LEWIS GROUP LIMITED - Results Announcement (Including Audited Summary Consolidated Financial Statements) for the year ended 31 March 2026

Results Announcement (Including Audited Summary Consolidated Financial Statements) for the year ended 31 March 2026

Lewis Group Limited
Incorporated in the Republic of South Africa
Registration number: 2004/009817/06
Share code: LEW
ISIN: ZAE000058236
Debt issuer code: LEWI
(the "Group" or the "Company")


SHORT-FORM ANNOUNCEMENT:
RESULTS ANNOUNCEMENT (INCLUDING AUDITED SUMMARY CONSOLIDATED
FINANCIAL STATEMENTS) FOR THE YEAR ENDED 31 MARCH 2026
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 AND
DIVIDEND DECLARATION

1. Introduction

Shareholders are advised that the following have been distributed:

   -   the Company's full announcement being the highlights, results commentary (which
       includes the cash dividend declaration referred to below) and the summary
       audited consolidated financial results for the year ended 31 March 2026 ("results
       announcement")
   -   the Company's audited consolidated financial statements for the year ended 31
       March 2026 ("audited financial statements"); and
   -   cash dividend declaration of 560 cents per share.

The integrated report for the year ended 31 March 2026 will be released on or before 31
July 2026.

2. Highlights

   •   Revenue increased by 11.1% to R10.3 billion
   •   Merchandise sales increased by 7.3% to R5.5 billion
   •   Other revenue increased by 15.7% to R4.9 billion
   •   Gross profit margin improved from 43.4% to 43.7%
   •   Debtors book grew by 15.2%
   •   Operating profit increased by 12.8% to R1.3 billion
   •   Earnings per share increased by 13.0% to 1 646 cents
   •   Headline earnings per share increased by 18.3% to 1 753 cents
   •   Total dividend increased by 12.1% to 897 cents per share
   •   Return on equity up from 15.4% to 16.2%
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3. Results Commentary

Introduction
The Group continued its strong growth momentum in the year to March 2026, with
headline earnings increasing by 18.4% despite constrained discretionary consumer
spending. The Group continued to invest for longer-term growth through the expansion of
its store footprint and debtors book, which grew by 15.2% to R9.2 billion.

The store base increased to 976 following the opening of a net 58 new stores,
representing the highest number of store openings by the Group in a single year. This
included 36 new outlets for the specialist bedding chain, Real Beds, which expanded its
footprint to 52 stores.

Trading and financial performance
Merchandise sales increased by 7.3% to R5.5 billion, with sales growing by 7.8% in the
second half relative to 6.7% in the first six months. Sales in the traditional retail segment,
which accounted for 89.7% of sales, increased by 7.5%. The speciality segment,
comprising predominantly of UFO, Real Beds and Bedzone grew sales by 5.4%.
Comparable store sales across all brands grew by 4.8%.

Sales in the stores outside South Africa, which represent 15% of the store base,
increased by 6.9% and accounted for 18.2% of Group merchandise sales.

Credit sales increased by 9.6% and accounted for 69.4% of total merchandise sales
(2025: 68.0%). The Group maintained its strict credit granting criteria amid ongoing
financial pressure on consumers, with the credit application decline rate increasing to
41.8% (2025: 38.5%). Cash sales increased by 2.5%.

The Group's customer base increased by 11%, representing an additional 77,000
accounts. This was achieved through effective customer acquisition and retention
strategies and positions the Group for future credit sales growth.

Other revenue, consisting of effective interest income and ancillary services income as
well as insurance revenue, benefited from the strong credit sales growth in recent years
and increased by 15.7%.

Total revenue, comprising merchandise sales and other revenue, increased by 11.1% to
R10.3 billion (2025: R9.3 billion).

The gross profit margin strengthened by 30 basis points to 43.7%.

Operating cost growth of 9.6% was contained below revenue growth. Costs were
impacted by performance and growth-related expenses, including the accelerated
expansion of the store base. Operating costs as a percentage of revenue reduced to
34.0% (2025: 34.5%). Insurance revenue increased by 16.7% while insurance service
expenses increased by 24.3%, impacted by a slightly higher claims ratio.

The quality of the Group's debtors book remains sound, with satisfactory paying
customers at 82.6% (2025: 83.5%) and the collection rate at 78.1% (2025: 78.9%). The
collections from instalment sales increased by 13.6% to R7.1 billion. Debtor costs
increased by 9.8%, with debtor costs as a percentage of debtors at gross carrying value
improving to 14.3% (2025: 15.0%). The debtors impairment provision as a percentage of
debtors at gross carrying value increased to 37.7% (2025: 37.2%).


