Shoprite Wide open spaces
Those Shoprite results then, delivered in energised tones by CEO Pieter Engelbrecht, eight months into his tenure in the cavernous surrounds of the impressive new-generation Cilmor DC in the Cape, complete with a phalanx of ceremonial forklifts and their beaming operators. Cut to the chase, though: turnover up +8.4% to R141bn for the year through to June, with trading profit up +11.6% to a hefty R8bn and diluted HEPS slightly ahead of that at +11.9%. The question on everybody’s lips, though, was whither, trading margin? Again, up: from 5.6% last year to 5.76% in the 2017 FY, a strong result, despite the toughest conditions in recent memory, and Shoprite are citing a scientific +0.45% increase in market share, equating to additional sales of R1.5bn. Non-SA supermarkets were again an impressive performer, growing sales +11.7% compared with +8% back here in the Beloved C. Looking ahead, their strategic focus areas in a nutshell: customers first, grow LSM 8-10, private label, more franchise, Africa, strategic expansion from DCs like Cilmor which consolidates stock from 500 different suppliers. For a more detailed view of it all, click here.
Comment: So solid stuff as we’ve come to expect. And that shiny new DC, huh? Nice.