Shoprite Holdings Limited · JSE:SHP
Shoprite — FY2025 Earnings Presentation
58 slides from Shoprite's earnings presentation, Sep 2, 2025
Slide 1: 2025 Results Presentation
2025 Results Presentation For the 52 weeks ended 29 June 2025
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
Slide 3: Financial, operational and strategic progress
Financial progress • Group sales value +8.9% to R252.7bn • Gross margin +40bps to 24.3% • Trading profit +16.6% to R15.0bn • Supermarkets RSA trading margin increased to 6.5% • ROE: 26.7% • DHEPS +15.8% Operational progress • Leading sales growth and R8bn market share gains for core Supermarkets RSA
Slide 4: Our Shoprite Purpose
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 2025 Full Year Financial Results
Slide 5: Executing our purpose through people
Executing our purpose through people 8 723 Retail Employer of Choice new jobs created 2024 SAGEA Employment Awards in the year +R1bn. R130m in cumulative Employee Trust payouts in training for by 1 October 2025 unemployed youth Shoprite Holdings 2025 Full Year Financial Results
Slide 6: Proudly South African
Proudly South African No.1 supporter of SA farmers R1.4bn 91% +120% fresh produce sourced of private label products sales growth from SMMEs from local SMMEs locally produced on our ESD programme ESD: Enterprise Supplier Development Shoprite Holdings 2025 Full Year Financial Results
Slide 7: Force for good: Social and environmental
Force for good: Social and environmental 107 Recycled and reused tonnes of produce harvested 72 992 53 PlayPumps from 287 community food supporting water resilience gardens, benefiting 11 039 tonnes within communities across SA, community members of cardboard and plastic waste benefiting +17 000 peo
Slide 8: Pioneering affordability and fighting hunger
Pioneering affordability and fighting hunger Affordability Obsession • 466 products available for R5 or less 8.9m. • 1.8m units from the Shoprite R5 basket subsidised every week meals served from 33 mobile soup kitchens Shampoo and Body Wash innovation: 20 washes from a single R5 sachet R258m. surpl
Slide 9: Multi-year platform investment delivering consistent growth
Multi-year platform investment delivering consistent growth Growth since 5 YEAR GROWTH METRICS FY25 FY20 SALES R252.7bn +R95.8bn ALTERNATIVE REVENUE R3.8bn +R1.5bn MARKET SHARE GAIN* +R8bn +R33bn ANNUAL DIVIDENDS R4bn +R2.2bn STORE NETWORK 3 478 +674 CUSTOMER VISITS 1.2bn +200m * Market share gain:
Slide 10: 100m orders delivered
25.07.2025 100m orders delivered since launch Shoprite Holdings 2025 Full Year Financial Results
Slide 11: Financial Results
Financial Results Anton de Bruyn Chief Financial Officer 11
Slide 12: Framing our 2025 results
Framing our 2025 results M&A • Acquisition of remaining 50% shareholding in Pingo Delivery (Pty) Ltd. (Pingo) Discontinued operations • Sale of the furniture business to Pepkor Holdings Ltd. (Pepkor), excl. Angola and Mozambique • Closure of furniture Mozambique • Buyer identified for furniture Ango
Slide 13: M&A: Acquisition of Pingo Delivery unpacked
M&A: Acquisition of Pingo Delivery (Pty) Ltd unpacked Pingo Delivery (Pty) Ltd FY 2025 income statement classification: Before acquisition After acquisition Equity transaction Equity accounted Consolidated 1 • The Group purchased the remaining 50% shareholding in Pingo, increasing our ownership to 1
Slide 14: Discontinued operations: Furniture
Discontinued operations: Furniture OK Furniture and House & Home Furniture sale Furniture segment results: Transaction detail Statement of comprehensive Change 2025 2024 income % Rm Rm • Sale of assets in all jurisdictions, other than Angola and Mozambique, to Pepkor. Sale of merchandise 4.2 7 531 7
Slide 15: Discontinued operations: Ghana and Malawi
Discontinued operations: Ghana and Malawi Asset transaction Ghana and Malawi financial results Statement of comprehensive Change 2025 2024 In line with the Group’s long-term Accounting treatment income % Rm Rm assessment and country-by-country Sale of merchandise 45.5 2 038 1 401 review of our Non-R
Slide 16: Long-term consolidation to align with core strategy
Long-term consolidation to align with core strategy Mission alignment Capital allocation Sharpen our geographic focus Allocated to our core RSA Supermarkets Evolution of restatements on DHEPS from continuing operations Evolution explained Diluted headline earnings per share (DHEPS) as reported as pa
Slide 17: Financial highlights
Financial highlights Sales Total income Total expenses Trading profit R252.7bn R65.7bn R50.7bn R15.0bn +8.9% +9.4% +7.4% +16.6% +4.6% Like-for-like* 26.0% total income margin 20.1% total expenses margin +40bps trading margin EBITDA DHEPS Adjusted ROIC¹ Final dividend R23.8bn +15.8% 19.4% per share +
