Diversified retail group TFG has announced a record turnover of R12,5 billion (interim results to end-September), reflecting 9.2% growth. This despite difficult economic and political conditions in South Africa and the United Kingdom, two of the three major economies in which it trades.
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TFG CEO Doug Murray (pictured) said that retail turnover growth was achieved through growth of 5% (ZAR) in TFG Africa (all operations on the African continent), 4.1% (GBP) in TFG London (which includes the Phase Eight and Whistles brands), and the balance from TFG Australia (comprising the recently acquired Retail Apparel Group and G-Star Australia stores). This came off a high base of 16.9% for the corresponding prior period. Comparable store turnover growth in TFG Africa was 1%.
Headline earnings grew 5.6% to R1.1 billion (constant UK currency growth of 7.9%), excluding acquisition costs in respect of Australian Retail Apparel Group (RAG). Headline earnings per share, excluding acquisition costs, increased by 1.6% (constant UK currency growth of 3.9%) to 504,9 cents per share (496,8 cents per share in the previous period). Moreover, an interim cash dividend of 325,0 cents per share has been declared - a 1.6% increase.
According to Murray, TFG plans to open over 100 new outlets in the second half of the year and will continue focusing on working capital management and capital optimization.
The CEO said:
"Despite the political and economic uncertainty, we believe that continued commitment to our strategic objectives around growth, profit, customer and leadership development will support our efforts to achieve a reasonable result for the full year."
Operating from 3,809 outlets in 32 countries, TFG has 27 retail brands trading in clothing, jewellery, accessories, sporting and outdoor apparel/equipment, cellular goods and services and homeware. TFG opened 144 outlets during the period: 74 in TFG Africa, 46 in TFG London and 24 in TFG Australia. The Group continued its focus on optimising capital allocation and, as a result, closed 77 underperforming outlets (TFG Africa 30, TFG London 39, TFG Australia 8).
