Shoprite Holdings Limited · JSE:SHP

Shoprite — H1 2026 Earnings Presentation

43 slides from Shoprite's earnings presentation, Mar 3, 2026

  1. Slide 1: 2026 Interim Results Presentation

    2026 Interim Results Presentation For the 26 weeks ended 28 December 2025

  2. Slide 2: H1 Financial, Operational and Strategic progress

    H1 Financial progress 2026 Interim Financial Results • Group sales +7.2% to R136.8bn, adding R9.2bn in sales • Trading profit +5.9% to R7.7bn • Supermarkets RSA trading margin at 6.2% • Adjusted ROIC increased to 19.5% • DHEPS: +7.9% to 708.9 cents • Dividend per share: +7.7% H1 Operational progress

  3. Slide 3: Our Shoprite Purpose: Uplifting lives every day

    2026 Interim Financial Results Our Shoprite Purpose Uplifting lives every day by pioneering access to the most affordable goods and services, creating economic opportunity and protecting our planet

  4. Slide 4: Agenda

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

  5. Slide 5: Financial Results

    Financial Results Anton de Bruyn Chief Financial Officer

  6. Slide 6: Framing H1 2026

    Framing H1 2026 2026 Interim Financial Results Reminder - Pingo Delivery (Pty) Ltd • Acquisition of remaining 50% shareholding in Pingo Delivery (Pty) Ltd (Pingo) in the prior period Included in discontinued operations • Sale of furniture business to Pepkor Holdings Ltd (Pepkor) in the prior period,

  7. Slide 7: Financial highlights

    Financial highlights 2026 Interim Financial Results Sales Total income Total expenses Trading profit R136.8bn R34.8bn R27.1bn R7.7bn +7.2% +6.5% +6.6% +5.9% +2.7% Like-for-like* 25.4% total income margin 19.8% total expenses margin 5.7% trading margin EBITDA DHEPS Adjusted ROIC¹ Dividend per share R

  8. Slide 8: Sales unpacked

    Sales unpacked 2026 Interim Financial Results Supermarkets RSA Restated* Sales growth by brand 26 weeks 26 weeks Change 28 Dec '25 29 Dec '24 Like-for-like 26 weeks 26 weeks Sales % Rm Rm % Change 28 Dec ‘25 29 Dec ‘24 % Rm Rm Supermarkets RSA 7.1 115 326 107 670 1.9 Supermarkets Non-RSA 12.1 11 541

  9. Slide 9: Supermarkets RSA store expansion

    Supermarkets RSA store expansion 2026 Interim Financial Results Space growth (m 2)* Number of Last 12 months: 7.3% Number of Confirmed stores Net stores new stores Dec '24 Store movement movement Dec '25 Jun '26 661 4 54 50 711 20 Shoprite 479 6 48 42 521 40 Usave Shoprite LiquorShop 506 3 44 41 547

  10. Slide 10: Total income unpacked

    Total income unpacked 2026 Interim Financial Results Restated* Restated* Margin margin 26 weeks 26 weeks 26 weeks 26 weeks Change 28 Dec '25 29 Dec '24 28 Dec '25 29 Dec '24 Continuing operations % Rm Rm % % Gross profit 7.1 32 617 30 456 23.8 23.9 Alternative revenue (2.1) 1 954 1 995 1.4 1.6 Inter

  11. Slide 11: Gross profit: segmental view

    Gross profit: segmental view 2026 Interim Financial Results Restated* Restated* Gross gross 26 weeks 26 weeks margin margin Change 28 Dec '25 29 Dec '24 28 Dec '25 29 Dec '24 Continuing operations % Rm Rm % % Supermarkets RSA 6.5 29 218 27 431 25.3 25.5 Supermarkets Non-RSA* 9.4 2 301 2 104 19.9 20.

  12. Slide 12: Alternative revenue

    Alternative revenue 2026 Interim Financial Results Restated* 26 weeks 26 weeks Change 28 Dec '25 29 Dec '24 Continuing operations % Rm Rm Commissions received 9.2 676 619 Marketing, media and customer insights revenue 15.6 593 513 Operating lease income 1.7 294 289 Franchise fees received (2.0) 97 9

  13. Slide 13: Total expenses unpacked

    Total expenses unpacked 2026 Interim Financial Results Restated* 26 weeks 26 weeks Change 28 Dec '25 29 Dec '24 Continuing operations % Rm Rm Depreciation and amortisation 7.9 4 183 3 876 Employee benefits 8.6 10 801 9 943 Other operating expenses 4.5 12 082 11 564 Total expenses included in trading

  14. Slide 14: Trading profit by segment

    Trading profit by segment 2026 Interim Financial Results Restated* Restated* Trading trading 26 weeks 26 weeks margin margin Change 28 Dec '25 29 Dec '24 28 Dec '25 29 Dec '24 Continuing operations % Rm Rm % % Supermarkets RSA 7.1 7 192 6 718 6.2 6.2 Supermarkets Non-RSA* (17.4) 303 367 2.6 3.6 Othe

  15. Slide 15: Net finance costs

    Net finance costs 2026 Interim Financial Results Restated* Lease liabilities finance charges unpacked: 26 weeks 26 weeks Change 28 Dec '25 29 Dec '24 Rbn Lease liabilities finance charges ¹ Continuing operations % Rm Rm 3.0 Interest received from bank +17.2% account balances (7.0) 185 199 +19.7%* 2.

