“After an improved second quarter driven by good festive season trading, the South African supermarket operation increased sales by 7.2%,” the Cape Town-based company said in a statement after the market closed on Tuesday. In Africa, outside of its home market, sales increased by 15%, Shoprite said.
Growth in South Africa has been under pressure as electricity shortages, plunging metal prices and a drought curbs economic growth. The price of white corn, a staple food in southern Africa that’s also known as maize, has more than doubled on the South African Futures Exchange in the past year.
Shoprite shares gained 3.4% to R132 as of the close in Johannesburg, valuing the company at R76 billion. The broader FTSE/JSE Africa Food & Drug Retailers Index increased 3%.