Shoprite Holdings Limited · JSE:SHP
Shoprite — H1 2005 Earnings Presentation
20 slides from Shoprite's earnings presentation, February 2005
Slide 1: Interim Financial Results December 2004
Interim Financial Results December 2004
Slide 2: Introduction
Introduction Whitey Basson Chief Executive Officer
Slide 3: Carel Goosen, Deputy Managing Director
Carel Goosen Deputy Managing Director
Slide 4: Size of Operation
Size of Operation • Revenue of almost R16 billion • 739 own outlets • 277 franchise outlets • 17 countries • 62 000 employees
Slide 5: Financial Results
Financial Results 6 months ended Dec 03 Dec 04 (26 wks) (27 wks) Revenue (Rm) 13 635 15 529 Revenue growth (%) 6,1 13,9 Operating profit (Rm) 316 466 Operating profit growth (%) 17,2 47,7 Operating margin (%) 2,4 3,1 Adj diluted headline EPS (cent) 43,4 60,1 Adj diluted headline EPS Growth (%) 22,7
Slide 6: Highlights of Results
Highlights of Results • Key information (26 weeks vs. 26 weeks) – Turnover - Total +10,4% - Furniture +16,3% - Non-RSA +22,1% (Stable exch rates) - Non-RSA +10,2% (Rand terms) – Operating profit - Total +25,2% - Furniture +24,4% - Non-RSA -71,0% (Stable exch rates) - Non-RSA -36,4% (Rand terms)
Slide 7: Highlights of Results
Highlights of Results • Key Information (continued) (26 week vs. 26 weeks) – Headline EPS before exch +17,8% to 52,2c – Dividends envisaged per share +33,3% to 22,0c – NAV per share +22,8% to 464c
Slide 8: Highlights of Results
Highlights of Results • Gross margin increased +0.2% – Efficiency in sourcing and replenishment – Refined product ranges – Improved non-food sales with higher margin
Slide 9: Highlights of Results
Highlights of Results • Other operating income increased +12,1% made up as follows: % increase to Rm Volume rebates +14,7 832,5 Commission received +17,3 74,4 Finance income earned +7,1 81,7 Franchise fees received -2,9 10,1 Operating head-lease income -8,9 97,7 Net premium earned +6,3 85,7 Sundry i
Slide 10: Highlights of Results
Highlights of Results • Operating profit increased 47,7% above revenue growth of 13,9% – Extra week’s trading representing R71m – Efficient collaboration with suppliers – Continued growth in financial services – Effective cost control – Decrease in uneconomical leases – Decrease in non-RSA operation
Slide 11: Highlights of Results
Highlights of Results • Exchange losses reduced by R24,5m Rand to US dollar exchange rates – Jun 2003 R7,61 – Dec 2003 R6,94 – Jun 2004 R6,35 – Dec 2004 R5,69 • Exceptional items Rm – 2003 Negative goodwill 72 Lease cancellation 8 – 2004 Profit in Canal Walk 18
Slide 12: Highlights of Results
Highlights of Results • Improved cash flow – Increase in net investment income • Taxation Rm – Normal 156,3 – STC 13,2 – Deferred (2,0) 167,5
Slide 13: Highlights of Results
Highlights of Results • Capital expenditure Rm – Refurbishments 140 – New stores 153 – Information technology 38 – Replacements 57 388
Slide 14: Highlights of Results
Highlights of Results • Inventories – Same level as December 2003 against a sales increase of 14% – Improved levels mainly in distribution centres • Cash balances vs. trade creditors – Reductions due to balance sheet closing date after month-end – Interest-bearing borrowings by subsidiary – Income t
Slide 15: Highlights of Results
Highlights of Results • Debtors Dec 03 Dec 04 Rm Rm Furniture debtors - Installment sales 901 996 - Provision for Impairment (121) (115) - Unearned finance income (79) (80) 701 801 Trade and other receivables 1 122 1 152 1 823 1 953
Slide 16: Highlights of Results
Highlights of Results • Cash flow reconciliation for the period Rm Cash at June 2004 1 134 Cash from operations 679 Changes in working capital (881) Finance income 21 Dividends paid (97) Tax paid (326) Purchase of fixed assets & other investments (348) Interest-bearing loan raised 600 Other (3) Cash
Slide 17: Overview
Overview Whitey Basson Chief Executive Officer
Slide 18: Non RSA
Non RSA • Turnover growth 22,1% on stable currencies • GP reduced by 1,5% as a result of the – Exchange rate effect on exported goods – No local product to compensate • Shrinkage increased by 0,8%
Slide 19: Currencies against US Dollar
80 85 90 95 100 105 110 115 120 27-Jun-04 04-Jul-04 11-Jul-04 18-Jul-04 25-Jul-04 01-Aug-04 08-Aug-04 15-Aug-04 22-Aug-04 29-Aug-04 05-Sep-04 WEAKENED AGAINST US DOLLAR 12-Sep-04 19-Sep-04 STRENGTHENED AGAINST US DOLLAR 26-Sep-04 03-Oct-04 10-Oct-04 17-Oct-04 24-Oct-04 31-Oct-04 07-Nov-04 14-Nov-04
Slide 20: Currencies against Rand
80 90 100 110 120 130 140 27-Jun-04 04-Jul-04 11-Jul-04 18-Jul-04 25-Jul-04 01-Aug-04 08-Aug-04 15-Aug-04 22-Aug-04 WEAKENED AGAINST RAND 29-Aug-04 05-Sep-04 STRENGTHENED AGAINST RAND 12-Sep-04 19-Sep-04 26-Sep-04 03-Oct-04 10-Oct-04 17-Oct-04 Reduced GP 24-Oct-04 31-Oct-04 07-Nov-04 14-Nov-04 21-No