Shoprite Holdings Limited · JSE:SHP
Shoprite — Earnings Presentation (February 2013)
6 slides from Shoprite's earnings presentation, February 2013
Slide 1: Furniture Outlook
Furniture Outlook • Lowgrowthenvironmentexpectedtocontinueuntil endof2015 Increasedpressureonconsumers’disposableincome Continuingelectricalproductpricecompetitiveness Futuregrowthdrivers • Expansionwith14storesconfirmedtoJune2013 • Deepdiscountingofhighvalueproductstodrivevolumes • Continuedproduct
Slide 2: Agenda
Agenda • TradingEnvironment • GroupOverview • SupermarketsRSA • OtherOperatingSegments • AreasofFocus • Outlook 31
Slide 3: Trading Environment
TradingEnvironment • Officialfoodinflationstableat6%fortheperiod • 2012GDPgrowthslowedtoonly1.2%inQ3vs3.4%inQ2 • WeakRandatR9/$increasingcostpressures • SAlabourunrestdirectlyimpactingShopritesales – R1.1bnlostinmineworkerwages,estimatedsaleslossR280m • Unemploymentdeteriorated,inexcessof25%forQ3 •
Slide 4: Group Overview
GroupOverview • Despiteeconomicconditions,theGroupmanagedturnover growthof13.8%andtradingprofitgrowthof16% • Decembersalesgrowth11.9%,offaveryhighgrowth inDecemberlastyearof17.2% • Continuedtoabsorbfoodinflationwithsellingprice increaseslowerthanofficialfoodinflation(4.3%vs6%) • Stillgainingmarketsh
Slide 5: Group Overview
GroupOverview • Nowtradingfrom2146outlets • Opened140corporateoutletsinthe6months: – 55Corporatesupermarkets,10inNonRSA – 42Pharmacy,liquorandfastfoodoutlets – 27Franchises – 16Furniturestores • 108878employees • 6741newjobscreated intheperiod 34
Slide 6: Group Overview: Customers
GroupOverview Customers • TheGroupservedarecord3.5millionnewcustomers eachmonth(up4.5%) • Shopritenowhas20millionindividualshoppersinSA (Amps2012) • R5.6bninsocialgrantscollectedinourstores • HigherLSMcustomersstillchangingtoCheckers, salesgrowthof13%withonly4%priceinflation • Usavehad16%growthincus
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