Shoprite Operating Profit Jumps 14% as South Africa Power Crisis Eases
TLDR
- Shoprite Holdings, Africa’s largest supermarket chain, posted a 14% rise in operating profit to R7.4 billion ($397 million)
- Revenue climbed 9.4% to R131 billion ($7.2 billion) from the previous year, the company announced on Tuesday
- Eskom’s repairs to its power stations have reduced outages, supporting consumer confidence and boosting retail sales
Shoprite Holdings Ltd., Africa’s largest supermarket chain, posted a 14% rise in operating profit to R7.4 billion ($397 million) in the six months to December 29, driven by rising demand in South Africa, its biggest market.
Revenue climbed 9.4% to R131 billion ($7.2 billion) from the previous year, the company announced on Tuesday. The owner of Checkers and U-Save has benefited from improved electricity supply, after years of spending millions on diesel to keep stores running during rolling blackouts.
Eskom’s repairs to its power stations have reduced outages, supporting consumer confidence and boosting retail sales. The company declared an interim dividend of R2.85 ($0.15) per share, a 6.7% increase from last year.
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Points clés à retenir
South Africa’s economic outlook is improving, with the World Bank projecting 1.8% GDP growth in 2025, up from less than 1% over the past decade. The recovery is fueling demand for groceries and consumer goods, benefitting retailers like Shoprite. The supermarket chain, which operates across Africa, previously struggled with rising costs from power shortages. However, Eskom’s stabilization efforts have reduced operational disruptions, helping retailers regain profitability. With inflation slowing and the energy supply improving, Shoprite and other consumer-focused companies are positioned for further growth in 2025.
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