South African retailer Shoprite’s profit jumps in Nigeria, Angola

Shoprite Retail Outlet

South African retailer, Shoprite, reported a 15.5 per cent jump in half-year profit, buoyed by sharp sales growth in Angola and Nigeria.

Shoprite on Monday scrapped plans to merge with Steinhoff International.

Shoprite, which sells mostly groceries, has grown rapidly outside its home market with sales in other African countries now accounting for more than a fifth of the retailer’s total.

A merger with Steinhoff International would have created an African retail giant, but the plan was called off after minority shareholders complained that the proposed deal would offer little value for Shoprite.

Some analysts said there were no obvious synergies between the two businesses.

Shoprite reported diluted headline earnings per share of 460 cents for the six months to end-December in line with forecasts and compared with 398.2 cents a year earlier.

Sales in Angola surged 155 per cent from a year ago, while Nigerian revenue jumped 60 per cent.

Both are important growth markets for the retailer, but experienced a shortage of foreign exchange as oil revenues remained under pressure affecting economic growth.

However, Shoprite said it was able to fund its stock requirements from its external balance sheet and kept shelves stocked while many traders in the region struggled.

“It was exceptional growth and we must be cautious because to continue at 150 per cent is unlikely,” Chief Executive Pieter Engelbrecht, said in an investor presentation.

He took the reins from stalwart Whitey Basson in January. (Reuters/NAN)


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  • Laura Kingsley

    ………and South Africans are killing Nigerians in South Africa????? ingrates!!!!

  • sammyctu ode

    We in Nigeria will not behave like the hooligans, thugs and stark illiterates of S.A. who continue to kill, destroy and attack Nigerians and their businesses. We are matured than those animals but they should remember that the huge profits their companies make in Nigeria support their black/white asses.