.3 cents)
- Diluted headline earnings per share increased by 10.0% to 1 048.1 cents (2021: 952.5 cents)
- Full year dividend per share increased by 10.3% to 600 cents (2021: 544 cents)
- Excluding the impact of social unrest closures and re-openings, our core Supermarkets RSA operating segment opened a net number of 117 stores during the year
- The Group created 4 316 new jobs in South Africa during the year
* The adjusted basic headline earnings per share from continuing operations constitutes pro forma financial information in terms of the JSE Limited Listings Requirements, is the responsibility of the Board of Directors of Shoprite Holdings Ltd, has been prepared for illustrative purposes only and may not fairly present the Group’s financial position. For a full appreciation of the pro forma financial information please refer to page 9 of the announcement.
Pieter Engelbrecht, Chief Executive Officer
We are proud of our 2022 financial results especially when considering our high base, the additional week included in our reporting calendar last year and the headwinds as a result of the challenging local and global context.
Our 9.6% increase in Group sales equates to an additional R16.0 billion spent with us on our 53-week 2021 base. On a 52-week basis, our customers spent an additional R19.6 billion with us this year. This growth equates to R6.2 billion in South African market share gains for the period. My heartfelt thanks to our millions of customers for their continued support and to Team Shoprite, our people, for their world class execution and continued dedication to our business.
It is pleasing to see the positive customer momentum established in recent years in our core South African supermarket segment (representing 80.0% of Group sales) has continued, evidenced by sales increasing by 10.1% (12.6% on a 52-week base). Within this segment our Shoprite and Usave supermarket businesses, which together make up 52.8% of our Supermarkets RSA operating segment, increased sales by 7.2%. Despite having two of our large format Checkers Hypers still closed due to the July 2021 social unrest, our Checkers and Checkers Hyper supermarket business, which make up 39.8% of Supermarkets RSA sale of merchandise, increased sales by 9.1%. Our Shoprite and Checkers LiquorShop business, which constitutes 7.2% of the segment’s sales, increased by 44.5%. This is due to strong underlying growth and the fact that the business was closed for less days as a result of Covid-19 regulations this year (2022: 48 days closed) versus last year (2021: 144 days closed).
With regards to our ongoing focus on price and value, the Shoprite and Checkers Xtra Savings rewards programme saved our 24.7 million loyal members a tremendous R9.4 billion this year, up from R5.3 billion last year.
Shoprite Group CEO, Pieter Engelbrecht.
In terms of our focus on accessibility for our customers, our community based Usave supermarket business increased sales by 11.4% and our on-demand one-hour delivery app Checkers Sixty60 continued to innovate and grow its sales despite reporting against an incredible growth trajectory established subsequent to its introduction two years ago. The Group entered into an agreement with RTT Group (Pty) Ltd, the delivery partner for Checkers Sixty60. In terms of this agreement, the RTT Group (Pty) Ltd’s on-demand business was transferred into a new company, Pingo Delivery (Pty) Ltd in which Shoprite Checkers (Pty) Ltd has a 50% shareholding. Pingo Delivery (Pty) Ltd provides us with a critical building block in terms of executing our strategy to own intellectual property in Iast mile logistics whilst providing us with a platform to monetise our expertise in this area.
In recognition of the contribution made by our people we established the Shoprite Employee Trust during the year. Qualifying employees will receive a rand distribution aligned with the final dividend declared to shareholders. We expect distributions from the Shoprite Employee Trust will, over time, make a meaningful difference to the lives of our valued employees whilst also positively impacting customer experience and productivity throughout the business.
We’ve continued with our share buy-back programme and advanced our proposed acquisition of Cambridge Food, Massfresh as well as Masscash Cash and Carry to the Competition Tribunal approval stage. I sincerely hope this transaction can be finalised during the first half of the 2023 financial year to allow us the opportunity to integrate these businesses and their employees into our South African Shoprite supermarkets’ operations. We have much to do in terms of executing our strategy to grow the business in the years ahead, this is just one of our initiatives and we look forward to reporting on our progress on this and our other plans during 2023.