Shoprite Holdings Limited · JSE:SHP

Shoprite — FY2026 Earnings Presentation

46 slides from Shoprite's earnings presentation, Sep 1, 2026

  1. Slide 1: 2026 Full Year Results Presentation

    2026 Full Year Results Presentation For the 52 weeks ended 28 June 2026

  2. Slide 2: Opening Comments

    Opening Comments 01 Pieter Engelbrecht Financial Results 02 Anton de Bruyn Operational Review and Strategy Update 03 Pieter Engelbrecht 04 Questions

  3. Slide 3: Winning through customer focus and relentless execution

    Winning through customer focus and relentless execution OPERATIONAL PROGRESS • Momentum continued with 1.3bn customer visits in the year, • Strong cost discipline, shrinkage and waste management an additional 1.1m per week offset low inflation environment • Record RSA market share achieved: R7.5bn i

  4. Slide 4: Uplifting lives every day

    Our Shoprite Purpose Uplifting lives every day by pioneering access to the most affordable goods and services, creating economic opportunity and protecting our planet Shoprite Holdings Limited 2026 Full Year Financial Results Presentation 4

  5. Slide 5: Proud of Team Shoprite

    Proud of Team Shoprite Retail R1.3bn Employer of Choice in cumulative Employee Trust payouts by October 2026 5 491 R1bn+ spent on employee new direct jobs training and 2024 - 2026 Top Employers Institute created in the year 2024 - 2025 SAGEA Employment Awards development in FY2026 2021 - 2025 GradSt

  6. Slide 6: Supporting South African enterprise

    Supporting South African enterprise No.1 supporter of SA farmers +91% R1.7bn 88% sales growth from local SMMEs on our fresh produce sourced of private label products ESD programme from local SMMEs locally produced ESD: Enterprise Supplier Development Shoprite Holdings Limited 2026 Full Year Financia

  7. Slide 7: Force for Good: Social and Environmental

    Force for Good: Social and Environmental 8.0% of our electricity is sourced from renewables, with 173.7 million kWh Recycled and reused generated from solar PV; enough to power 31 700 homes 83 623 110m tonnes of cardboard and plastic waste R5 products sold FY2026 (R5 = $0.30) R5 products include: 60

  8. Slide 8: Financial Results

    Financial Results Anton de Bruyn Chief Financial Officer

  9. Slide 9: Financial highlights

    Financial highlights Sales Total income Total expenses Trading profit R270.8bn R70.7bn R54.5bn R16.2bn +7.2% +7.8% +7.6% +8.4% +2.7% Like-for-like* 26.1% total income margin 20.1% total expense margin 6.0% trading margin Final dividend EBITDA DHEPS Adjusted ROIC¹ per share R25.8bn +12.2% 19.8% +14.1

  10. Slide 10: Sales unpacked

    Sales unpacked Supermarkets RSA Change 2026 2025 Like-for-like Sales growth by brand Sales % Rm Rm % Supermarkets RSA 7.1 228 742 213 497 2.0 Change 2026 2025 Supermarkets Non-RSA 11.0 22 834 20 568 8.6 % Rm Rm Other operating segments 3.0 19 199 18 636 4.3 4.3 121 629 116 621 Total consolidated con

  11. Slide 11: Supermarkets RSA store expansion

    Supermarkets RSA store expansion Space growth (m 2)* Number of 2026: 6.1% Number of Confirmed stores Net stores new stores 2025 Store movement movement 2026 2027 682 9 41 32 714 29 Shoprite Usave 494 6 57 51 545 26 Shoprite LiquorShop 521 5 58 53 574 77 1 697 20 156 136 1 833 132 Checkers 312 - 30 3

  12. Slide 12: Total income unpacked

    Total income unpacked Restated* Restated* Margin margin Change 2026 2025 2026 2025 Continuing operations % Rm Rm % % Gross profit 8.1 66 447 61 442 24.5 24.3 Alternative revenue 3.4 3 792 3 669 1.4 1.5 Interest revenue (16.1) 183 218 0.1 0.1 Share of profit of equity accounted investments (2.4) 244

