By Nqobile Dludla.
Photo Credit: Shoprite.
South African retailer Shoprite Holdings said on Wednesday it expects annual headline earnings to rise by as much as 14.7%, supported by steady sales growth and expansion in its core grocery business.
Africa’s largest supermarket group said sales of merchandise from continuing operations for the 52 weeks ended June 28 increased 7.2% to about 270.8 billion rand ($16.7 billion) from 252.7 billion rand a year earlier.
Shoprite said it expects headline earnings per share (HEPS) from continuing operations of 14.98 rand to 15.66 rand, up 9.7% to 14.7% from the previous year’s restated 13.65 rand.
Diluted HEPS are expected to rise by the same percentage range.
At 0836 GMT, Shoprite shares were up 5.19%.
The core Supermarkets South Africa division, which accounts for 84.5% of group sales, increased sales by 7.1% to 213.5 billion rand.
Like-for-like sales rose 2%, while internal selling price inflation remained subdued at 0.8%, below South Africa’s food and non-alcoholic beverages inflation rate of 3.9%.
Outside South Africa, the group’s supermarket operations increased sales by 11% in rand terms and 7.1% on a constant-currency basis.