Shoprite's share price jumped more than 3% and is trading close to its highest level in a year, after the company reported strong sales growth, and a large increase in prices.
Including LiquorShop sales, its South African supermarkets delivered 19.9% growth in the three months to end-September. Selling prices were 8.2% higher than a year before.
The group, which includes Checkers and OK stores, noted that the strong growth was due in part to a low base in the same quarter last year, when civil unrest in KwaZulu-Natal closed 231 stores. Also, in the same quarter last year, its LiquorShop stores couldn't operate for 48 out of 91 trading days due to lockdown restrictions.
Shoprite warned that the 56% increase in fuel costs over the past year is hitting its costs, with intensive Stage 5 and 6 load shedding demanding increased generator use - adding R100 million to its monthly spending on diesel.
Supermarket sales in the rest of the Africa grew by 18.8%. Furniture sales were up 5%.
Shoprite says it is "well stocked" ahead of the festive season and that the Transnet strike didn't affect supplies.
The group opened 46 stores in South Africa during the quarter: seven Checkers stores, one Checkers Hyper, two Shoprite, 10 Usave, 18 LiquorShop, four Petshop Science, three Checkers Little Me and one Checkers Outdoor store.
But on the rest of the continent, store growth was limited to a net of one new store (three new stores in Namibia were opened, while one store closed in Namibia and Malawi respectively).
By early morning trading, Shoprite was up 692c to R243.41.