  13. Slide 13: Gross profit: segmental view

    Gross profit: segmental view Gross Gross margin margin Change 2026 2025 2026 2025 Continuing operations % Rm Rm % % Supermarkets RSA 7.8 59 591 55 303 26.1 25.9 Supermarkets Non-RSA 8.9 4 689 4 305 20.5 20.9 Other operating segments 11.3 2 167 1 947 11.3 10.4 Total continuing operating segments 7.9

  14. Slide 14: Total expenses unpacked

    Total expenses unpacked Restated* Change 2026 2025 Continuing operations % Rm Rm Depreciation and amortisation 7.9 8 622 7 988 Employee benefits 7.3 21 738 20 266 Other operating expenses ¹ 7.7 24 144 22 415 Total expenses included in trading profit 7.6 54 504 50 669 Expense margin (%) 20.1 20.1 Exp

  15. Slide 15: Trading profit by segment

    Trading profit by segment Restated* Trading trading Trading profit unpacked Restated* margin margin Change 2026 2025 2026 2025 6.0% 5.9% Trad ing margin Continuing operations % Rm Rm % % Rbn Trad ing margin 18.0 Supermarkets RSA 7.9 15 002 13 904 6.6 6.5 16.0 14.0 Supermarkets Non-RSA 13.4 684 603 3

  16. Slide 16: Net finance costs

    Net finance costs Change 2026 2025 Lease liabilities finance charges unpacked: Continuing operations % Rm Rm Rbn Lease liabilities finance charges ¹ Interest received from bank account balances 2.8 367 357 5.0 +10.7% Borrowings and other +20.7% finance charges (20.9) (747) (944) 4.0 +12.5% Lease lia

  17. Slide 17: Cash and capital allocation

    Cash and capital allocation Cash and cash equivalents – beginning of the period R9.3bn Core cash from operations calculated as cash generated from operations before working capital requirements, including interest income and dividends received, after income tax paid. Core cash from operations R24.2b

  18. Slide 18: Growth and maintaining capex

    Growth and maintaining capex 2026 2025 2026 2025 81% Growth capex Rm Rm Rm Rm Growth capex 5 509 6 331 New stores and upgrades 4 175 4 868 Maintaining capex 1 319 1 679 Information technology 1 160 1 281 Total operating capex 6 828 8 010 Supply chain 174 182 Capex as a % of sales 2.5% 3.2% 5 509 6 3

  19. Slide 19: Inventories

    Inventories Inventories as a % of sales (52 weeks) 2026 2025 from continuing operations % % INVENTORIES 2026: R31.7bn Supermarkets RSA 12.0 12.1 +6.6% 2025: R29.7bn Supermarkets Non-RSA 13.1 13.1 Other operating segments 6.7 6.9 SUPERMARKETS RSA R27.4bn Total continuing operations 11.7 11.8 (2025: R

  20. Slide 20: Disciplined investment driving sustainable returns

    Disciplined investment driving sustainable returns Investing for growth Continued returns growth Returning value to shareholders R34.8bn invested over 5 years Adjusted ROIC exceeds WACC by 8.3% Dividend cover: 1.75 times DHEPS (continuing operations) Rbn Rbn 2.9% 3.1% 3.3% 3.2% 2.5% 10 3.5% 21% 19.8

  21. Slide 21: 2027 Guidance considerations

    2027 Guidance considerations FY2027 will include a 53rd trading week as the Group reports on a Julian calendar basis. Calendar impact The last 53-week financial year was FY2021 (53 weeks ended 4 July 2021). Group plans to add 254 new stores which includes 211 stores in Supermarkets RSA, seven stores

