Business

An interesting look at Shoprite’s total revenue growth

Drikus Greyling

 ·26 Sep 2025

Shoprite’s non-restated revenue growth has slowed from 16.9% in 2023 to 4.3% in 2025. However, there were big positives associated with this decline.

Shoprite is South Africa’s largest food retailer and owns well-known brands like Checkers, Usave, Shoprite, and Sixty60.

On 2 September 2025, Shoprite released its results for the 52 weeks ended 29 June 2025, revealing another strong performance for the group.

Sales increased by 8.9% to R252.7 billion, and revenue grew by 8.6% to R256.7 billion, driven by the group’s core Supermarkets RSA segment.

The Supermarkets RSA segment houses all of its major trading brands like Shoprite, Usave, Checkers, Checkers Hyper, and LiquorShop.

This segment saw sales growth of 9.5%, contributing R213.50 billion to the total, while the Supermarkets Non-RSA segment grew sales by 6.4% to R20.57 billion.

Sixty60’s sales increased by 47.7%, equating to R18.9 billion this year. CEO Pieter Engelbrecht said the service also boasted 94.0% on-time deliveries and 96.8% order fulfilment.

Overall, Shoprite’s trading profit increased by 16.6% to R14.97 billion, resulting in a trading margin of 5.9%.

The group’s earnings before interest, income tax, depreciation and amortisation (EBITDA) increased by 18.8%, reaching R23.8 billion.

Basic earnings per share from continuing operations grew by 17.9% to 1,362.5 cents per share.

During the year, Shoprite opened 363 stores, expanding its continuing operations footprint to 3,478 stores.

Investors liked what they saw, and the Shoprite share price increased by 12% since the financial results announcement.

Analysts were also impressed, highlighting that Shoprite is the leading retailer on the continent, which continues to deliver outstanding results year in and year out.

Non-restated revenue growth slowed

While Shoprite’s financial performance was indeed impressive, one thing to keep an eye on is the company’s non-restated revenue.

In the latest announcement, Shoprite restated its revenue for 2024 from R246 billion to R236 billion due to many discontinued operations.

The group reported that it would be closing its furniture stores in Angola and Mozambique, as well as selling most of its furniture business to Pepkor.

Shoprite is also in the process of disposing of stores in Malawi, Ghana, Uganda, Nigeria, and Madagascar.

All of Shoprite’s discontinued operations will result in a R9.6 billion reduction in revenue from its books.

Because of the discontinued operations, the revenue for 2024 is reduced by R9.6 billion to R236 billion.

The actual reported revenue in 2024 was R246 billion. Therefore, total revenue increased by 4% from R246 billion to the current revenue of R257 billion.

When considering the actual revenue growth, excluding any restatements, investors can analyse the actual revenue generation of Shoprite.

From 2021 to 2024, Shoprite has experienced very strong total revenue growth, averaging a 12% increase in revenue per year.

However, in its latest report, the group has seen its total (non-restated) revenue growth pull back significantly.

When excluding the group’s discontinued operations and only considering its total revenue growth, it only grew its revenue by 4.3% in 2025.

However, there are positives associated with discontinuing some operations, even when total revenue growth slows. This is because it increased profitability.

Discontinued operations are a way for a business to rid itself of the loss-making and inefficient parts of its operations.

This certainly has been the case for Shoprite. In 2024, the retail group reported a net profit margin of 2.5%.

Although its revenue growth has been subdued, the group reported a net profit margin of 3% for 2025, a significant improvement in its profitability.

Shoprite explains its revenue reporting

Many people may wonder why the Shoprite Group reports restated revenue instead of the total revenue.

The company explained that financial statements are prepared in accordance with International Financial Reporting Standards (IFRS).

Under IFRS 5, once a segment is classified as discontinued operations, prior period comparatives are restated to exclude that business line.

This ensures that the Shoprite Group’s continuing operations are presented on a like-for-like basis. 

The Group’s Furniture segment, as well as its operations in Ghana and Malawi, were discontinued in the current year.

“If we were to rely on non-restated revenue growth, the year-on-year comparison would include revenue streams that are no longer part of our operating base,” the company said.

Including revenue streams that are no longer part of our operating base would distort the growth trend of the continuing business in the current year.

“By focusing on restated revenue growth, the group provides a consistent and transparent view of the underlying performance of our core operations,” it said.

The Shoprite Group said this is the appropriate metric for stakeholders to evaluate.