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Business update and voluntary trading statement for the 26-week period ended 31 December 2023
Truworths International Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1944/017491/06)
JSE and A2X Code: TRU
NSX Code: TRW
ISIN: ZAE000028296
LEI: 37890099AFD770037522
('Truworths International' or the 'Group')
BUSINESS UPDATE AND VOLUNTARY TRADING STATEMENT
FOR THE 26-WEEK PERIOD ENDED 31 DECEMBER 2023
During the first 26 weeks (from 3 July 2023 to 31 December 2023) (the 'current period') of
the Group's 2024 financial period Group retail sales increased by 8.2% to R12.2 billion
compared to the first 26 weeks (from 4 July 2022 to 1 January 2023) (the 'prior period' or
'Dec-2022') of the 2023 financial period.
Retail sales growth for the current period by business segment was as follows:
Retail sales Change on
26 weeks to prior period
31 Dec 2023 %
Truworths Africa R8.4bn (0.3)
Office £162m 15.6
Group R12.2bn 8.2
In the current period, account sales comprised 48% (Dec-2022: 52%) of Group retail sales,
with account sales unchanged and cash sales increasing by 17.0%, relative to the prior period.
Truworths Africa
Retail sales for Truworths Africa (comprising mainly of the Truworths businesses in South
Africa) decreased by 0.3% to R8.4 billion relative to the prior period.
The current period sales performance competed against a high base in the prior period, which
recorded retail sales growth of 13.4% relative to the previous 26-week period. The impact of
the high base was especially pronounced in the last three months of the current period. Retail
sales were impacted by poor economic conditions and high interest rates leading to reduced
disposable income and declining consumer confidence. Credit extension declined as
scorecards reacted to the deteriorating credit health of the South African consumer, thereby
weighing negatively on credit sales. Furthermore, port congestion challenges in South Africa
resulted in lower than expected merchandise deliveries for the December period.
Account sales, comprising 70% of retail sales (Dec-2022: 70%), were unchanged and cash
sales decreased by 0.9%, relative to the prior period.
Since the publication of our business update on 9 November 2023, retail sales for the last 9
weeks (from 30 October 2023 to 31 December 2023) of the current period decreased by 1.6%
to R4.0 billion compared to the last 9 weeks (from 31 October 2022 to 1 January 2023) of
the prior period.
Online sales continued to show good growth in the current period increasing by 41% and
contributing 4.2% to Truworths Africa's retail sales.
Truworths Africa's gross trade receivables increased by 1.6% to R7.2 billion (Dec-
2022: R7.1 billion) and the number of active accounts increased by 4.6% to 2.9 million (Dec-
2022: 2.8 million), reflecting the enticing nature of the Group's account and merchandise
offering. Active account holders able to purchase and overdue balances to gross trade
receivables were at 83% (Dec-2022: 84%) and 12% (Dec-2022: 11%), respectively.
Truworths Africa's like-for-like store retail sales decreased by 3.3%. Trading space increased
0.9% relative to the prior period and is expected to increase by approximately 1% for the
2024 financial period. Product (retail selling price) inflation averaged 8.4% in the current
period (Dec-2022: 13.3%).
Office
Retail sales for the Group's UK-based Office segment increased in Sterling terms by 15.6% to
£162 million relative to the prior period's £140 million. In Rand terms, retail sales for Office
increased by 33.1% to R3.8 billion. Office continues to benefit from its unique market
positioning, brand partnerships and strong online presence. Online sales contributed
approximately 47% of Office's retail sales in the current period, increasing from 44% in the
prior period.
Retail sales for the last 9 weeks (from 30 October 2023 to 31 December 2023) of the current
period increased in Sterling terms by 11.6% to £71 million, compared to the last 9 weeks
(from 31 October 2022 to 1 January 2023) of the prior period.
Office's trading space decreased by 2.8% compared to Dec-2022 and is expected to increase
by approximately 12% for the 2024 financial period as the business starts to invest in new
stores and existing store renovation.
Earnings
The Group estimates its earnings per share ('EPS') and headline earnings per share ('HEPS')
for the current period, on an undiluted basis, to be within the ranges reflected in the table
below:
Dec-2022 Dec-2023 Dec-2023
26 weeks Estimated Estimated range
(cents) increase (cents)
EPS 509.5 1% – 5% 515 – 535
HEPS 494.6 0% – 4% 495 – 515
Shareholders are advised that this business update and voluntary trading statement do not
constitute an earnings forecast, that the financial information provided herein is the
responsibility of the directors, and that such information has neither been reviewed nor
reported on by the Group's external auditors. The Group's interim results for the current
period are scheduled for release on or about Thursday, 29 February 2024.
29 January 2024
Cape Town
JSE Sponsor: One Capital
NSX Sponsor: Merchantec Capital
Date: 29-01-2024 09:38:00
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