South African retailer Shoprite has reported a total revenue of R130.8bn ($7bn) in the initial six months (H1) of the fiscal year 2025 (FY25) – a 9.4% increase from the R119.5bn reported during the corresponding timeframe in FY24.
The company saw sales climb by 9.6% to R128.6bn, with its primary Supermarkets RSA division, encompassing brands such as Shoprite, Usave, Checkers, Checkers Hyper and LiquorShop, accounting for 83.7% of total sales.
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Within this key segment, Supermarkets RSA witnessed a 10.4% rise in sales, with comparable store sales growing by 6.1%.
The number of customer visits rose 4.1%, and the average transaction value also saw an increase of 6.1%.
During the 26 weeks ended 29 December 2024, gross profit margin of Shoprite stood at 23.9% – a slight improvement from the previous year’s 23.6%.
Factors contributing to this growth include enhanced supply chain efficiencies, sustained volume increases, adept promotional strategies and reduced fuel costs.
The company’s trading profit from ongoing operations jumped by 13.5%, reaching R7.3bn, which pushed the group’s trading margin to 5.7%, slightly up from the restated figure of 5.5% for the first half of fiscal 2024.
Its earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 16.7% to R11.7bn, compared to the restated amount of R10bn in the same period of the previous year.
Shoprite registered diluted headline earnings per share of 659.9 cents – 9.9% growth from 600.3 cents in H1 FY24.
During this six-month phase, Shoprite expanded its operational footprint with 205 new stores, bringing its total number of continuing operations stores to 3,417.
The company’s capital expenditure related to continuing operations represented 3.2% of total sales for the period when considering both ongoing and discontinued operations.
Under its authorised share repurchase programme, Shoprite bought back 3.4 million shares at a cost of R997m.
Shoprite chief executive officer Pieter Engelbrecht stated: “The growth in sales achieved over this important period is the result of detailed data-led planning and execution, evidenced by our three core South African trading banners and their adjacent new formats collectively adding R10.2bn in sales to our base for the six months.
“We are very proud of this performance, which like the many years now that have preceded it, and we trust, the ones that will follow, is a result of ongoing execution of a multi-year strategy, designed to grow our business and sustain our lead.”
In the first month of H2 FY25, sales growth within the Supermarkets RSA segment continued to outpace reported H1 figures.
Internal selling price inflation for Supermarkets RSA was recorded at 3.1% for January, down from January 2024’s rate of 6.3%.
Considering base effects, sales growth during the comparable second half of last year was documented at 10.1%.
