Shoprite Holdings Limited · JSE:SHP
Shoprite — H1 2025 Earnings Presentation
55 slides from Shoprite's earnings presentation, Mar 4, 2025
Slide 1: Interim Results Presentation
2025 Interim Results Presentation For the 26 weeks ended 29 December 2024
Slide 2: Opening Comments, Financial Results, Operational and Strategy Update, Questions
Opening Comments 01 Pieter Engelbrecht Financial Results 02 Anton de Bruyn Operational and Strategy Update 03 Pieter Engelbrecht 04 Questions
Slide 3: Financial, Operational and Strategic Progress
Financial Progress • Group Sales value +9.6% to R128.6bn • Gross Margin +30bps to 23.9% • Trading Profit +13.5% to R7.3bn • EBITDA +16.7% to R11.7bn • DHEPS +9.9% Operational Progress • Double-digit sales growth for core RSA Supermarkets has strong customer and volume momentum ✓ Curtailed internal f
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 Hold ings 2025 Interim Financial Results
Slide 5: Proudly South African
Proudly South African Supporting Local Business Creating Employment Opportunities Supporting Team South Africa 91.3% of private label Retail Readiness Programme products are locally has trained 40 369 youth since procured inception Developing SMMEs through Shoprite Foundation Shoprite Next Capital,
Slide 6: Force for Good: People and Planet
Force for Good: People and Planet 91% of private label 6.7% of our electricity packaging is now reusable, is now sourced from recyclable or compostable renewables Increased dry waste recycling R112m surplus food and (+11% cardboard and goods donated in the +19% plastic) period Supporting communities
Slide 7: Financial Results
Financial Results Anton de Bruyn Chief Financial Officer 7
Slide 8: Furniture: Discontinued operations unpacked
Furniture: Discontinued operations unpacked Furniture sale Pingo Delivery (Pty) Ltd OK Furniture and House & Home Furniture segment results (excl. Angola and Mozambique operations): Asset transaction Statement of comprehensive Change H1 2025 H1 2024 • Sale of assets in all jurisdictions, other than
Slide 9: Acquisition of Pingo Delivery (Pty) Ltd unpacked
Acquisition of Pingo Delivery (Pty) Ltd unpacked Pingo Delivery (Pty) Ltd Pingo Delivery (Pty) Ltd Equity transaction H1 2025 income statement classification: • The Group purchased the remaining 50% shareholding in Pingo Before acquisition After acquisition Delivery (Pty) Ltd, increasing our ownersh
Slide 10: Financial highlights
Financial highlights Sales Total income Total expenses Trading profit R128.6bn R33.0bn R25.6bn R7.3bn +9.6% +10.0% +9.0% +13.5% +5.4% Like-for-like* +20bps trading margin EBITDA DHEPS ROIC excl. IFRS 16 Dividend per share R11.7bn +9.9% 16.6% +6.7% +16.7% +10.6% 13.0% 26.0% Diluted EPS WACC ROE * Lik
Slide 11: Sales unpacked
Sales unpacked Restated* 26 weeks 26 weeks Like-for- Change 29 Dec '24 31 Dec '23 like Supermarkets RSA Sales % Rm Rm % Sales growth by brand Supermarkets RSA 10.4 107 670 97 517 6.1 26 weeks 26 weeks Change 29 Dec ’24 31 Dec ‘23 Supermarkets Non-RSA 4.1 11 036 10 606 1.5 % Rm Rm Other operating seg
Slide 12: Supermarkets RSA store expansion
Supermarkets RSA store expansion Space growth (m2)* Number of Last 12 months: 5.6% Number of Confirmed stores Net stores new stores Dec '23 Store movement movement Dec '24 Jun '25 Shoprite 630 2 32 30 660 17 Usave 452 7 35 28 480 43 Shoprite LiquorShop 465 - 42 42 507 16 1 547 9 109 100 1 647 76 Che
Slide 13: Trading profit: total income unpacked
Trading profit: total income unpacked Excl. Sixty60 delivery recoveries and Xtra Savings Plus subscription income owing to Restated* Pingo Delivery (Pty) Ltd acquisition: Restated* Margin margin 20.5% 26 weeks 26 weeks 26 weeks 26 weeks Change 29 Dec '24 31 Dec '23 29 Dec '24 31 Dec '23 Continuing o
Slide 14: Alternative revenue
Alternative revenue Restated* 26 weeks 26 weeks Change 29 Dec '24 31 Dec '23 % Rm Rm Commissions received 8.4 621 573 Sundry revenue 20.7 502 416 Delivery recoveries (64.7) 116 329 Marketing and media revenue 33.3 372 279 Operating lease income 26.3 293 232 Franchise fees received 7.6 99 92 Total al
