Home » Shoprite, linked to South African billionaire Christo Wiese, sees profits soar to $308 million

Shoprite, linked to South African billionaire Christo Wiese, sees profits soar to $308 million

by Feyisayo Ajayi
Christo Wiese

Shoprite Holdings, Africa’s largest retailer, which is partly owned by South African billionaire Christo Wiese, has announced robust financial results for its fiscal year 2023, ending on July 2, 2023, with a remarkable surge in profit to $308.5 million.

The figures, detailed in the company’s recently published financial report, revealed that Shoprite’s profit for the fiscal year 2023 experienced a 2.8-percent increase, climbing from R5.74 billion ($300.17 million) in the previous year to R5.9 billion ($308.55 million).

This impressive performance comes despite challenging operating conditions and a significant rise in energy costs, contributing to increased operating expenses ultimately impacting the profit margin.

Throughout the fiscal year under review, Shoprite demonstrated impressive revenue growth, registering a substantial 17.1 percent increase. The company’s revenue surged from R187.53 billion ($9.8 billion) in 2022 to R219.53 billion ($11.48 billion) in 2023.

Key to this revenue boost was Shoprite’s core Supermarkets RSA segment, with all supermarket brands making significant contributions.

Notably, the results include the performance of the 92 stores acquired from Massmart, with two additional stores awaiting liquor license transfer before commencing operations.

Commenting on its financial performance, Pieter Engelbrecht, CEO of Shoprite, expressed gratitude for the unwavering support of the company’s customers: “We remain humbled by the extent to which our customers continued to vote with their wallets in support of our efforts across our core supermarket and LiquorShop businesses in South Africa, spending an additional R26 billion ($1.36 billion) more than last year with us. During a time when every cent really does count, this equated to a 1.4 percent increase in market share, extending our period of uninterrupted South African market share gains to 52 months.”

Shoprite Holdings stands as South Africa’s leading food retailer and holds the distinction of being Africa’s largest retail entity. The company boasts a workforce of over 142,000 individuals spread across Africa, serving customers through more than 2,989 stores.

Wiese, a South African billionaire and influential figure in the retail sector, holds an 11.58-percent stake in Shoprite, valued at more than $900 million. Wiese’s holdings include 305.6-million non-convertible, non-participating, no-par value deferred shares and his common stock, representing 32.2 percent of Shoprite’s voting rights.

As a result of its resilient financial performance, the board of directors of Shoprite Holdings has declared a final dividend of R4.15 ($0.217) per share. This decision reflects a substantial full-year dividend per share growth of 10.5 percent, underscoring Shoprite’s commitment to delivering value to its shareholders and stakeholders alike.

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