Slide 18: Sales unpacked
Sales unpacked Supermarkets RSA Sales growth by brand Restated* Change 2025 2024 Like-for-like Sales % Rm Rm % Change 2025 2024 % Rm Rm Supermarkets RSA 9.5 213 497 195 041 4.8 Supermarkets Non-RSA 6.4 20 568 19 329 3.9 5.9 116 621 110 135 Other operating segments 5.2 18 636 17 718 2.2 Shoprite and
Slide 19: Supermarkets RSA store expansion
Supermarkets RSA store expansion Space growth (m2)* Number of 2025: 5.9% Net Number of Confirmed stores movement stores new stores 2024 Store movement 2025 2025 2026 Shoprite 640 1 43 42 682 41 Usave 461 5 38 33 494 49 Shoprite LiquorShop 477 - 45 45 522 39 1 578 6 126 120 1 698 129 Checkers 283 2 2
Slide 20: Trading profit: total income unpacked
Trading profit: total income unpacked Restated* Restated* Margin margin Change 2025 2024 2025 2024 Continuing operations % Rm Rm % % Gross profit 10.6 61 442 55 539 24.3 23.9 Alternative revenue (4.2) 3 763 3 927 1.5 1.7 Interest revenue (30.4) 218 313 0.1 0.1 Share of profit of equity accounted inv
Slide 21: Alternative revenue contributing to growth
Alternative revenue contributing to growth Restated* Change 2025 2024 % Rm Rm Commissions received 7.5 1 254 1 166 Marketing and media revenue 36.8 647 473 Operating lease income 31.0 596 455 Franchise fees received 4.9 192 183 Sundry revenue excluding subscription income 3.3 942 912 Alternative rev
Slide 22: Trading profit: total expenses unpacked
Trading profit: total expenses unpacked Restated* Change 2025 2024 Continuing operations % Rm Rm Depreciation and amortisation 17.0 8 012 6 845 Employee benefits 10.8 20 268 18 289 Other operating expenses 1.6 22 442 22 095 Total expenses included in trading profit 7.4 50 722 47 229 Expense margin (
Slide 23: Trading profit by segment
Trading profit by segment Restated* Trading trading Restated* margin margin Trading profit unpacked Change 2025 2024 2025 2024 Continuing operations % Rm Rm % % Rbn Supermarkets RSA 15.5 13 904 12 036 6.5 6.2 Supermarkets Non-RSA* 43.4 644 449 3.1 2.3 Other operating segments* 32.3 652 493 3.5 2.8 T
Slide 24: Net finance costs
Net finance costs Restated* Lease liabilities finance charges unpacked: Change 2025 2024 Rbn Lease liabilities finance charges ¹ Continuing operations % Rm Rm Interest received from bank 5.0 +20.7% account balances (30.9) 357 517 4.0 +12.5% Borrowings and other finance +16.3% charges 35.2 (944) (698
Slide 25: Cash and capital allocation
Cash and capital allocation R10.0bn Cash and cash equivalents – beginning of the year Core cash after income tax R22.5bn Core cash calculated as cash generated from operations before working capital requirements, including interest income and dividends received. Debt & financing Debt & financing rel
Slide 26: Growth and maintaining capex
Growth and maintaining capex 2025 2024 79% Growth capex 2025 2024 Rm Rm Rm Rm Growth capex 6 331 5 750 New stores and upgrades 4 868 3 999 Maintaining capex 1 679 2 012 Information technology 1 281 1 594 Total operating capex 8 010 7 762 Supply chain 182 157 Capex as a % of sales 3.2% 3.3%* 6 331 5
Slide 27: Inventories
Inventories INVENTORIES Restated* +4.9%¹ FY2025: R29.7bn Inventories as a % of sales (52 weeks) 2025 2024 FY2024: R28.4bn from continuing operations % % ¹ For purposes of comparability, if the current year inventories balance is adjusted to include inventories classified as held for sale (R1.7 billi
Slide 28: 2026 Guidance considerations
2026 Guidance considerations Sales Supermarkets RSA selling price inflation for July 2025 measured 1.8% (July 2024: 3.0%). Group plans to add 309 new stores which includes 223 stores in Supermarkets RSA. Financial Maintaining a total income margin of c26% with a trading margin target of 6%. indicato
Slide 29: Operational Review
Operational Review Pieter Engelbrecht Chief Executive Officer
Slide 30: Smarter Shoprite
Smarter Shoprite +R20.6bn additional sales Delivering strong operational leverage in FY25 Sales 16.6% R252.7bn +8.9% (like-for-like 4.6%*) 10.6% Gross margin 8.9% 24.3% (+40 bps) Trading margin Sales growth Gross profit Trading profit 5.9% growth growth (+40 bps) Continuing operations * Like-for-lik
Slide 31: Customer, volume and market share growth
Customer, volume and Improved returns and market share growth accelerated earnings growth +1m additional Customer visits visits a week DHEPS 1.2bn +4.6% +15.8% +4.8% Products sold Adjusted ROIC 7.8bn 19.4% +4.8% Excl. IFRS 16 Market share gain Dividend per share +R8bn Supermarkets RSA FY25* 781c +9.
