Shoprite Holdings’s operating profit growth accelerated in first half, helped by rising demand in its home market of South Africa, which is recovering from debilitating power shortages.
Africa’s biggest supermarket chain said Tuesday that operating profit climbed 14% to R7.4 billion ($397 million) in the six months to December 29. Revenue rose 9.4% to R131 billion from a year earlier.
The owner of chains including Checkers and U-Save, which was spending millions on diesel during regular rolling blackouts for years, is now benefiting from a steady supply of electricity. The World Bank forecasts Africa’s most-industrialised economy to expand 1.8% this year after growing less than 1% in the past decade, and that’s spurring retail sales.
South African power utility Eskom has made significant repairs to its largely coal-fired fleet of plants that generate almost all of South Africa’s electricity, keeping the lights on most days throughout the year.
The company said it will pay an interim dividend of R2.85, up 6.7% from a year earlier.
