(Ecofin Agency) - Shoprite Holdings started the trading day of January 30, 2019, with the highest loss it ever recorded on the Johannesburg stock exchange since 1999 (-17%). Later on, it gradually recovered.
The market reacted negatively to a release published by the holding announcing a decrease of its net income per share by 19%-29%.
This counter-performance of the net income per share is due to two factors. First, in South Africa, digitalization and repeated strikes negatively affected households’ revenues and consumption by proxy. Secondly, on important markets such as Angola, the devaluation of local currencies increased the cost of supplies but the differences were not passed onto final consumers.
Let’s note that at the end of H1, 2018, the net income per share of Shoprite Holdings was ZAR5.3 and, it was the lowest since H2, 2016. At mid-day on January 30, 2019, Shoprite Holdings’ share showed a 12.68% loss, which is still important for the second largest distribution company listed on the African market.