Full Year 2026 Shoprite Holdings Ltd Earnings Call Transcript
Key Points
- Group sales grew 7.2% to R217.1 billion, with record market share gains and 1.3 billion customer visits.
- Trading margin improved to 6.0% for the group and 6.6% for RSA supermarkets, driven by strong cost discipline and volume growth.
- Adjusted ROIC reached 19.8%, the highest in a decade, with a record 8.3% spread over WACC.
- 60/60 e-commerce platform sales surged 34.7% to R25.5 billion, becoming South Africa's largest digital commerce platform and improving profitability per order.
- The company opened 262 net new stores, creating nearly 5,500 new jobs, and maintained a strong balance sheet with cash of R12.9 billion and a seven-year low borrowings-to-equity ratio of 19.8%.
- Internal selling price inflation was only 0.8%, with deflation in key categories, limiting pricing power and requiring volume growth to offset.
- Non-RSA segment faced challenges, including a 16.1% decline in interest revenue from Angolan bonds and ongoing difficulties in Mozambique.
- Other operating segments saw a 5.4% decline in trading profit, mainly due to the termination of a large franchise agreement (51 stores).
- Electricity and water costs increased 19.2% due to a 12.7% NERSA tariff hike, adding cost pressure.
- The proposed acquisition of the furniture business (Pep) remains stalled, with the Competition Commission process dragging on for nearly two years, causing frustration and uncertainty.
Good morning ladies and gentlemen. Welcome to the 2026 full year results presentation. That's for the 52 weeks ending 28 June 2026.
We will do our best to complete the presentation in an hour. We really value your time and thank you very much for joining us. I think you've become accustomed to the way that we do so I'll do some opening comments.
Anton will then unpack in detail the financial numbers. I know that's the part that you're looking forward to most. And then I will end off again with a little bit of operational review and a strategy update of where we are and what we're busy with. And then we'll take questions.
So the year that was can probably be summarized in one sense as ShopRite is winning through customer focus and relentless execution.
We had very good momentum. It continued.
1.3 billion customers during the year an additional 1.1 million customers per week and of course I know you understand that it has a whole ripple effect back into the supply chain to
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