Shoprite Holdings Ltd, one of South Africa’s leading retail giants, has reported robust financial results for the 52 weeks ended July 2, 2023. The company’s performance in a challenging economic environment demonstrates resilience, innovation, and a commitment to delivering value to shareholders and customers.
In a year marked by economic uncertainty and disruptions, Shoprite Holdings Ltd has achieved remarkable financial growth across various key metrics. Here’s a closer look at the numbers:
Metric | 2023 | 2022 | Change |
---|---|---|---|
Sale of merchandise (Rm) | R214,956 | R183,868 | +16.9% |
Trading profit (Rm) | R11,916 | R11,278 | +5.7% |
Operating profit (Rm) | R12,344 | R11,055 | +11.7% |
Profit before income tax (Rm) | R9,132 | R8,332 | +9.6% |
Income tax expense (Rm) | R2,812 | R2,553 | +10.1% |
Profit for the year (Rm) | R6,320 | R5,779 | +9.4% |
Headline earnings per share (cents) | 1,166.2 | 1,063.9 | +9.6% |
Basic earnings per share (cents) | 1,161.4 | 1,055.5 | +10.0% |
Dividend per share (cents) | 663.0 | 600.0 | +10.5% |
Note: All values are in South African Rands (Rm) unless otherwise stated.
The Group’s sale of merchandise reached an impressive R214.956 billion in 2023, a significant increase of 16.9% from the previous year’s R183.868 billion. This robust sales performance reflects Shoprite’s ability to cater to diverse customer needs, even in challenging market conditions.
Earnings per share also saw notable improvements in 2023. Headline earnings per share rose to 1,166.2 cents, marking a 9.6% increase from 2022. Basic earnings per share, on the other hand, saw a 10% increase, reaching 1,161.4 cents. These figures reflect the Group’s focus on profitability and delivering value to its shareholders.
In a move welcomed by investors, the Board of Directors declared a final dividend of 415 cents per ordinary share for 2023. This represents an increase from the 367 cents per share paid in 2022. The total dividend for the year now stands at 663 cents per ordinary share, up from 600 cents in 2022. The increased dividend payout underscores the company’s commitment to providing returns to its shareholders.
The last day to trade cum dividend will be Tuesday, September 26, 2023. Starting from Wednesday, September 27, 2023, all trading of Shoprite Holdings Ltd shares will take place ex dividend. The record date for the dividend is Friday, September 29, 2023. Please note that share certificates may not be dematerialized or rematerialized between September 27 and September 29, 2023, both days inclusive.
The Dividends Tax rate in South Africa is 20%, with a net local dividend amount of 415 cents per share for shareholders exempt from paying Dividends Tax and 332 cents per share for shareholders liable to pay Dividends Tax.
Pieter Engelbrecht, the Chief Executive Officer of Shoprite Holdings Ltd, expressed his thoughts on the Group’s performance in 2023. He emphasized that despite facing unprecedented challenges, the company had achieved record levels of market share, saved customers over R13.5 billion in Xtra Savings, and increased profits and dividends.
Engelbrecht highlighted several key achievements and challenges:
Engelbrecht expressed his pride in the commendable achievements of the Group and extended his gratitude to customers and the nearly 154,000 employees who contribute to Team Shoprite’s success. He emphasized that it is their leadership and collective commitment that made this performance possible, benefiting both shareholders and the wider community.
Shoprite Holdings Ltd’s financial results for 2023 tell a story of resilience and growth. Despite facing challenges like load-shedding and economic uncertainties, the company has delivered strong sales growth, increased earnings, and higher dividends for its shareholders. The commitment to affordability, customer-focused strategies, and a dedicated workforce have been key drivers behind this success.
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