Shoprite
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Shoprite (SHP) investor relations material

Shoprite H2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H2 2025 earnings summary2 Sep, 2025

Executive summary

  • Achieved record sales of ZAR 252.7 billion, up 8.9% year-over-year, with gross margin improving by 40 bps to 24.3%.

  • Trading profit rose 16.6% to ZAR 15 billion, and diluted headline earnings per share (DHEPS) increased 15.8%.

  • Supermarkets RSA delivered 9.5% sales growth, outpacing the market for the sixth consecutive year, with internal food inflation at a six-year low of 2.3%.

  • Opened 281 net new stores, creating 8,723 new jobs, with a focus on omnichannel expansion and supply chain investment.

  • Acquired remaining 50% of Pingo Delivery and agreed to sell the furniture business to Pepkor Holdings Ltd.

Financial highlights

  • Group sales grew 8.9% to ZAR 252.7 billion; total income margin at 26%.

  • EBITDA increased 18.8% to ZAR 23.8 billion; trading margin improved to 5.9%.

  • Final dividend up 11.5% to ZAR 4.96; full-year dividend up 9.7% to ZAR 7.81.

  • Adjusted ROIC at 19.4% and return on equity at 26.7%.

  • Inventory increased 4.9% to ZAR 29.7 billion, with inventory-to-sales ratio stable at 8%.

Outlook and guidance

  • Plans to open 309 new stores in the next year, with capex targeting below 3.0% of sales.

  • Aims to maintain income margin at 26% and improve expense margin to 20%, targeting a 6% trading margin.

  • Internal food inflation expected to remain low, around 1.8–3%.

  • CapEx estimated at ZAR 7.9–8.0 billion, focused on growth and digital investments.

  • Effective tax rate expected between 27.0% and 28.0%.

60/60's profit drivers and expansion opportunities
How will capital be reallocated post non-RSA exits?
Strategy to sustain market share gains?
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Frequently asked questions

Shoprite Holdings is a retail conglomerate based in South Africa. Its extensive portfolio includes a variety of supermarket brands catering to different market segments across the African continent. Shoprite's primary business focuses on providing a wide range of grocery items, household products, and non-food goods such as furniture, appliances, and home entertainment through its retail outlets. The company operates under several key brands, including Shoprite, Checkers, Usave, and LiquorShop. Shoprite Holdings is also involved in the fast-food sector with its OK Franchise division. The company's strategic emphasis on affordability, convenience, and quality has facilitated its expansion into multiple African countries, making it a central figure in the continent's retail landscape. The company is headquartered in Brackenfell, South Africa, and its shares are listed on the Johannesburg Stock Exchange.

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