Operational Profile

Masscash

Masscash Brands

Masscash consists of wholesale food and cosmetics business interests as well as retail outlets, all of which target the lower LSM groups. Our wholesale division consists of CBW, Jumbo Cash & Carry, and Shield as well as a number of independent wholesalers operating under their own brands while our retail division is being consolidated under the Cambridge banner.

CBW wholesales food, liquor, groceries and cosmetics in bulk to independent general dealers, government feeding schemes, franchise members, small traders and hawkers in peri-urban and rural areas within southern Africa. Jumbo sells mainly cosmetics, toiletries and hair-care products to individual customers and independent general dealers. Shield is a voluntary buying association that buys products in bulk on behalf of 633 members who own wholesale or retail food businesses in South Africa, Botswana, Namibia and Swaziland.

We also manage the brands of a number of our wholesale customers. At the lowest end of the market, we provide marketing support such as supplying signage and leaflets to spaza shop and shebeen owners through our Banner Group initiative. Masscash owns the rights to these brands and logos.

We offer wholesale customers with more formal operations the ability to trade under national retail brands such as Saverite, Multisave, Powersave and Liquorland. Our marketing team offers wide-ranging support to these supermarkets and bottle stores, assisting owners with marketing initiatives such as designing of leaflets, signage and implementing national television and radio advertising campaigns.

On the retail side, we are consolidating our retail outlets under the Cambridge brand. Fresh service departments, consisting of an on-site bakery, butchery and fresh fruit and vegetable offering form an important component of our Cambridge retail offering.

Masscash Fast Facts

Merchandise proposition: comprehensive range of food, ethnic cosmetics, liquor and groceries
Masscash Brands: Jumbo and Shield, CBW and Cambridge Food
Number of stores: 75 CBW stores, 27 Cambridge Food stores and 6 Jumbo stores. Shield has 633 members and 686 outlets
Target market: LSM 2-6
Total 52 week sales: R22,894.8m
2012 trading profit (before tax): R302.2m
2012 trading area: 382,101m²
Average trading area per store: 3,107m²
CBW geographic presence: South Africa, Botswana, Lesotho, Mozambique, Namibia and Swaziland
Jumbo geographic presence: South Africa
Shield geographic presence: South Africa, Botswana, Lesotho, Namibia, Swaziland
Number of employees: 11,245

Our Value Proposition

All our stores apply the philosophy of supplying the right range of products at competitive prices to low- to middle-income wholesale customers. We keep costs down by employing a no-frills cash and carry warehouse format, coupled with basic distribution centres that supply our private label and important general merchandise ranges. Our private label food brands, Econo and Heritage, offer our customers exceptional value and the assurance of stringent quality and safety controls. Our retail stores are well located, close to high traffic commuter nodes, and offer the best quality at affordable prices.

Financial Performance (June 2012)

		2012 52 week	2011 52 week	2010 52 week
Sales	Rm	22,894.8	19,623.7	17,418.0
Trading profit before interest¹	Rm	281.2	374.8	469.1
Trading profit before interest as % sales	%	1.2	1.9	2.7
Net finance income	Rm	21.0	16.9	26.5
Trading profit before taxation¹	Rm	302.2	391.7	495.6
Trading profit before taxation as % sales	%	1.3	2.0	2.8
Operating profit before taxation	Rm	273.9	404.6	498.4
Operating profit before taxation as % sales	%	1.2	2.1	2.9
Inventories	Rm	1,954.3	1,613.6	1,354.4
Inventory days²	days	34	33	31
Net capital expenditure³	Rm	314.2	244.0	95.6
Cash flow from operating activities	Rm	586.9	93.3	154.1
Number of stores		123	105	97
Trading area	m²	382,101	351,929	321,210
Average trading area per store	m²	3,107	3,352	3,311
Number of employees		11,245	9,276	8,395
Sales per store⁴	R000	160,762	158,289	148,927
Sales per m²	R000	52	47	45
Sales per employee	R000	2,036	2,116	2,075

1.	Trading profit is earnings before asset impairments, BEE IFRS 2 charges, foreign exchange movements, loss on disposal of business, assets classified as held for sale and Walmart costs.
2.	The ratios have been calculated using year-end statement of financial position figures.
3.	Net capital expenditure is defined as capital expenditure less disposal proceeds.
4.	Sales for Shield, Cellshack, Saverite and Kawena are excluded as they do not have stores.
5.	Definitions/explanations to the ratios and terms above can be found on here.