  22. Slide 22: Operational Review

    Operational Review Pieter Engelbrecht Chief Executive Officer

  23. Slide 23: Smarter Shoprite: Resilient performance despite low price inflation

    Smarter Shoprite: Resilient performance despite low price inflation Group sales Gross margin Trading margin R270.8bn 24.5% 6.0% +7.2% (like-for-like 2.7%*) +20bps +10bps Achieved positive operating leverage Shoprite Group sales +7.2% to R270.8bn, adding R18.1bn 8.4% 8.1% • Sustained multi-year inves

  24. Slide 24: Supermarkets RSA 7.1% sales growth continues to outpace peers

    Supermarkets RSA 7.1% sales growth continues to outpace peers More customers Higher volumes Record market share 1.1bn 8.2bn +1.1ppts customer visits (+5.3%) items sold (+5.1%) market share (+R7.5bn)* Continued sales growth outperformance vs peers Supermarkets RSA achieved sales growth of 7.1%, addin

  25. Slide 25: Successfully navigated the 7-year price inflation low

    Successfully navigated the 7-year price inflation low • Supermarkets RSA internal inflation contained to just 0.8% (FY2025: 2.3%)* remaining well below official food inflation of 3. 9% • H2 internal inflation remained muted at just 0.8% despite fuel price increases from April 2026 • Lower prices for

  26. Slide 26: Data advantage and efficiencies at scale driving outperformance

    Data advantage and efficiencies at scale driving sustained outperformance and better margins Supply chain More value for efficiencies customers Improved gross margin R18.3bn instant cash savings (+10.7%) 38.5% 26.1% record promo contribution (+20bps) (+2.1 ppts) Supermarkets RSA Rated No.1 Continued

  27. Slide 27: Shoprite lowered prices for customers while sustaining sales growth

    Shoprite lowered prices for customers while sustaining sales growth Sales increased 4.3% to R121.6bn, adding R5.0bn despite overall price deflation • Growth driven by higher customer visits and volumes, not price • Remain committed to affordability with ongoing subsidies in R5 meals, R5 bread and R5

  28. Slide 28: Checkers surpassed R100bn in sales

    Checkers surpassed R100bn in sales, redefining convenience and innovation Sales increased 10.0% to R105.2bn, adding R9.5bn in sales • Strong customer momentum with visits increasing 7.9% (534k additional visits a week) Industry-leading sales growth • Growing 5x ahead of Rest of Market* • Checkers re

  29. Slide 29: Sixty60 South Africa's largest digital commerce platform

    Sixty60 South Africa’s largest digital commerce platform by revenue Total Sixty60 sales increased 34.7% to R25.5bn, adding a record R6.6bn in sales • Equates to 11.1% of Supermarkets RSA sales • No. 1 grocery delivery app in SA Sixty60 annual sales and growth ) • Live in 997 stores nationwide (+303

  30. Slide 30: Supermarkets Non-RSA and Other operating segments

    Supermarkets Non-RSA and Other operating segments Supermarkets Non-RSA Sales +11.0% to R22.8bn, reflecting an improved trading performance • Operational improvements across consolidated portfolio • Zambia leading sales growth at +27.4%, assisted by better energy availability • 276 stores (net 8 stor

  31. Slide 31: Strategy Update

    Strategy Update Pieter Engelbrecht Chief Executive Officer

  32. Slide 32: Strategic priorities for long-term growth

    Strategic priorities for long-term growth A Smarter Target headroom Winning in the Shoprite opportunities long term 1. A TRULY 4. TRUSTED, 7. UNLOCK CUSTOMER- PROFITABLE ALTERNATIVE FIRST CULTURE PRIVATE LABELS INCOME 2. FUTURE-FIT 5. GROW SHARE IN 8. FORCE CHANNELS AND PREMIUM AND FOR GOOD TALENT F

  33. Slide 33: Headroom in premium and fresh: A decade of premiumisation

    Headroom in premium and fresh: A decade of premiumisation Democratising premium food, Checkers has emerged as South Africa’s strongest brand South Africa’s strongest brand, 2025 and 2026 Better store experience Checkers RSA annual sales 194 remodelled FreshX increased 2.8x over 10 years stores impro

