Investment proposition

Massmart, Africa’s second largest retail group, comprises four Divisions operating 441 stores, across 13 sub-Saharan countries. Through our widely recognised, differentiated retail and wholesale formats, we have a leading share in the General Merchandise, Liquor, Home Improvement and Wholesale Food markets.

Strategic and structural clarity

• Massmart operates through four focused Divisions, each of these a leader in its target market and business model
• Additional value is created through inter-Divisional collaboration
• Behaviour is aligned through short-and long-term incentives
• Organic and acquisitive growth criteria is strictly adhered to

Management depth, quality and diversity

• The 47 Group and Divisional Executives hold 75 qualifications of which 55 are degrees, are an average age of 37 years, and 15% are African, Coloured or Indian

Diversification

• Merchandise – Massmart is the second-largest distributor of consumer goods in Africa, and is the leading retailer of general merchandise, liquor, home improvement and building supplies, and the leading food wholesaler
• Formats – trading through a variety of formats
• Customers – serving all mass-market consumers
• Geography – operating in 13 sub-Saharan African countries

Low risk

• Earnings underpinned by high cash generation
• Limited financial leverage
• Conservative through-the-cycle store opening plans

Good governance

• Board composition – three executive and seven non-executive directors of whom four are independent
• Recognised record of good disclosure
• Compliant with King IV Report on Corporate Governance for South Africa and included in the FTSE/ JSE Responsible Investment Top 30 Index
• Member of the Ethics Institute of Southern Africa
• Founding member of the Institute of Directors

Growth

• Continuously improving the productivity of capital, space and labour
• Strengthening supply chain activities
• Upweighting Group private label efforts
• Complementing store growth through targeted acquisitions and greenfield opportunities
• Expansion into food retail through Cambridge Foods, Game Foodco and Makro Fresh