Business Shoprite Profit Jumps By 15.5% As Sales Increase Nigeria, Angola

South African retailer, Shoprite on Monday, reported a 15.5 percent jump in half-year profit, buoyed by sharp sales growth in Angola and Nigeria.

Shoprite, which sells mostly groceries, has grown rapidly outside its home market with sales in other African countries now accounting for more than a fifth of the retailer's total.

Shoprite reported diluted headline earnings per share of 460 cents for the six months to end-December in line with forecasts and compared with 398.2 cents a year earlier.

Sales in Angola surged 155 percent from a year ago, while Nigerian revenue jumped 60 per cent.

Shoprite Nigeria.JPG

Both are important growth markets for the retailer but experienced a shortage of foreign exchange as oil revenues remained under pressure affecting economic growth.

However, Shoprite said it was able to fund its stock requirements from its external balance sheet and kept shelves stocked while many traders in the region struggled.

“It was exceptional growth and we must be cautious because to continue at 150 percent is unlikely,” Chief Executive Pieter Engelbrecht, said in an investor presentation.

- Reuters
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