Slide 32: Topline RSA growth continues to outpace peers
Topline RSA growth continues to outpace peers 9.5% Supermarkets RSA sales growth (like-for-like 4.8%*) amidst low internal inflation: ✓ 2.8x the annual pace of Rest of Market sales growth, rounding off six consecutive years of market share gains** ✓ Strong real sales and volume growth as internal in
Slide 33: Lower prices for longer with internal inflation at a 6-year low
Lower prices for longer with internal inflation at a 6-year low Low price leadership • Supermarkets RSA internal food inflation contained to 2.3% (vs FY24: 6.0%)*, below official food inflation 3.7% • Inflation has remained lower for longer than expected: 13.3k items in deflation for the full year •
Slide 34: Portfolio effect: Winning brands with distinct customer propositions
Portfolio effect: Winning brands with distinct customer propositions Africa’s low-price grocery leader RSA store positioning and numbers Lowest prices on trusted grocery brands, without compromising on customer service and product More affluent quality for price-conscious customers in retail and who
Slide 35: Shoprite sales
R116.6bn +R6.5bn +339k Sales (+5.9%) Additional annual sales Additional visits per week Supermarkets RSA (incl. liquor) • Sales increased 5.9% resulting in continued market share gains • 5.7% sales growth and gaining share • Shoprite FY25 internal inflation fell 3.5 ppts to just 1.6% (0.9% in June 2
Slide 36: Checkers sales
R95.7bn +R11.6bn +528k Sales (+13.8%) Additional annual sales Additional visits per week Supermarkets RSA (incl. liquor) Checkers remains the fastest growing premium grocer for the 5th year • Capturing share of wallet from omnichannel offering resulting in record market share gains • Strong gains in
Slide 37: Greenfield opportunities in adjacencies gaining traction
Greenfield opportunities in adjacencies gaining traction Retail adjacencies gaining traction: 66.6% growth in customer visits in FY25 RSA store positioning and numbers More affluent Upmarket pet shop specialist stocking premium 231 food and pet accessories. 310 Specialist outdoor store with exclusiv
Slide 38: Supermarkets Non-RSA, Other operating segments & Furniture
Supermarkets Non-RSA, Other operating segments & Furniture Supermarkets Non-RSA Supermarkets Non-RSA* R20.6bn Trading Profit R 644m Sales • Customer visits +5.4% R 449m • 268 stores (net 14 stores opened) +6.4% • Exiting Ghana and Malawi growth • Trading profit +43.4% FY24 FY25 Other operating segme
Slide 39: Strategy Update
Strategy Update Pieter Engelbrecht Chief Executive Officer 39
Slide 40: 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
Slide 41: Precision retailing enabling a Smarter Shoprite
Precision retailing enabling a Smarter Shoprite ✓ Putting customers first, powered by insights from SA’s biggest retail rewards programme Xtra Savings ✓ +5 000 data points per member across over 33.7m members ✓ Internal advanced analytics capabilities driving competitive edge, enhancing margins and
Slide 42: Continue to unlock alternative revenue
Continue to unlock alternative revenue Enabling financial inclusion by providing low-cost banking, remittances, payments, insurance products and value-added services (VAS). Retail Media Network monetising our omnichannel media assets and connecting advertisers with high-intent Shoprite’s Customer au
Slide 43: South Africa's largest digital commerce platform
South Africa’s largest digital commerce platform An R18.9bn growth engine, built in just over 5 years Sixty60 FY25 sales increased 47.7% to R18.9bn: • No. 1 grocery delivery app in SA with 7m downloads • Equates to 8.9% of total Supermarkets RSA sales First-scaler advantage: • Sixty60 is now live in
Slide 44: Sixty60 order volumes and sales growth
South Africa’s largest digital commerce platform Continued sales growth from a significant base Sixty60 quarterly order volumes Sixty60 annual sales and growth (FY25 incl. delivery fee and subscription income) R 20bn +47.7% R 6.1bn +58.1% R 4.7bn Orders Sales +81.5% R 3.6bn +149.8% R 2.7bn R 0bn FY2
Slide 45: Operational excellence despite exponential growth