  34. Slide 34: Embracing AI for a Smarter Shoprite

    Embracing AI for a Smarter Shoprite Turning data advantage into simpler operations and personalised experiences • Multi-year digital transformation journey and core retail system provide single source of truth, setting the foundation for AI a cceleration • Scale of our customer and transactional dat

  35. Slide 35: Sixty60 personalised shopping assistant

    Sixty60 personalised shopping assistant Pixie Smart Basket • Personalised ‘Tinder for groceries’ product recommendations • 98% of Xtra Savings Plus subscribers used Pixie in the first 90 days • Rolled out to all customers in July 2026 • Users showing positive adoption, larger baskets and faster shop

  36. Slide 36: Sixty60 A sustainable digital advantage

    Sixty60 A sustainable digital advantage For our customers: For our business: An everyday super app A platform business with flywheel effects • Offer: 50k+ products across grocery and widening range of • High-frequency customer base: drives engagement and everyday categories lowers the cost of entry

  37. Slide 37: Extending our digital advantage

    Extending our digital advantage One platform enables faster, profitable expansion across customer needs Premium pet care Health and beauty • Unlocking headroom in omnichannel Health and Extending the best of digital to • The new family member: Petcare market in Beauty retail South Africa expected to

  38. Slide 38: Supply chain investment supporting growth ambition

    Winning in the long term: Supply chain investment supporting growth ambition • Prioritising on-shelf availability to meet growing omnichannel demand and requirements of +223 (+211 in Supermarkets RSA) new corporate stores planned in FY2027 • Consolidated shipments from central distribution nodes to

  39. Slide 39: Our Connected Retail Platform

    Our Connected Retail Platform One digital platform for all customers Alternative Integrated Customer Data Last-Mile Revenue & Logistics Payments 3 137 Corporate Store Estate and Operational Muscle Supply Chain, incl. 29 DCs and Logistics Network ~155k products Buying power, international (1st party,

  40. Slide 40: Thank you

    Thank you

  41. Slide 41: Extending our platform: M&A update

    Extending our platform: M&A update Focused acquisitions of scalable, asset-light businesses that can leverage our platform advantage Targeting headroom in premium coffee and Extending our reach in informal market convenience food • Largest speciality coffee chain offering in South Africa with • Init

  42. Slide 42: Outlook: FY2027

    Outlook: FY2027 • July growth: Group sales +7.7% and Supermarkets RSA sales +8.3%, which remains ahead of the Rest of Market* • RSA Internal selling price inflation for July 2026 remains muted at 0.6% • Q4 2026 fuel price shocks not yet reflecting in internal food inflation, although increased infla

  43. Slide 43: Additional Information

    Additional Information Anton de Bruyn Chief Financial Officer

  44. Slide 44: Financial metrics

    Financial metrics 2026 Rm 14.8% 16.9% 15.0% 15.4% 19.4% 19.8% IFRS 16 Adjusted 50,000 50 000 25.0% ROIC impact ROIC Rm Rm Rm 45,000 45 000 20.0% Trading profit 16 162 (3 157) 13 005 40,000 40 000 Effective tax rate 26.3% 26.3% 15.0% Trading profit after tax 11 909 (2 326) 9 583 35 000 35,000 48,315

  45. Slide 45: Diluted headline earnings per share (DHEPS)

    Diluted headline earnings per share (DHEPS) Restated* Change 2026 2025 % cents cents DHEPS from continuing operations 12.2 1 527.4 1 361.0 Adjusted for the impact of: Shoprite Employee Trust distributions to eligible employees in South Africa and equivalent awards granted by subsidiaries in countrie

  46. Slide 46: Adjusted headline earnings reconciliation

    Adjusted headline earnings reconciliation Headline earnings DHEPS* 2026 2026 Rm cents Headline earnings from continuing operations 8 287 1 527.4 Adjusted for the impact of: Shoprite Employee Trust distributions to eligible employees in South Africa and equivalent awards granted by subsidiaries in co

Shoprite Holdings — FY2026 Earnings Presentation on 6ix