Supermarket giant Shoprite Holdings reported a 18,7 percent increase in trading profit to R3,49billion in the 53 weeks ended June 2010.
The company unveiled its annual financial results in Sandton yesterday.
Shoprite further recorded a 13,6 increase in turnover from R59,3billion to R67,7billion. Diluted headline earnings per share rose 15,6percent.
Its supermarket operation in South Africa grew turnover by 14,6percent while the total market only grew by 9,6percent in the same period.
Shoprite chief executive officer Whitey Basson said the reporting period had been dominated by tumbling food inflation which had brought prices back to where they had been a year ago.
He said the dramatic nature of the drop was best illustrated by the fact that in the first six months of the reporting period internal food inflation averaged 4,2 percent. During the last six months it had fallen to a mere 0,2percent.
"Although positive for consumers, especially those in lower income groups, the low food inflation put increasing pressure on food retailers contending with substantially higher cost inflation. The focus consequently shifted to building turnover based on lower price."
The group grew its store base by adding 87 outlets in South Africa to 1015 and 151 on the continent. It envisage opening 85 new outlets in the new financial year.
Basson said the local supermarket segment - Shoprite, Checkers and Usave - were the best performing area of the business.
These three produced a turnover of R53,4billion compared to R46,6billion on the previous period.
Usave outlets, which are cheaper than Shoprite supermarkets, also enjoyed a 33,5 percent sales and a 50percent return on investment.
The Checkers brand grew 13,6percent, faster than any other supermarket brand in the country.
Shoprite Liquor Shop opened 35 new stores, bringing the total to 83 nationally. Money Market also enjoyed a 46percent growth in money collected and 101percent growth in money transfers. Medi-Rite Pharmacy had 60percent sales increase.
Shoprite reports good profit
Supermarket giant Shoprite Holdings reported a 18,7 percent increase in trading profit to R3,49billion in the 53 weeks ended June 2010.
The company unveiled its annual financial results in Sandton yesterday.
Shoprite further recorded a 13,6 increase in turnover from R59,3billion to R67,7billion. Diluted headline earnings per share rose 15,6percent.
Its supermarket operation in South Africa grew turnover by 14,6percent while the total market only grew by 9,6percent in the same period.
Shoprite chief executive officer Whitey Basson said the reporting period had been dominated by tumbling food inflation which had brought prices back to where they had been a year ago.
He said the dramatic nature of the drop was best illustrated by the fact that in the first six months of the reporting period internal food inflation averaged 4,2 percent. During the last six months it had fallen to a mere 0,2percent.
"Although positive for consumers, especially those in lower income groups, the low food inflation put increasing pressure on food retailers contending with substantially higher cost inflation. The focus consequently shifted to building turnover based on lower price."
The group grew its store base by adding 87 outlets in South Africa to 1015 and 151 on the continent. It envisage opening 85 new outlets in the new financial year.
Basson said the local supermarket segment - Shoprite, Checkers and Usave - were the best performing area of the business.
These three produced a turnover of R53,4billion compared to R46,6billion on the previous period.
Usave outlets, which are cheaper than Shoprite supermarkets, also enjoyed a 33,5 percent sales and a 50percent return on investment.
The Checkers brand grew 13,6percent, faster than any other supermarket brand in the country.
Shoprite Liquor Shop opened 35 new stores, bringing the total to 83 nationally. Money Market also enjoyed a 46percent growth in money collected and 101percent growth in money transfers. Medi-Rite Pharmacy had 60percent sales increase.
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