RETAIL SALES
Tough times hit Truworths profits
CEO Michael Mark says that despite the difficult period, the quality of the Truworths debtors portfolio is improving
Truworths has lowered its dividend by 9c to 261c per share, as a result of persisting tough trading conditions in SA and the UK in the six months to December. With a dual listing on the Johannesburg and Namibian stock exchanges, the company has a presence in Germany, Ireland and some sub-Saharan African countries. Retail sales proved challenging in 2017, affected by low economic growth, high levels of unemployment and soft real growth in household income. The group’s operating profit fell 3% to R2.4bn and diluted headline earnings per share were 3% lower at 379.3c. Retail sales increased 1% to R10.30bn, with Truworths contributing R7.4bn and UK-based Office R2.8bn. Cash from operations totalled R1.8bn and was used to fund dividend payments of R790m. During the six months to December Truworths opened 25 stores across all brands, while the acquisition of Loads of Living added a further 13 stores. At the end of the period the group had 977 stores, up from 939 in 2016. CEO Michael Mark ...
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