Shoprite profits soar, opens 35 new stores across Africa

Africa's largest retailer, Shoprite, has increased its market share for the ninth year running, meeting its profit estimates with a 10.8% rise in full-year earnings.

Headline earnings rose to R7.73 per share in the 12 months ending 30 June, up from R6.98 one year earlier. On this basis, the board has declared a final dividend of R2.43 per share, increasing the year's total pay-out by 10%, to R3.86.

While other retailers in the food business have struggled of late, Shoprite has managed to increase sales by some 11.2%, up to R113.7 billion, largely due to the opening of 170 new stores, as well as its eating up of competitors' market share.

Shoprite is currently following a fairly aggressive expansion plan across Africa, and intends to have 35 new stores outside its home market by June next year.

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