Investment idea: Shoprite

Channel:

PSG Financial Services

Subscribers:

3,870

Published on March 25, 2024 10:32:26 AM ● Video Link: https://www.youtube.com/watch?v=_gr16fKmKIY

Duration: 2:27

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3

On 5 March 2024, Shoprite released its half-year results for year end 30 June 2024.

1. Total sales grew by 13.9% y/y to R121 billion and a like-for-like increase of 6.5%.
2. Gross profit grew by 14.7% to R28.6 billion. Gross profit margin increased slightly from 23.4% to 23.6% y/y.
3. A market share growth of R4 billion and 56 months of uninterrupted market share gains took the total market share to approximately 35%.
4. R500m load shedding costs, putting it on an annual run rate of R1bn, slightly down from R1.3bn in FY23.

Our research supports a hold recommendation.