  16. Slide 16: Cash and capital allocation

    Cash and capital allocation 2026 Interim Financial Results Cash and cash equivalents – beginning of the period R9.3bn Core cash from operations calculated as cash generated from operations before Core cash from operations R13.3bn working capital requirements, including interest income and dividends

  17. Slide 17: Growth and maintaining capex

    Growth and maintaining capex 2026 Interim Financial Results H1 2026 H1 2025 H1 2026 H1 2025 82% Growth capex Rm Rm Rm Rm Growth capex 3 216 3 326 New stores and upgrades 2 312 2 676 Maintaining capex 715 845 Information technology 580 573 Total operating capex 3 931 4 171 Supply chain 324 77 * 3 216

  18. Slide 18: Inventories

    Inventories 2026 Interim Financial Results Restated* INVENTORIES Inventories as a % of sales (52 weeks) H1 2026 H1 2025 from continuing operations % % +3.3%¹ H1 2026: R33.7bn H1 2025: R32.6bn Supermarkets RSA 13.2 13.7 ¹ For purposes of comparability, if the H1 2025 inventories balance is adjusted t

  19. Slide 19: 2026 Guidance considerations

    2026 Guidance considerations 2026 Interim Financial Results Sales Supermarkets RSA selling price inflation for January 2026 measured 0.7% (January 2025: 3.1%), expect low single-digit selling price inflation to be sustained for the remainder of the year. Group plans to add 123 new stores within our

  20. Slide 20: Operational Review

    Operational Review Pieter Engelbrecht Chief Executive Officer

  21. Slide 21: Stronger Shoprite: Industry-leading performance

    Stronger Shoprite: Industry-leading performance 2026 Interim Financial Results R9.2bn additional sales Sales Gross profit Trading profit R136.8bn +7.1% +5.9% +7.2% (like-for-like 2.7%*) Gross margin: 23.8% Trading margin: 5.7% EBITDA Capex Inventories R12.4bn R7.8bn >98.0% +6.7% 12 months to Dec ‘25

  22. Slide 22: More customers, higher volumes, continued share gains

    More customers, higher volumes, continued share gains 2026 Interim Financial Results Supermarkets RSA 7.1% sales growth despite declining internal inflation ✓ Sales momentum driven by more customers and more products, not higher prices ✓ Gross and trading margin intact despite increasing promotional

  23. Slide 23: Sales growth remains 2.3x ahead of Rest of Market

    Sales growth remains 2.3x ahead of Rest of Market 2026 Interim Financial Results Supermarkets RSA: Brand portfolio captured end-to-end share from value to premium segments Continued sales growth ahead of Rest of Market Brand portfolio outperforming peers Indexed 2.3x sales Sales growth vs Indexed gr

  24. Slide 24: Record Black Friday and Festive period

    Record Black Friday and Festive period 2026 Interim Financial Results 2026 Interim Financial Results ✓ Supermarkets RSA delivered strong festive period sales with increased promotional intensity and strong marketing execution ✓ Record market share, with sales growth outperforming the Rest of Market

  25. Slide 25: Consumers win amidst deflation dilemma

    Consumers win amidst deflation dilemma 2026 Interim Financial Results Topline growth moderated with internal inflation at 7-year low as cost relief passed on to customers • Supermarkets RSA internal selling price inflation at just 0.7% (H1 2025: 1.9%) vs 4.7% Stats SA official food inflation • Inter

  26. Slide 26: Building long-term price trust with consumers

    Building long-term price trust with consumers 2026 Interim Financial Results • A record 14.4k items cheaper in December 2025 than in December 2024 • Over R1bn in price relief passed on to customers in H1, particularly for most price-sensitive customers in Shoprite and Usave • Checkers and Checkers H

  27. Slide 27: Shoprite and Usave: H1 sales growth of 5.1% to R62.2bn

    H1 sales growth of 5.1% to R62.2bn, adding R3.0bn in sales 2026 Interim Financial Results • Gained market share and increased customer visits by 4.8%, equating to more than 670k additional visits every week • Resilient operational performance despite deflation in over-indexed categories (e.g. commod

