Shoprite held back by alcohol ban

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Shoprite held back by alcohol ban

Published Date: 2021-02-16 | Source: Stephen Gunnion | Author: Stephen Gunnion

Shoprite held back by alcohol ban

The supermarket group says its LiquorShop business lost out on 79 trading days due to lockdown restrictions.

Shoprite's sales have been held back by the latest bans on alcohol. But the supermarket giant will still report a big rise in first-half earnings.

In an operational update for the six months to end-December, Shoprite reported a 4.7% increase in total sales to R83.4 billion. However, stripping out a close to 22% decline in sales at its local LiquorShop business, sales were up 6.3%. It said it lost 79 trading days due to the ban. SA sales increased by 5.6% over the half year but sales at its Supermarkets Non-RSA business declined by 8.4% due to weaker currencies in the other countries it operates in across the continent. Furniture sales at its OK Furniture and House & Home stores jumped close to 16%.

For the six months, Shoprite expects basic earnings per share (EPS) from continuing operations to be 0.1% to 9.7% higher than the 375.2c reported last year while headline EPS will be 5.7% to 15.7% above the 379c previously reported. Adjusted basic HEPS, which exclude the after-tax effect of exchange rate differences and the impact of hyperinflation, will be 12.5% to 22.5% higher.

Following its announcement to either sell all or a majority stake in its Nigerian operations, Shoprite said a deal had been struck and submitted to the Nigerian Federal Competition and Consumer Protection Commission for approval. It expected to wrap up the transaction by the end of June.

Shoprite's interim results are scheduled for release on 16 March. Its shares closed 0.4% up at R145.02 yesterday.





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