Shoprite's full-year profits rises by 11%

Shoprite said headline earnings per share was below an estimate forecast.

A Shoprite store in central Johannesburg. Picture: Tshepo Lesole/Eyewitness News

CAPE TOWN - Shoprite, Africa's biggest grocer, missed forecasts with an 11 percent rise in full-year profit on Tuesday as debt-laden consumers at its core South African market cut down on spending.

Cape Town-based Shoprite said headline earnings per share (EPS) totalled 675.4 cents in the year to end-June, compared with 607 cents a year earlier.

Eleven analysts polled by Reuters were expecting the company to deliver headline EPS of 681 cents. Headline EPS, South Africa's primary profit gauge, excludes certain one-time items.

Sales rose 12 percent to 92.7 billion rand ($9.11 billion).

After more than two years as investor favourites, South African retailers are fast falling out of favour on growing worries consumer as spending is being squeezed by high personal debt levels and increasing fuel and transport costs.

South African retail sales grew a less-than-expected 1.9 percent in June, data from the government statistics office showed last week.

Shares in Shoprite, which have slumped more than 20 percent this year, fell 1.2 percent to 159.66 rand, lagging behind a 0.9 percent decline in the JSE Top-40 index.