Slide 15: Trading profit: total expenses unpacked
Trading profit: total expenses unpacked Restated* 26 weeks 26 weeks Change 29 Dec '24 31 Dec '23 Continuing operations % Rm Rm Depreciation and amortisation 18.4 3 920 3 310 Employee benefits 10.8 9 998 9 023 Credit impairment losses/(gains) 60 (18) Other operating expenses 4.0 11 636 11 190 Total e
Slide 16: Trading profit by segment
Trading profit by segment Restated* Restated* Trading trading 26 weeks 26 weeks margin margin Change 29 Dec '24 31 Dec '23 29 Dec '24 31 Dec '23 Continuing operations % Rm Rm % % Supermarkets RSA 15.0 6 718 5 844 6.2 6.0 Supermarkets Non-RSA (9.2) 394 434 3.6 4.1 Other operating segments* 10.0 296 2
Slide 17: Net finance costs
Net finance costs Lease liabilities finance charges unpacked: Restated* 26 weeks 26 weeks Rbn Lease liabilities finance charges as previously¹reported Change 29 Dec '24 31 Dec '23 +20.2% Continuing operations % Rm Rm Interest received from bank account balances (21.5) 201 256 +13.8% Borrowings and o
Slide 18: Capital spend
Capital spend H1 2025 H1 2024 H1 2025 H1 2024 80% Growth capex Rm Rm Rm Rm Growth capex 3 326 2 676 New stores and upgrades 2 676 1 889 Maintaining capex 845 1 051 " Information technology 573 726 Total operating capex 4 171 3 727 Supply chain 77 61 Capex as a % of sales 3.2% 3.2%* 3 326 2 676 Proce
Slide 19: Inventories
Inventories INVENTORIES Restated* SUPERMARKETS RSA R28.1bn H1 2025: R32.6bn Inventories as a % of sales (52 weeks) H1 2025 H1 2024 from continuing operations % % (H1 2024: R23.6bn) H1 2024: R29.3bn SUPERMARKETS NON-RSA Supermarkets RSA 13.7 12.7 R2.8bn (H1 2024: R2.4bn) +11.5% Supermarkets Non-RSA 1
Slide 20: Treasury overview
Treasury overview Borrowings Borrowings to equity Net cash R5.8bn 21.1% R5.4bn R6.3bn US dollar borrowings: 23.8% R8.3bn H1 2024 R136m H1 2024 H1 2024 Net changes in working capital* Access to liquidity Share buy-back (R1.8bn) R997m Inventories (R5.9bn) R6.3bn Trade and other receivables (R1.2bn) R2
Slide 21: H1 2025 Free cash flow
H1 2025 Free cash flow FREE CASH FLOW CONVERSION RATIO H1 2025: 37.0% Rbn 11.9 OPERATING CASH CONVERSION RATIO H1 2025: 83.0% (1.7) 0.7 (1.8) Effective (0.8) Capital allocation R7.8bn tax rate: 30.3% 4.4 (3.9) (3.3) (2.4) (1.0) (0.7) (0.5) Net (3.5) EBITDA Income Changes in Capital Asset Lease Free
Slide 22: 2025 Guidance considerations
2025 Guidance considerations Sales Sixty60 delivery recovery income and Xtra Savings Plus subscription income earned classified as sales for the remainder of FY 2025. Supermarkets RSA selling price inflation for January 2025 measured 3.1% (January 2024: 6.3%). Group plans to add 151 new stores which
Slide 23: Operational Review
Operational Review Pieter Engelbrecht Chief Executive Officer 28
Slide 24: Exceptional H1 performance, outpacing peers
Exceptional H1 performance, outpacing peers +R11.2bn additional sales Sales Gross profit Trading profit R128.6bn +10.8% +13.5% +9.6% (like-for-like 5.4%*) Gross margin +30bps Trading margin: 5.7% EBITDA Capex Inventories R11.7bn R8.2bn >98.0% +16.7% 12 months Dec ‘24 In-stock Continuing operations *
Slide 25: More customers and higher volumes driving record market share in H1
More customers and higher volumes driving record market share in H1 Customer visits Products sold Share gains 625m 3.9bn +R4.7bn +4.6% +6.0% H1 RSA market share* Continuing operations *Value of above-market share growth. Source: NielsenIQ, 26 weeks, December 2024 incl. liquor. Rest of Market univers
Slide 26: Execution against strategy driving strong RSA growth
Execution against strategy driving strong RSA growth 10.4% sales growth despite drop-off in internal inflation: ✓ Real growth and volumes both accelerated from prior period, widening lead on Rest of Market ✓ Black Friday and Festive execution delivered highest ever market share in December 2024 ✓ RS
Slide 27: Africa's most accessible and affordable retailer
