Shoprite profit up by 8% amid ‘economic crisis’

Shoprite Holdings, a South African retail business line, announced an 8.8 percent rise in half-year profit on Tuesday, despite economic crises in its home country, South Africa, and its biggest market, Nigeria.

In a statement signed by Whitey Basson, the company’s chief executive, the retailer said its net income rose by 12 percent in six months – July to December,2015 – to N29 billion ($146 million).

Its results were boosted majorly by non-south African outlets – Nigeria and Angola precisely.

“The Group’s results were boosted by strong growth in the major markets where it trades outside South Africa,” the statement read in part.

“Effective management of all aspects of the business, including cost control, enabled the Group to achieve a trading profit which, at R3.314 billion (N43.3 billion) — 2014: R3.003 billion — is 10.4% higher than in the comparative period”

“The economies of oil-rich Angola and Nigeria showed surprising resilience despite the challenges brought about by the steep drop in the oil price.”

The company claimed it created over 6,000 jobs in six months, opening 74 new outlet within the last six months of 2015

“Sustainable growth remains central to the Group’s strategy and during the twelve months to December a total of 176 net new corporate stores were opened (74 of which were in the period under review).

“Some 6,150 new jobs were created making us one of the largest employers in South Africa, employing more than 136,000 people.”

FOREX RESTRICTIONS DIDN’T STOP OPENING OF 4 NIGERIAN OUTLETS

Shoprite said the Nigerian market did very well during the time under review, adding that it foreign exchange restrictions did not stop the opening of four new outlets.

“Despite the sharp drop in commodity prices, oil-dependent countries such as Nigeria and especially Angola performed very well.

“Boosted by the opening of two new stores, Angola replaced Zambia as the biggest contributor to Non-RSA turnover.

“Despite import restrictions and forex shortage, Nigeria opened four new stores during the period with four more planned for the second half of the year.”

According to Abiola Ajimobi, the governor of Oyo state, Shoprite opened its largest mall in Africa in Ibadan, West Africa’s largest city, in the year under review.

Shoprite remains the largest retailer in Africa.