Operational excellence despite exponential growth Each year, more kilometres are travelled with better on-time delivery and more products are picked with improved order pick fill accuracy (FY23-FY25) 265m 94.0% >1m products 96.8% kilometres travelled on-time delivery picked every day order pick fill
Slide 46: Sixty60 is a platform business with flywheel effects
is a platform business with flywheel effects • Sixty60 has become the digital front door to the Group’s entire 1st party product ecosystem • Evolution from limited convenience foods app in 2020 to a multi-category ecosystem, delivered same-day nationally • As the platform grows → operational efficie
Slide 47: Platform growth drivers
is a platform business with flywheel effects Platform growth drivers 1 2 Flywheel ✓ Expanding store and banner network ✓ Broader product selection ✓ New users: +26.8% active users FY25 4 3 2025 Full Year Financial Results
Slide 48: Improving efficiencies through network effects
is a platform business with flywheel effects Improving efficiencies through network effects 1 2 Flywheel ✓ High-frequency data from more users, engagement and order growth ✓ Smarter personalisation ✓ Optimised stock levels 4 3 ✓ Better picking and route optimisation ✓ Reduced delivery times ✓ Increa
Slide 49: Unlocking value
is a platform business with flywheel effects Unlocking value 1 2 Flywheel ✓ Improved profitability from lower fixed cost per order ✓ Cross-selling into new adjacencies at zero customer acquisition cost • E.g. Sixty60 General Merchandise sales doubled in FY25 4 3 ✓ New and increasing user activity un
Slide 50: Increasing customer delight and loyalty
is a platform business with flywheel effects Increasing customer delight and loyalty 1 2 Flywheel ✓ 85% retention rate after first order (global average 29%*) ✓ Record levels of Sixty60 brand advocacy ✓ Unlimited free delivery subscription drives stickiness 4 3 ✓ Omnichannel customers are 3.8x more
Slide 51: A sustainable digital advantage: Our competitive moat
A sustainable digital advantage: Our competitive moat New digital platform One digital platform for all customers Last-Mile Integrated customer data with SA’s No. 1 Rewards Programme Logistics Leverage core 2 863 Corporate Store Estate and Operational Muscle retail capabilities and infrastructure 29
Slide 52: A sustainable digital advantage: Future growth drivers
A sustainable digital advantage: Future growth drivers Extend best of Integrated VAS digital into the (value-added services) mainstream and fintech Continuous Target headroom optimisation opportunities ✓ General merchandise ✓ Speciality pet ✓ Health and beauty ✓ Maximise capacity ✓ Picking efficienc
Slide 53: Thank You: Questions
Thank You Questions
Slide 54: Our outlook
Our outlook • Supermarkets RSA delivered pleasing sales growth in July 2025, while containing internal inflation at 1.8% (vs July 2024: 3.0%)* • All banners in our core Supermarkets RSA segment continue to grow ahead of Rest of Market** • Sales growth across our supermarket banners was slightly ahea
Slide 55: Additional Information
Additional Information Anton de Bruyn Chief Financial Officer 55
Slide 56: Financial metrics
Financial metrics 2025 2024 Restated* IFRS 16 Adjusted IFRS 16 Adjusted ROIC impact ROIC ROIC impact ROIC Rm Rm Rm Rm Rm Rm Trading profit 14 951 (2 781) 12 170 12 818 (2 812) 10 006 Effective tax rate 27.4% 27.4% 31.1% 31.1% Trading profit after tax 10 851 (2 018) 8 833 8 835 (1 939) 6 896 Invested
Slide 57: Diluted headline earnings per share (DHEPS)
Diluted headline earnings per share (DHEPS) Restated* Change 2025 2024 % cents cents DHEPS from continuing operations 15.8 1 367.2 1 180.2 Adjusted for the impact of: Shoprite Employee Trust distributions to eligible employees in South Africa and equivalent awards granted by subsidiaries in countrie
Slide 58: Adjusted headline earnings reconciliation
Adjusted headline earnings reconciliation Headline earnings DHEPS* 2025 2025 Rm cents Headline earnings from continuing operations 7 428 1 367.2 Adjusted for the impact of: Shoprite Employee Trust distributions to eligible employees in South Africa and equivalent awards granted by subsidiaries in co