Shoprite’s shares leap 15% as SA business improves
The grocer’s earnings declined by up to a fifth in the year to June but sales from its domestic supermarket business rebounded
Shares in Shoprite surged the most in 22 years after Africa’s largest food retailer said sales from its domestic supermarket business rebounded in the second half of its financial year to June, thanks partly to market-share gains.
The recovery meant group turnover for the full year rose 3.2% to R150.6bn compared to the 2.2% increase forecast by analysts, according to Bloomberg data. However, the owner of chains that include Checkers and OK Furniture said earnings declined by up to a fifth in the full year because of trading losses in the rest of Africa and higher costs in SA.