Massmart Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1940/014066/06)
Share code: MSM
ISIN: ZAE000152617
(‘Massmart’ or ‘the Company’)


SALES UPDATE FOR 19 WEEK PERIOD ENDED 8 MAY 2022

Total group sales f or Massmart f or the 19-week period ended 8 May 2022 amounted to R30.4 billion, a
decrease of 0.2% over the prior year, with comparab le store (like-f or-like) sales increasing by 2.3% over
the same period. Comparable stores sales exclude the impact of those stores opened or closed during the
period, including those stores impacted by the unrest in July 2021.

Sales f rom continued operations, which excludes Cambridge, Rhino and Massf resh, amounted to R27.9
billion, an increase of 1.4% over the prior year period, with comparable store sales f or continued operations
increasing by 3.9%. Sales relating to our continued operations in South Af rica increased by 1.6%, with
comparable stores sales increasing by 4.4%, whilst sales f rom continued operations in our stores in the
Rest of Af rica decreased by 0.6% on a total and comparable stores basis.

The business has seen higher product and supply chain costs year-to-date; weighted average sales
inf lation across the business is approximately 3.6%, primarily in f ood and DIY categories.

In comparison to the same period in 2019 (which may be considered a reasonable basis f or comparison as
this period represents a base not impacted by Covid-19, as well as KwaZulu-Natal unrest), sales f rom
continued operations in South Af rica increased by 3.1%.


 Summarised Sales growth - YTD              Total Sales 19             Comp Sales         Total Sales vs 2019
                                                weeks                   19 weeks               19 weeks

 Continuing Operations SA                      +1.6%                     +4.4%                  +3.1%

 Continuing Operations ex- SA                  -0.6%                      -0.6%                 -9.5%

 Total - Continuing Operations                 +1.4%                     +3.9%                  +1.8%



 Discontinued Operations                       -15.4%                    -12.5%                 -45.8%



 Total Group                                   -0.2%                     +2.3%                  -5.0%


Business Unit Recap - Continuing Operations

In Makro, total sales f or the 19 weeks increased by 6.7% over the same prior year period, with comparable
stores sales increasing by 9.7%. One Makro store (Pietermaritzburg) has not yet re-opened and is currently
under re-construction f ollowing the signif icant damage suf f ered during the July 2021 unrest. Sales in our
Cash & Carry business increased by 1.0% over the same period last year, with comparable stores sales
increasing by 5.5%. Whilst f ood and liquor sales have perf ormed well, sales relating to general
merchandise, specif ically in Makro, declined on the prior year period as cash strapped consumers f ocused
their spending more toward non-durable items. Compared to the same period in 2019, sales in Makro
increased by 6.0%, indicative of the impact the pandemic had on our Makro customers.

In Builders, total sales decreased by 3.9% over the prior year on the back of an exceptionally strong base
in 2021, with comparable stores sales decreasing by 3.4%. However, Builders sales outpaced industry-
wide sales reported in the hardware, paint and glass sector as measured by the latest Stats SA data
release, suggesting that Builders is gaining market share. Trade sales continue to be challenged by the
slow recovery of the commercial construction industry, whilst general home improvement market growth is
slowing compared to the exceptionally strong Covid-19 induced growth of the last 24-month period.
Compared to the same period in 2019, total sales in Builders grew by 5.9%.

Game was impacted by sof ter general merchandise sales, as the pressure on disposable income resulted
in consumers shif ting their spending in f avour of non-discretionary items. Total sales decreased by 3.7%,
with comparable stores sales coming in 0.9% lower on the same period last year. Total sales in Game’s
stores in South Af rica declined by 1.8%, with comparable stores sales increasing by 2.0%. Encouragingly,
we are seeing consistently positive sales perf ormance trends, both as a result of increased customer traf fic,
larger basket sizes and the positive impact of our store relay and light remodel programme. Sales f rom our
ex- South Af rica Game stores decreased by 12.0% on a total and comparable stores basis, as operations
in various markets were impacted by depressed in-stock levels resulting f rom regional supply chain
challenges specif ic to those markets.

Encouragingly comparable stores sales growth relating to our core Game portf olio, being all stores
excluding the 29 non-core stores subject to divestiture as previously announced, have increased by 1.7%
over the prior year period while non-core comparable stores sales have decreased by 18.9%.

Discontinued operations

Total sales in Cambridge of R2.2 billion was 18.6% lower than the same period in last year. Sales were
directly impacted by the civil unrest that took place in July 2021, as stores impacted and re-opened have
not re-introduced all product categories. This has been exacerbated by customers in this segment of the
market being mostly impacted by the pressures of increased unemployment and lower disposable i ncome.

The inf ormation above has not been audited or reviewed or otherwise reported on by the Company’s
external auditors.


19 May 2022
Johannesburg

Sponsor
J.P. Morgan Equities South Af rica (Pty) Ltd