Shoprite Holdings Limited · JSE:SHP
Shoprite — H1 2012 Earnings Presentation
8 slides from Shoprite's earnings presentation, 2012
Slide 1: Whitey Basson, Chief Executive Officer
Whitey Basson Chief Execu8ve Officer 28
Slide 2: Agenda
Agenda • Trading Environment • Group Overview • Sales – Supermarkets RSA – Other Opera=ng Segments – Supermarkets Non-‐RSA • Costs • Profitability • Outlook 29
Slide 3: Trading Environment
Trading Environment • Rising food infla=on (above 11% in Dec) placing pressure on consumers • GDP increase to 3.1% in Q3 from 2.7% in the comparable period • Increase in credit advancement 8.6% • Unemployment showed linle improvement, s=ll at 23.9% • Average SA wage increases ahead of infla=on at 8.2%
Slide 4: Group Overview
Group Overview • Group turnover growth of 13.2% • Internal infla=on of 4.6% (LY: -‐1.2%) vs. official food infla=on 9.3% • We were bullish on Christmas -‐ purchased 16% more non-‐food stock • Significant adver=sing and promo=onal pressure over December • The Group’s promo=onal discoun=ng put R189m bac
Slide 5: Group Overview
Group Overview • The Group served a record 3.2 million new customers each month — Complementary services s=ll showing excep=onal growth and anrac=ng new customers to the supermarkets — Checkers s=ll winning affluent customers from compe=tors — Shoprite strongly supported by social grant spending of R1
Slide 6: Group Overview
Group Overview • Addi=onal 119,300m2 of distribu=on space totalling 422,000m2 • 18% increased service levels: bener on-‐shelf product availability than compe=tors • Growing importance of the Group’s interna=onal trade – Import and export shipments up 23% to almost 18,000 containers 33
Slide 7: Group Overview
Group Overview Trading profit increased 16.7% ahead of turnover growth of 13.2% • Trading margin of 5.27% – Trading density 6.4% higher including new stores, against internal infla=on of 4.6% – Increased non-‐food par=cipa=on at higher margins – More than 7% volume growth 34
Slide 8: Group Overview – Our People
Group Overview – Our People • Now more than 99,000 employees • Created 3,959 new jobs in the 6 months • 100,803 training interven=ons • 16,637 completed Customer Protec=on Act awareness training • Skills shortages addressed using bursary programmes ― 268 bursaries provided last year, mostly for phar