February 11, 2004

By Vera von Lieres

 
Cape Town - Food retailer Shoprite, which is due to post half-year results next week, expects a material rise in first-half earnings. A year ago it was knocked by the stronger rand, which brought about a largely unrealised R61 million foreign exchange loss.

This resulted in a fall of more than 13 percent in net profit.

The loss was in stark contrast to the mostly unrealised exchange profit of more than R50 million in half-year results a year earlier. Shoprite's strong African presence makes it vulnerable to exchange rate fluctuations. It operates in 13 African countries, including Madagascar and Mauritius. It said yesterday that earnings, excluding unrealised foreign exchange translation for the six months to December, would be between 10 percent and 30 percent up. Shoprite's shares fell 2.3 percent to R8.55 yesterday.