Shoprite (SHP) H2 2026 earnings summary

Executive summary

• Achieved record customer growth with 1.3 billion visits and over 1.1 million new customers per week, driving volume and market share gains.

• Group sales rose 7.2% to ZAR 270.8 billion, with trading profit up 8.4% to ZAR 16.2 billion and EBITDA at ZAR 25.8 billion.

• Maintained strong cost discipline and operational efficiency, supporting margin expansion despite low inflation.

• Continued investment in digital innovation, supply chain, and store expansion, including 262 net new stores.

• Digital platform Sixty60 sales surged 34.7% to ZAR 25.5 billion, now 11.1% of Supermarkets RSA sales.

Financial highlights

• Group sales increased 7.2% year-over-year to ZAR 270.8 billion.

• Trading profit grew 8.4% to ZAR 16.2 billion; EBITDA up 7.7% to ZAR 25.8 billion.

• Headline diluted EPS rose 12.2% to ZAR 15.27; full-year dividend up 11.8% to 873 cents per share.

• Adjusted ROIC reached 19.8%, 8.3% above WACC of 11.5%.

• Cash and cash equivalents at year-end ZAR 12.9 billion.

Outlook and guidance

• 2027 will include a 53rd week, expected to add significant trading profit; 254 new stores planned, with 211 in Supermarkets RSA.

• Targeting 6% trading margin and 5.8–6% space growth.

• Effective tax rate expected between 26% and 26.5%; CapEx planned at ZAR 7.7 billion, below 3% of sales.

• Inflation expected to remain low through December; focus on managing cost pressures and maintaining gross margin.

• July 2026 sales growth: Group +7.7%, Supermarkets RSA +8.3%; internal inflation remains muted at 0.6%.