South Africa’s retail giant, Shoprite, has posted a $10.27 million gain from the sale of its assets in Uganda, Madagascar and Nigeria, after it classified them as under-performing, prompting its exit.
During the 53-week period ended 4th July 2021, the group made a provision of $87.89 million on loss-making stores outside South Africa, with its net debt increasing by 4% to $1.77 billion.
The retailer’s operations in Uganda and Madagascar yielded a combined net gain of $8.85 million, while the sale of the Nigerian subsidiary realised a net gain of $1.41 million after the business was sold at $35.89 million.
The retailer noted that its operations outside South Africa consisting of 14 countries only contributes 20% of the firm’s profitability, with 80% of the earnings coming from South Africa.
Shoprite’s Kenyan subsidiary, whose last store was closed in January, made a net profit of $676,081 during the period under review. According to the retailer Kenya had three stores, Madagascar 10, Nigeria 25 and Uganda had 5.
The Shoprite Group of Companies is Africa’s largest food retailer. It operates more than 2,934 outlets in 15 countries across Africa and the Indian Ocean Islands. It is listed on the Johannesburg Stock Exchange (JSE), with secondary listings on both the Namibian and Zambian Stock Exchanges.
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