Shoprite’s Profit, Dividend Curbed by South African Power Crisis
- Grocer spends millions on diesel to ensure stores have power
- Africa’s largest supermarket chain pushes home market growth
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Shoprite Holdings Ltd. lamented chronic electricity shortages in its home market of South Africa that held back growth in first-half profit and capped gains in the dividend payout.
The owner of chains including Checkers and U-Save spent 465 million rand ($25 million) more on diesel in the six months through Jan. 1 to ensure power during regular rolling blackouts. The extra costs eroded margins in the core South African supermarket business, Cape Town-based Shoprite said on Tuesday.