Africa’s most accessible and affordable retailer Lower Prices Smarter Promotions • RSA internal inflation slowed to 1.9% (H1 2024: 8.0%)* • R8.9bn in cash savings back into consumers’ pockets • 35% of all products experienced deflation for the half • Record promo participation +2.5 ppts to 37.9% Sup
Slide 28: Winning brand portfolio with distinct customer propositions
Winning brand portfolio with distinct customer propositions RSA Store Positioning More affluent Price sensitive Narrow/specialist range Wide range Shoprite Hold ings 2025 Interim Financial Results
Slide 29: Winning brand portfolio with distinct customer propositions
Winning brand portfolio with distinct customer propositions RSA Store Positioning More affluent Amplified value on wider ranges Checkers format with wider Best value in fresh and premium foods ranges in bulk groceries, general Omnichannel market leader in value on fresh, groceries and merchandise an
Slide 30: Winning brand portfolio: RSA store numbers
Winning brand portfolio with distinct customer propositions RSA Store Numbers More affluent 301 stores 433 298 38 stores stores stores 110 stores 660 stores Price sensitive 507 stores 480 stores Narrow/specialist range Wide range Shoprite Hold ings 2025 Interim Financial Results
Slide 31: Winning brand portfolio: average product range
Winning brand portfolio with distinct customer propositions RSA Average Product Range More affluent ~ 30 000 Avg. product range ~ 2 000 ~ 33 000 ~ 9 500 Avg. product range Avg. product range Avg. product range ~ 2 000 Avg. product range ~ 11 000 Avg. product range Price sensitive ~ 2 000 Avg. produc
Slide 32: Sales growth +7.1% to R59.2bn
Sales growth +7.1% to R59.2bn Supermarkets RSA (incl. liquor) • Low price promise: building long-term consumer trust by providing cheapest every day products vs competitors (independently audited) with efficiencies passed on to customers who need it most • Scale economies: bulk buying through larges
Slide 33: Sales growth +7.1% to R59.2bn
Sales growth +7.1% to R59.2bn Supermarkets RSA (incl. liquor) • Low price promise: building long-term consumer trust by providing cheapest every day products vs competitors (independently audited) with efficiencies passed on to customers who need it most • Scale economies: bulk buying through larges
Slide 34: Consumer Champion: Shoprite
Consumer Champion: Shoprite Shoprite Hold ings 2025 Interim Financial Results
Slide 35: Sales growth +13.6% to R47.6bn
Sales growth +13.6% to R47.6bn Supermarkets RSA (incl. liquor) Checkers remains the fastest growing premium grocer for the 5th year • Gaining share of wallet from both value-focused and affluent customer base • Record fresh food gains driven by successful Discovery Vitality partnership launch • Powe
Slide 36: Sales growth +13.6% to R47.6bn
Sales growth +13.6% to R47.6bn Supermarkets RSA (incl. liquor) Checkers remains the fastest growing premium grocer for the 5th year • Gaining share of wallet from both value-focused and affluent customer base • Record fresh food gains driven by successful Discovery Vitality partnership launch • Powe
Slide 37: Brand advocacy: Checkers and Sixty60
Brand advocacy: Checkers and Sixty60 Shoprite Hold ings 2025 Interim Financial Results
Slide 38: Supermarkets Non-RSA, Other operating segments & Furniture
Supermarkets Non-RSA, Other operating segments & Furniture Supermarkets Non-RSA R11.0bn Supermarkets Non-RSA trading profits Sales • Customer visits +8.0% R434m R434 m R394m R394 m +4.1% ı • 269 stores (net 10 stores opened) R316m R316 m • Diesel prices and interest rates affecting Zambia profitabil
Slide 39: Strategy Update
Strategy Update Pieter Engelbrecht Chief Executive Officer 44
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
Precision retailing Building a data-driven future ✓ Customer-first culture fuelled by data from SA’s largest customer retail rewards programme ✓ Advanced analytics capabilities brought in-house informing decision-making ✓ Gross margin optimised through AI-led pricing and promotions ✓ Like-for-like c
