• Shoprite reported a 3.8% decline in annual earnings, the first in 19 years.

Africa’s largest grocery store, Shoprite, has reported a 3.8% decline in annual earnings, the first in 19 years, hampered by foreign exchange fluctuations in Nigeria and most especially the Angola market.

In its results for the year ended July 1, 2018, Shoprite Holdings Limited said its Angolan business was hit by a chronic shortage of foreign currency and a devaluation.

Pieter Engelbrecht, Chief Executive Officer at Shoprite, said, “In testing trading conditions, the Group managed to increase total turnover by 3.1% to R145.3 billion ($10.9 billion) in the 12 months to July 1, 2018.

ALSO READ: We checked MTN Group financial statement and here's how Nigeria, Ghana and South Africa performed

“We continue to invest in our people and products and secure growth opportunities in South Africa and beyond for the long-term growth of the business and in order to serve our customers, communities, suppliers and shareholders.”

Here are the other key details from the financial statement:

– Turnover increased by 3.1% to $10.9 billion

– Diluted headline earnings per share of 968.7 cents, down by 3.8%.

– Trading profit decreased by 1.4% to $557.1 million.

– EBITDA increased by 1.0% to $703.5 million.

– Opened a net 124 corporate stores compared to 109 stores in the 2017 financial year.

– Created 3, 676 additional jobs.

Shoprite in Nigeria

The company said trading in Nigeria was hampered by foreign exchange fluctuations. It also noted the Nigerian stores are showing growth in local currency, albeit at reduced margins.

Imminent expansion into Kenya

Shoprite said is set to expand into Kenyan market and remains committed to the African continent where it has a significant competitive advantage.

Also from Business Insider Sub-Sahara Africa: