Prime Highlights-

• EBITDA climbs 7.7% to 25.8 billion rand; gross margin rises to 24.5%.
• Final dividend set at 566 cents per share, up 14.1% year on year.

Key Facts-

• Shoprite headline earnings per share rise to 15.32 rand from 13.65 rand.
• Group sales grow 7.2% to 270.8 billion rand across African operations.

Background–

South African retailer Shoprite Holdings posted a 12.2% jump in annual headline earnings, helped along by steady sales gains and growth across its core grocery operations.

The country’s biggest supermarket chain said headline earnings per share from continuing operations climbed to 15.32 rand, close to $0.95, for the financial year, up from a restated 13.65 rand the year before.

Earnings before interest, tax, depreciation and amortisation grew 7.7% to reach 25.8 billion rand, around $1.60 billion, up from a restated 23.9 billion rand. Gross margin also ticked upward, moving to 24.5% from 24.3%.

Group sales climbed 7.2% to hit 270.8 billion rand, with the core South Africa supermarkets arm doing much of the heavy lifting, growing sales 7.1% to 228.7 billion rand. The rest of Africa supermarkets business outpaced that mark, posting sales growth of 11%, or 7.1% once currency swings are stripped out.

On the back of these gains, the board set a final dividend of 566 cents per share, a jump of 14.1% over the prior payout.

Shoprite’s latest numbers show real progress across South Africa and beyond, with stronger sales, tighter margins, and a bigger payout all working in the retailer’s favor within the grocery space.

The company’s showing also fits a bigger picture of strength in South African retail, with Shoprite putting its size to work and pushing further into both established and newer African markets, keeping growth steady across its stores.