Shoprite Holdings Limited · JSE:SHP

Shoprite — FY2011 Earnings Presentation

7 slides from Shoprite's earnings presentation, 2011

  1. Slide 1: Aubrey Karp Divisional Director

    Aubrey Karp Divisional Director 24

  2. Slide 2: Furniture – Trading Environment

    Furniture – Trading Environment • Toughest year in the past decade • Pricing vola<lity – Rand currency strength – Across-­‐the-­‐board defla<on • Interest rate reduc<ons failed to reduce consumer debt exposure • Consumer disposable income erosion con<nued – Affects spending on durables • Electrical pr

  3. Slide 3: Furniture continued: Sales

    Furniture conEnued Sales R3.06bn OK Furniture House & Home Increase 4.9% -­‐2.3% Like for like -­‐0.9% -­‐5.8% • Internal selling price defla<on 15.74% Sales Mix 2010 2011 Home & entertainment appliances 66% 63% Furniture, bedding, pa<o and carpe<ng 34% 37% Cash 70.1% 70.5% Credit 29.9% 29.5% 26

  4. Slide 4: Furniture continued: Debtors Book and Arrears

    Furniture conEnued Debtors Book 2010 2011 Debtors Book R1,04bn R1,10bn New Contracts 247,287 227,917 • Decrease of 7.8% in number of approved new contracts • Average purchase price increase of 6.1% Arrears 2010 2011 Actual arrears 9.5% 9.0% Balance of contract arrears 22.9% 22.1% Bad debts provision

  5. Slide 5: Furniture continued: Trading Profit

    Furniture conEnued Trading Profit: R132m (0.2% increase) Sales 1.9% increase Net Gross Income 4.9% increase Total Expenses 5.4% increase Controllable Expenses 3.1% increase Fixed Costs 12.1% increase • Sales did not increase in line with expenses, especially fixed expenses, aher opening a net of 20 ne

  6. Slide 6: Furniture continued: Store Numbers

    Furniture conEnued Store Numbers Net New Total Confirmed Stores June 2012 OK Furniture 16 232 14 OK Power Express 1 18 1 House & Home 3 50 1 Total 20 300 16 • One store opened in Huambo, Angola and one in Lusaka, Zambia 29

  7. Slide 7: Furniture Outlook

    Furniture Outlook • Low growth environment expected to con<nue un<l end of 2012: – Increased pressure on consumers’ disposable income – Strict applica<on of NCA affordability calcula<on – Market for electrical items to remain excep<onally compe<<ve Future growth drivers: • Increased store footprint (

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