Shoprite shares drop sharply
Shoprite said sales came in at R92.7 billion in the year to end-June.
JOHANNESBURG - Africa's biggest grocer Shoprite Holdings Ltd missed estimates with a 12.1 percent rise in full-year sales, reflecting a slowdown in spending that sent its shares sharply down on the Johannesburg Stock Exchange on Tuesday.
Shoprite said sales came in at R92.7 billion in the year to end-June, below the R95 billion mean estimate in a Reuters poll of 10 analysts.
"The growing pressure on consumers' disposable income reflects in the slowdown in sales in the South African supermarket division," it said in a statement.
After more than two-years as investors' favourites, retailers in Africa's biggest economy are quickly losing their lustre as debt-fuelled consumer spending stalls.
Shares in Shoprite, which are down about 10 percent so far this year, skidded another 5.5 percent to R180.64 by 3.44pm, on course for their biggest daily decline in more than six months.
The stock would have to fall by another 11 percent to meet what Thomson Reuters StarMine estimates as a level that justifies Shoprite's most likely earnings trajectory over the next five years.