Christo Wiese is set to receive R231.6 million ($13.36 million) in dividends from his stake in Shoprite Holdings after the leading supermarket retailer reported a 21.5-percent increase in earnings at the end of its fiscal year in 2022.
Wiese, a South African billionaire and retail tycoon who played a key role in Shoprite’s retail expansion and growth, owns 11.58 percent of the company, which is presently valued at R14.8 billion ($862.4 million).
Shoprite, which has grown into South Africa’s largest food retailer and Africa’s biggest retailer, has annual sales of more than $9 billion and employs about 142,000 people throughout the African continent in over 2,989 stores.
Wiese’s $13-million dividend will be paid from the group’s retained earnings of R20.6 billion ($1.2 billion) as part of the board of directors’ approval of an R3.67 ($0.214) per share cash distribution.
The retailer’s dividend recommendation of R3.27 billion ($188.5 million) follows its strong financial performance at the end of its fiscal year in 2022.
Shoprite’s profit increased by 21.5 percent, from R4.86 billion ($275.4 million) in 2021 to R5.73 billion ($334 million) in 2022, according to recently released financial results. The gains were made possible by the group’s consistent increase in merchandise sales.
Customers spent another R19.6 billion ($1.14 billion) with the leading retailer this year, resulting in a 9.7-percent increase in revenue from R171.2 billion ($9.99 billion) to R187.74 billion ($10.95 billion).
On the back of this financial performance, the board declared a final dividend of R3.67 ($0.214) per share. This final dividend brings the total payout for the year to R6.00 ($0.35) per share, or a 10.3-percent increase in dividends paid per share over the previous year.