Shoprite Holdings Limited · JSE:SHP
Shoprite — H1 2012 Earnings Presentation
13 slides from Shoprite's earnings presentation, 2012
Slide 1: 36
36
Slide 2: Supermarkets RSA
Supermarkets RSA • Supermarkets sales growth 12.3% — An addi=onal R3.5 billion of turnover • Further market share gains — 3.8% ahead of the market (Nielsen category reports for all majors) 37
Slide 3: Supermarkets RSA
Supermarkets RSA • Customer Growth of 3.6% • Basket Growth of 7.6% well ahead of internal infla=on of 4.6% • All 3 supermarket brands performed with double digit sales growth • Shoprite maintained its domina=on of the middle class with 11% sales growth • Checkers supermarkets con=nued to anract more
Slide 4: 22.1m Consumers choose our Supermarkets
22.1m Consumers choose our Supermarkets 2005 2011 Source: Amps 2005-‐2011 Shoprite Group : Shoprite, Checkers, Checkers Hyper, OK Foods, Grocer, Mini Mark & Usave 39
Slide 5: Customer Profile Improvement
Customer Profile Improvement LSM comparison over 5 years % Total Checkers Customers 2006 2011 2006 2011 LSM 1 – 7 LSM 8 – 10 AMPS (Sept 2011) *Including Checkers Hypers 40
Slide 6: Taking formal retail to under-served areas
Taking formal retail to under-‐served areas This is what we work for! 41
Slide 7: Other Operating Segments
Other OperaGng Segments • 29% growth in total money collected • 47% growth in Money Transfers — 1.4 milion new customers in the 6 months despite increased compe==on • 400 new service points added to meet demand • Introduced into 100 furniture outlets • Aggressive expansion with 33 new stores opened
Slide 8: Other Operating Segments
Other OperaGng Segments • 16.7% sales growth from 419 total members • 148 Friendly/7 Eleven members acquired and contributed 8% of sales • 45.4% increase in trading profit • 1 out of 2 =ckets sold are collected in our supermarkets • Fewer large events meant average =cket price and =ckets per purchase
Slide 9: Other Operating Segments
Other OperaGng Segments • 9 new pharmacies opened, total 130 • 25% increase in prescrip=ons (1.3 million in 6 months) • MediRite now procures 98% of goods from Transpharm • Transpharm Cape Town capacity increased to meet demand • Gross margin percentage increased by 1.6% • 24.4% increase in turnover
Slide 10: Supermarkets Non-RSA
Supermarkets Non-‐RSA • Non-‐RSA internal infla=on was stable • R37.7 million benefit passed on to consumers resul=ng from the SADC trade agreement • Exports benefit from weaker Rand • Supply remains challenging and slow – lead =mes e.g. ― Tanzania 113 days ― Nigeria 104 days ― Uganda 84 days • High
Slide 11: Exchange Rates
Exchange Rates Exchange Rates -‐ the Rand weakened against 7 out of 11 non-‐RSA currencies Change in ave. exchange Rand movement Country rate vs Rand against the local Jul–Dec ’10 vs July–Dec ’11 currency Mozambique -‐29.7% ↓ Weakened Mauri=us -‐11.3% ↓ Weakened Madagascar -‐7.2% ↓ Weakened Ang
Slide 12: Supermarkets Non-RSA
Supermarkets Non-‐RSA • Sales Growth 21.2% (16.9% constant currency) – 10 new stores (6 Shoprite, 4 Usave) – Angola, Zambia and Namibia were the star performers – A higher non-‐food par=cipa=on was achieved • Angola: – New DC and wholesale facili=es completed – 3 store extensions in progress – affe
Slide 13: Nigeria: Ikeja City Mall opened in Dec
Nigeria: Ikeja City Mall opened in Dec 48