Truworths increases retail sales despite challenges like load shedding, supply chain disruptions

Truworths says it managed to increase retail sales by 9% to R18.5 billion despite challenges like load shedding, global supply chain disruptions and financial pressure on consumers.

It said in a trading statement on Tuesday that its audited results for the year ended 3 July 2022 would likely be released on or about 1 September 2022.

According to Truworths, it has a strong balance sheet and could manage margins and costs effectively.

Account sales comprised 52% of group retail sales for the period – the same level as during the 2021 financial year – but with account sales increasing by 8.7% and cash sales increasing by 9.3%.

The company describes its debtors book as in a healthy position with overdue balances as a percentage of gross trade receivables improving to 14% from 15% during the 2021 financial year.

In South Africa, the further relaxation of Covid-19 restrictions during the current period was favourable for consumer sentiment, and ultimately retail spending. Trading was, however, negatively impacted by the civil unrest in July 2021, mainly in KwaZulu-Natal and Gauteng, as well as the recent flooding in KZN.

In the UK, trading conditions improved, but inflation is putting strain on consumers’ disposable income.

In February this year, Truworths announced that its profitability was back to where it was before the pandemic and it reported the highest half-year trading and operating profit performance in the group’s history.

By late morning on Tuesday, the share price was up 3.08% at R49.74. – news24.com