  28. Slide 28: Checkers: industry-leading H1 sales growth of 8.9%

    Industry-leading H1 sales growth of 8.9% to R52.2bn, adding R4.3bn in sales 2026 Interim Financial Results • Checkers remains the fastest growing premium grocer with uninterrupted market share gains • Value combined with convenience is driving record customer loyalty: 475k additional visits every we

  29. Slide 29: Supermarkets Non-RSA and Other operating segments

    2026 Interim Financial Results Supermarkets Non-RSA* Other operating segments* Sales growth +12.1% to R11.5bn Sales +3.5% to R9.9bn • 272 stores (net 15 stores opened) • 636 stores (net 4 stores closed) • Mixed operational performance in challenging environment • Trading profit -1.6% on softer franc

  30. Slide 30: Affordability without compromise

    Affordability without compromise 2026 Interim Financial Results • Supermarkets RSA sales contribution from promotions increased by 2.1ppts to 40.0% • Strong promo volume lift of 12.2% driven by increased deal-seeking behaviour across customer segments R9.7bn No.1 9.5m 55.6m in instant Xtra Savings i

  31. Slide 31: Strategy Update

    Strategy Update Pieter Engelbrecht Chief Executive Officer

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

    Strategic priorities remain unchanged for long-term growth 2026 Interim Financial Results 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.

  33. Slide 33: A Smarter Shoprite: more data and better decisions

    A Smarter Shoprite: more data and better decisions 2026 Interim Financial Results We believe our customer data will provide a structural advantage in the era of AI ✓ Internal strategic analytics capabilities capitalising on advances in AI using various models ✓ Deployed across pricing, promotions an

  34. Slide 34: Targeting headroom in high-growth grocery adjacencies

    Targeting headroom in high-growth grocery adjacencies 2026 Interim Financial Results • Sales growth of 70.9% for adjacent businesses delivering incremental customer spend at higher margins • Establishing credible and scalable propositions in supermarket adjacent categories informed by data • Petshop

  35. Slide 35: Market leader in digital commerce, scaling 2x in two years

    Market leader in digital commerce, scaling 2x in two years 2026 Interim Financial Results Sixty60 H1 sales +34.8% to R11.9bn • Equates to 10.3% of total Supermarkets RSA sales • Sixty60 is available in 894 stores nationwide Sixty60 order volumes by half year • No. 1 grocery delivery app in SA • 20.1

  36. Slide 36: One platform, more categories, bigger baskets

    One platform, more categories, bigger baskets 2026 Interim Financial Results • Sixty60 is the single consumer platform to enable 1-hour delivery for all of the Group’s corporate banners • Grocery-led super app with every day utility: high scale and high frequency customer base • Improving platform e

  37. Slide 37: A sustainable omnichannel advantage: Our competitive moat

    A sustainable omnichannel advantage: Our competitive moat 2026 Interim Financial Results One digital platform for all customers Alternative Integrated Customer Data Last-Mile Revenue & Logistics Payments 3 041 Corporate Store Estate and Operational Muscle 29 Distribution Centres and Logistics Networ

  38. Slide 38: Thank you

    Thank you

  39. Slide 39: Outlook

    Outlook • Supermarkets RSA sales for January increased by 7.5% • Continued Supermarkets RSA market share gains driven by higher customer visits • Internal selling price inflation seems to be nearing the bottom of the cycle • Up from -0.1% in December 2025 to 0.7% in January 2026 • Operationally “fig

  40. Slide 40: Additional Information

    Additional Information Anton de Bruyn Chief Financial Officer

  41. Slide 41: Financial metrics

    Financial metrics 2026 Interim Financial Results Rm H1 2026 IFRS 16 Adjusted 50,000 25.0% ROIC impact ROIC 19.5% Rm Rm Rm 45,000 19.4% 20.0% 16.9% Trading profit 15 379 (2 960) 12 419 15.4% 40,000 14.8% 15.0% Effective tax rate 27.0% 27.0% 15.0% Trading profit after tax 11 221 (2 160) 9 061 35,000 4

  42. Slide 42: Diluted headline earnings per share (DHEPS)

    Diluted headline earnings per share (DHEPS) 2026 Interim Financial Results Restated* 26 weeks 26 weeks Change 28 Dec '25 29 Dec '24 % cents cents DHEPS from continuing operations 7.9 708.9 657.3 Adjusted for the impact of: Shoprite Employee Trust distributions to eligible employees in South Africa a

  43. Slide 43: Adjusted headline earnings reconciliation

    Adjusted headline earnings reconciliation 2026 Interim Financial Results Headline earnings DHEPS* 26 weeks 26 weeks 28 Dec '25 28 Dec '25 Rm cents Headline earnings from continuing operations 3 840 708.9 Adjusted for the impact of: Shoprite Employee Trust distributions to eligible employees in South

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