Shoprite posts slightly faster H1 profit growth - CNBC Africa

Shoprite posts slightly faster H1 profit growth


by Reuters 0

Shoprite, Africa's biggest grocer. PHOTO: headmasta

This comes as debt-laden consumers took advantage of lower fuel prices and a price war between supermarket chains.

[DATA SHP:Shoprite], which focuses on staple products for low-income and working-class consumers, said diluted headline EPS rose 8.6 per cent to 370.2 cents in the six months to the end of June, slightly faster than an 8 per cent growth achieved a year earlier.

(READ MORE: Shoprite hits R102 bln turnover in 2014)

Headline EPS, the widely watched profit measure in South Africa, strips out certain one-off items.Shoprite, which runs nearly 200 outlets in several other African countries outside its home market, said sales increased 12 per cent to 57.4 billion rand (4.9 billion dollars).

Retailers in Africa's most advanced economy have been struggling in recent years as consumers grapple with high personal debt and unemployment.

(READ MORE: Shoprite retracts from firing 3 000 Zambian workers)

But falling fuel prices in recent months have boosted their disposable income and reduced logistical costs for supermarket chains in competition for market share.

Industry-wide retail sales grew faster-than-expected December, official data showed last week.

Shares in Shoprite were down 0.9 per cent at 177.24 rand by 0831 GMT, lagging a 0.34 per cent gain the JSE Top-40 index.