Shoprite (SHP) H2 2025 earnings summary

Executive summary

• Achieved record sales of ZAR 252.7 billion, up 8.9% year-over-year, with gross margin improving by 40 bps to 24.3%.

• Trading profit rose 16.6% to ZAR 15 billion, and diluted headline earnings per share (DHEPS) increased 15.8%.

• Supermarkets RSA delivered 9.5% sales growth, outpacing the market for the sixth consecutive year, with internal food inflation at a six-year low of 2.3%.

• Opened 281 net new stores, creating 8,723 new jobs, with a focus on omnichannel expansion and supply chain investment.

• Acquired remaining 50% of Pingo Delivery and agreed to sell the furniture business to Pepkor Holdings Ltd.

Financial highlights

• Group sales grew 8.9% to ZAR 252.7 billion; total income margin at 26%.

• EBITDA increased 18.8% to ZAR 23.8 billion; trading margin improved to 5.9%.

• Final dividend up 11.5% to ZAR 4.96; full-year dividend up 9.7% to ZAR 7.81.

• Adjusted ROIC at 19.4% and return on equity at 26.7%.

• Inventory increased 4.9% to ZAR 29.7 billion, with inventory-to-sales ratio stable at 8%.

Outlook and guidance

• Plans to open 309 new stores in the next year, with capex targeting below 3.0% of sales.

• Aims to maintain income margin at 26% and improve expense margin to 20%, targeting a 6% trading margin.

• Internal food inflation expected to remain low, around 1.8–3%.

• CapEx estimated at ZAR 7.9–8.0 billion, focused on growth and digital investments.

• Effective tax rate expected between 27.0% and 28.0%.