The retail and fast food company, which released its results on Tuesday, recorded an 11.3 per cent rise in headline earnings per share to 675.38 cents from 607.04 cents for the same period in 2012.
Despite the labour unrest and lengthy wage negotiation periods that caused an economic slowdown in the country, Shoprite recorded a 12.1 per cent turnover increase from 82.731 billion rand to 92.747 billion rand.
“The Group increased total turnover by 12.1 per cent to R92.747 billion in a difficult trading environment. Due to its unrelenting focus on containing costs and its ability to generate greater efficiencies from its supply line, the Group was able to grow profit at a faster rate than turnover,” Shoprite CEO Whitey Basson said in a press statement.
“For the first time in the Group's history, trading profit exceeded the 5 billion rand mark rising by 15.6 per cent to 5.394 billion rand. As a result its trading margin exceeded previous levels to reach 5.8 per cent.”
Shoprite’s dividend per share declared was 215 cents, a 10.8 per cent increase from 2012’s 194 cents.
The rise in electricity and transport costs added pressure on consumers’ disposable incomes, which caused shopping patterns to change as they visited stores less frequently, and attempted to meet requirement payments for unsecured loans.
The Group’s depreciation and amortisation grew 23.9 per cent to 1.351 billion rand due to the continued investment in new and refurbished stores, distribution centre expansions and investment in information technology.
Other expenses increased by 15.5 per cent, which were also due to the increase in turnover, the opening of new stores and increased electricity and other energy costs.
The Group’s South African supermarket’s division increased sales by 9.8 per cent from 64.584 billion rand to R70.926 billion rand. Its non-South African supermarkets had an accelerated turnover by turnover 27.9 per cent.
Its furniture division’s turnover growth dropped to 4.7 per cent from 11.1 per cent the previous year.
As of June 13 2013, the Group had 954 stores that included Checkers, Shoprite, Checkers Hyper and Usave. The Group also had 166 Hungry Lion fast food outlet, 336 furniture outlets of its OK Furniture and House and Home brands, and 380 stores of its OK Franchise. This brings a total of 1836 stores under the Group.