Shoprite: not so bulletproof after all
Until two years ago it was the blue chip that could do no wrong. Now Shoprite has lost its status as a market darling, and proved it’s just as vulnerable as anyone else to the swings of SA’s economy
05 September 2019 - 05:00
For a week or so, it seemed the more the market thought about Shoprite’s frail financial results for the year to June, the less it liked them. Who can blame it? An unexpected spike in debt to R11.6bn from less than R4bn a year ago and a 20% slump in earnings is the sort of combo that makes investors panic.
But, as the share price hurtled towards R110 a share last week, analysts were trying to remember why they ever thought Shoprite could have been worth north of R250 anyway. As recently as March 2018, Shoprite hit a record high of R274.85...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.