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HomeCompany NewsShoprite half-year profit rises more than 10%, raises dividends payout

Shoprite half-year profit rises more than 10%, raises dividends payout

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Shoprite, South Africa’s biggest supermarket group, posted a 10.2 percent rise in half-year earnings on Tuesday, as both cash-strapped shoppers and upmarket consumers went after Black Friday and holiday deals.

The company’s dual discount and upmarket grocery model tends to shield it better than rivals against inflationary pressures as it targets millions of South Africans reliant on government grants as well as affluent shoppers with much bigger budgets.

The retailer, with over 2,100 stores across Africa, said headline earnings per share rose to 581.3 cents in the six months to Jan. 1, up from 527.4 cents in the prior year.

Sales rose by 16.8 percent to 106.3 billion rand ($5.83 billion), supported by double-digit growth of its South African supermarkets business.

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However, Chief Executive Pieter Engelbrecht said the retailer was disappointed that as a result of spending 560 million rand to fuel diesel generators to deal with rolling power cuts, its profit level was not satisfactory.

“We are not reporting the level of profit and dividend growth normally associated with such a notable achievement in terms of sales growth,” he said.

The retailer declared an interim dividend of 248 cents per share, still higher than the 233 cents paid in the prior year.

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