Slide 42: ShopriteX digital capabilities leverage our platform advantage
ShopriteX digital capabilities leverage our platform advantage Value to the Group Alternate revenue/value SA’s No.1 retail rewards programme Incremental sales through customised provides rich customer data for promotions funded by suppliers. Xtra Savings personalisation and customer lifetime value P
Slide 43: A sustainable digital advantage
A sustainable digital advantage SA’s largest, most profitable, omnichannel retailer No. 1 Same-day delivery of larger Race for Reach grocery delivery app in SA general merchandise range +31% active digital customers and Sixty60 app offering 60-minute delivery New Hyper offering with over 10 000 new
Slide 44: Stronger partnerships
Stronger partnerships Winning together with partners aligned to our customer values Health and Wellness Customer Rewards Innovation Global partnerships accelerating innovation Fruit and vegetables sales growth vs Rest of Market (NielsenIQ) 18.1% 1.9% Sept- –Dec Sept Dec2024 ‘24 Rest of market sales
Slide 45: Investing in future-fit capacity to sustain growth ambition
Investing in future-fit capacity to sustain growth ambition New and expanded distribution centres 29 Distribution Centres in total network • Supports growing demand (incl. promotions) from stores • Compensates for lower supplier service levels • Improves on-shelf product availability • Consolidated
Slide 46: Investing in future-fit capacity for long-term growth
Investing in future-fit capacity for long-term growth New and expanded distribution centres Strategic Expansion of store network 29 Distribution Centres in total network • +283 (248 in Supermarkets RSA) net new stores opened in the past 12 months • +151 (122 in Supermarkets RSA) new stores planned i
Slide 47: Leveraging our ecosystem of value for customers
Leveraging our ecosystem of value for customers Shoprite Hold ings 2025 Interim Financial Results
Slide 48: Today: Our winning formula
Today: Our winning formula Shoprite Hold ings 2025 Interim Financial Results
Slide 49: Our second half outlook
Our second half outlook • Supermarkets RSA sales growth for January 2025 increased ahead of H1 2025. • Supermarkets RSA internal inflation for January 2025 measured 3.1% (Jan ‘24: 6.3%). • We remain confident in our ability to execute against our plan and continue to meet the needs of customers. Sho
Slide 50: Thank You Questions
Thank You Questions
Slide 51: Additional Information
Additional Information Anton de Bruyn Chief Financial Officer 58
Slide 52: Financial metrics
Financial metrics H1 2025 Restated* H1 2024 IFRS 16 ROIC excl. IFRS 16 ROIC excl. ROIC impact IFRS 16 ROIC impact IFRS 16 Rm Rm Rm Rm Rm Rm Trading profit 13 960 (3 345) 10 615 12 265 (2 406) 9 858 Effective tax rate 30.7% 30.7% 31.5% 31.5% Trading profit after tax 9 674 (2 318) 7 356 8 407 (1 649)
Slide 53: Diluted headline earnings per share (DHEPS)
Diluted headline earnings per share (DHEPS) Restated* 26 weeks 26 weeks Change 29 Dec '24 31 Dec '23 % cents cents DHEPS continuing operations 9.9 659.9 600.3 DHEPS discontinued operations >100 16.9 7.7 DHEPS including discontinued operations 11.3 676.8 608.0 DHEPS continuing operations 9.9 659.9 60
Slide 54: Adjusted headline earnings reconciliation
Adjusted headline earnings reconciliation Headline earnings DHEPS* 29 Dec '24 29 Dec '24 Rm cents Headline earnings including discontinued operations 3 684 676.8 Headline earnings from discontinued operations (92) (16.9) Headline earnings from continuing operations 3 592 659.9 Adjusted for the impac
Slide 55: Items of a capital nature
Items of a capital nature Restated* 26 weeks 26 weeks 29 Dec '24 31 Dec '23 Continuing operations Rm Rm Notes to the results: Impairment of property, plant and equipment (121) (7) 26 weeks Non-financial asset 29 Dec ‘24 Impairment of right-of-use assets (130) (3) impairments by segment Rm Impairment