Shoprite sees half-year profits growing by up to 22.5%

Shoprite said on Monday its profits for the half year that ended December 27 will be higher by between 12.5% and 22.5% compared with the same period a year ago.

Adjusted basic headline earnings per share (HEPS) – the main measure of corporate profit in South Africa – will be between 400.1 cents ($0.2762) and 435.7 cents, the company said, driven mainly by sales in its local market.

Home market sales, which account for over three quarters of the company’s total sales, grew by 5.6% for the half year, said Shoprite, the country’s largest retailer by market capitalisation.

The biggest sales driver was Shoprite’s furniture business, comprising OK Furniture and House & Home, where sales increased by 15.7% from the year ago period.

South African retailers, suffering even before the coronavirus had hit the country, got a fresh lease of life last year when consumers showed a renewed interest in furniture and home ware products as people started spending more time at home.

Shoprite did not say if the trend was sustainable.

Sales from Checkers and Checkers Hyper – Shoprite’s retail outlets aimed at bigger cities – reported sales growth of 11.1%., the company said.

Shoprite will announce first-half results on March 16.