Operating profit increased by 12.8% to R1.3 billion and the operating margin expanded
by 110 basis points to 23.8%. Impairments and capital items totalled R76.2 million (2025:
R18.2 million) relating mainly to the impairment of right-of-use assets in the speciality
segment.

The Group's net borrowings totalled R1 231 million at year end. The gearing ratio
(including lease liabilities) increased to 40.0% (2025: 36.6%) and the borrowings ratio
(gearing ratio, excluding lease liabilities) increased to 22.4% (2025: 17.3%). The higher
borrowings relate mainly to the increased investment in the debtors book and store
expansion. Both ratios are well within the board's risk appetite and management's guided
ranges.

Headline earnings increased by 18.4% to R909.4 million. Earnings per share increased
13.0% to 1 646 cents and headline earnings per share by 18.3% to 1 753 cents.

The total dividend was increased by 12.1% to 897 cents per share, based on an earnings
payout ratio of 55%.

The Group's return on equity strengthened further from 15.4% to 16.2%.

Outlook
The war in the Middle East has led to global economic uncertainty and volatility in
international energy markets which has resulted in record fuel prices. Inflationary
pressure from higher fuel and transport costs will adversely impact domestic consumer
spending.

The Group remains well positioned to gain market share in the uncertain economic
environment and will continue to focus on affordability and good stock availability while
launching new exclusive merchandise ranges to support future growth.

Management plans to open 40 new stores in the 2027 financial year, including 25
traditional retail stores and 15 speciality bedding stores.
                                                                                            
Dividend declaration
Notice is hereby given that a final gross cash dividend of 560 cents per share in respect
of the year ended 31 March 2026 has been declared payable to holders of ordinary
shares. The number of shares in issue as of the date of declaration is 52 159 288. The
dividend has been declared out of income reserves and is subject to a dividend
withholding tax of 20%. The gross dividend for determining the dividend withholding tax is
560 cents and the dividend withholding tax payable is 112 cents for shareholders who
are not exempt. The net dividend for shareholders who are not exempt will therefore be
448 cents. The dividend withholding tax rate may be reduced where the shareholder is a
tax resident in a foreign jurisdiction which has a Double Tax Convention with South Africa
and meets the requirements for a reduced tax rate. The Company's tax reference number
is 9551/419/15/4.

The following dates are applicable to this declaration:

Last date to trade "cum" dividend                     Tuesday           21 July 2026
Date trading commences "ex" dividend                  Wednesday         22 July 2026
Record date                                           Friday            24 July 2026
Date of payment                                       Monday            27 July 2026

For and on behalf of the board


Hilton Saven              Johan Enslin                    Jacques Bestbier
Independent               Chief Executive Officer         Chief Financial Officer
non-executive
chairman


Cape Town
28 May 2026



4. Auditors Report in Audited Financial Statements

Our independent auditors, Ernst & Young Inc, have expressed an unmodified audit
opinion on the audited financial statements and on the results announcement for the year
ended 31 March 2026.

The independent auditors report includes a section on key audit matters. The only key
audit matter is the expected credit losses on trade receivables.
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The full independent auditor's report is set out on pages 12 to 15 of the audited financial
statements.

Refer https://www.lewisgroup.co.za/pdf/audited-annual-financial-statements/fy26/lewis-
afs-2026.pdf

5. Short-Form Announcement

This short-form announcement is the responsibility of the Company's directors and is a
summary of the full audited financial statements for the year ended 31 March 2026 and
does not contain full or complete details.

The results announcement and the audited financial statements can be downloaded from
https://senspdf.jse.co.za/documents/2026/jse/isse/LEW/FY26.pdf and on the Group's
website www.lewisgroup.co.za as follows:

Results announcement: Refer https://www.lewisgroup.co.za/pdf/audited-final-
results/fy26/lewis-booklet.pdf

Audited financial statements: Refer https://www.lewisgroup.co.za/pdf/audited-annual-
financial-statements/fy26/lewis-afs-2026.pdf

The full results announcement is available for inspection and may be requested at the
company's registered office, at no charge, during normal business hours. Any investment
decision in relation to the Company's shares should be based on the full announcement.



Cape Town
28 May 2026

Sponsor
The Standard Bank of South Africa Limited

Debt Sponsor
Absa Corporate and Investment Bank, a division of Absa Bank Limited




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Date: 28-05-2026 07:05:00
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