Africa’s biggest supermarket chain Shoprite said on Wednesday annual turnover increased by 3.3%, missing analyst estimates, as problems stemming from currency devaluation in Angola weighed on group performance,
Total turnover grew to about R145.6 billion ($10.90 billion) in the 12 months to June 2018, Shoprite said in its operational update. That compared with a consensus forecast of R150.5 billion in a Reuters poll of 10 analysts.
Chronic shortage of foreign currency and currency devaluation in Angola remains an issue for the supermarket chain, which said excluding the impact of the Angolan hyperinflation accounting adjustment, group turnover increased 3.6%.
Angola has been hit by a severe shortage of dollars and the currency has been devalued some 30% to the dollar this year.
At 13:15 GMT, shares in Shoprite declined 5.17% to R208.99.
“Despite the demanding trading environment, exasperated by the sharp decline in internal inflation, the group remains positive about its operational strength, customer support for its brands and is making progress on its strategic priorities,” Shoprite said.