Stop the presses! Shoprite results are in, and to be honest, it’s a bit of a mixed bag: turnover up +3.6% to R150.4bn, and gross profit up +1.8% to R35.3bn. Operating profit was down, unfortunately, by -8.2% to R6.9bn, as non-RSA businesses turned in a trading loss of R265m as a result of forex shortages and currency devaluations, which meant that shoppers elsewhere in Africa were paying a premium for Shoprite’s almost exclusively imported offering. Sales were strong back home, however, growing +7.4% in the final six months of the year and boosting the overall performance. Where to from here? Shoprite will maintain its commitment to growth beyond our borders, while trialling a concept it’s calling ‘precision retailing’, a sharp focus on bridging existing gaps and mitigating externalities. “The year reflects two contrasting halves,” says CEO Pieter Engelbrecht. “However, we ended it very strong in the RSA Supermarket operations, increasing sales momentum, and are now back in business in H2 with improved volumes, visits and spend per visit.” For Ti’s succinct summary of the results, click here.
Comment: As the man has by his own admission not one but two crystal balls, we’re inclined to take him seriously.