Table of Contents
Key Points
- Shoprite's profit rose 4% to $348.4 million for the fiscal year ending June 30, 2024, despite economic challenges.
- Revenue increased 12% year-over-year, reaching $13.78 billion, driven by higher customer traffic and increased spending.
- CEO Pieter Engelbrecht announced plans to sell its furniture business and acquire the remaining stake in Pingo Delivery.
Shoprite Holdings, a leading retailer partly owned by South African billionaire Christo Wiese, has reported a notable financial performance for the fiscal year ending June 30, 2024. The company's profit surged to $348.4 million, up four percent from the previous year’s $335.5 million, despite facing substantial economic challenges.
For the 52 weeks ending June 30, 2024, Shoprite's profit increased from R5.99 billion ($335.5 million) to R6.22 billion ($348.4 million). This growth was driven by a 4.5-percent rise in customer traffic and a 6.9-percent increase in average basket spending.
The group's revenue climbed 12 percent year-over-year, from R219.65 billion ($12.3 billion) in 2023 to R246.08 billion ($13.78 billion). This growth was fueled by a 4.5-percent increase in customer traffic and a 6.9-percent rise in average basket spending. The profit increase from R5.99 billion ($335.5 million) to R6.22 billion ($348.4 million) highlights Shoprite's resilience in a challenging economic environment.
CEO highlights key structural changes
CEO Pieter Engelbrecht attributed the positive results to the company’s robust cost-management strategies and expansion into digital and delivery services, which have been well-received by customers.
Engelbrecht expressed pride in the company's achievements, stating, "It is my privilege to present results that aptly reflect a year in which we remained focused on our business and what we stand for – being best-priced, in-stock, solution-driven, and customer-led."
Looking ahead, Engelbrecht outlined two significant structural changes. Firstly, Shoprite has agreed to sell its furniture business, including OK Furniture and House & Home brands (excluding operations in Angola and Mozambique) to Pepkor Holdings.
Secondly, the company is in advanced discussions to acquire the remaining 50 percent of its last-mile logistics provider, Pingo Delivery, as part of its strategy to become Africa’s leading omnichannel retailer.
Shoprite’s footprint expands across Africa
Shoprite's operational footprint includes more than 3,600 stores across Africa, employing more than 150,000 people. Christo Wiese, who owns an 11.5-percent stake in Shoprite and has a net worth of $1.4 billion, continues to play a significant role in supporting the retailer's strategic initiatives.
The company's total asset base increased by 10.37 percent, from R101.77 billion ($5.7 billion) to R112.33 billion ($6.3 billion), and shareholders’ equity improved by 8.3 percent, rising to R27.72 billion ($1.55 billion).
Retained earnings also saw an increase from R20.56 billion ($1.15 billion) to R22.9 billion ($1.28 billion). Shoprite's commitment to growth is reflected in its expanding customer base, now exceeding 30 million in South Africa alone, excluding its nine other African markets.
