Pieter Engelbrecht-led Shoprite posts $5.59 billion in revenue in H1 2022

Shoprite Holdings, a leading supermarket retail chain led by CEO Pieter Engelbrecht, reported a double-digit increase in sales during the first six months of its 2022 fiscal year driven by a strong growth in its core South African supermarket business.

According to an operational update issued by the retail behemoth, the R91.1 billion ($5.59 billion) in sales generated from its operations in the first half of its 2022 fiscal year are 10-percent higher than the figures reported in the same period of 2021.

This strong growth in Shoprite’s operations during the half-year period can be attributed to a double-digit increase in merchandise sales across key South African stores.

According to the behemoth, sales from its core business segments, which include continued operations in South Africa, accounted for R72.4 billion ($4.7 billion) in merchandise sales for the period. This represents 79.47 percent of its total sales of R91.1 billion ($5.93 billion).

The growth in the group’s core operations in South Africa was boosted by a 49.8-percent increase in the operations of its LiquorShop business, which was impacted by the COVID-19 nationwide lockdown regulations last year.

During the half-year period, its continued operations outside South Africa grew sales by 8.4 percent to R8.6 billion ($559 million), contributing a meager 9.44 percent to group sales.

OK Franchise, Transpharm, MediRite Pharmacies, Checkers Food Services and Computicket, the group’s other operating segments, reported an 8.9-percent sales growth. In terms of contribution to group sales, the segment accounts for 7.1 percent.

At the end of the six-month period, the group had added a net of 57 stores to its corporate supermarket business, bringing the total number of supermarkets in its portfolio to 2,003.

The recent report cements Shoprite’s position as Africa’s largest supermarket chain. In response to the figures in the operational update, shares in the leading retailer increased by 1.1 percent to R204.83 ($13.3) at the time of writing this report.

The retailer’s market capitalization on the Johannesburg Stock Exchange is valued at R120 billion ($7.8 billion), while Engelbrecht’s 0.15-percent stake is valued at R171.6 million ($11.1 million).