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Business update
Truworths International Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1944/017491/06)
JSE Code: TRU
NSX Code: TRW
ISIN: ZAE000028296
BUSINESS UPDATE
In its 2016 Preliminary Report published on 18 August 2016, Truworths International Limited
(the ‘Group’) indicated that it expected the trading environment to remain challenging
during the 2017 financial period owing to the high base established in the previous year,
slow economic growth, high inflation in product prices due to the weakened currency, and
the significantly negative impact of the new affordability assessment regulations introduced
in September 2015.
Against this background and rising inflation in the economy, especially in food prices, which
is placing further pressure on consumers, the Group announces that Group retail sales for
the first 18 trading weeks (i.e. from 27 July 2016 to 30 October 2016 of the 2017 financial
period) (‘the period’) increased by 39% to R6.2 billion relative to the corresponding prior 18-
week period (29 June 2015 to 1 November 2015) (‘the prior period’).
Credit sales which comprised 49% of retail sales (2016: 69%) for the period, decreased by
1% and cash sales increased by 130% relative to the prior period. These results are
inclusive of the non-comparable retail sales of Office, which was acquired with effect from
4 December 2015. The reason for the material change in the credit:cash sales metric is that
Office generates cash sales only.
Excluding the retail sales recorded by Office, which was acquired subsequent to the prior
period-end, retail sales for the period decreased by 1% to R4.4 billion relative to the prior
period (prior period growth 16%, excluding acquisitions), cash sales decreased by 1% (prior
period growth 14%, excluding acquisitions) and credit sales decreased by 1% (prior period
growth 16%, excluding acquisitions). Credit sales comprised 70% of these retail sales for
the period. Like-for-like store retail sales, which exclude those attributable to Office,
decreased by 5%, whilst product inflation averaged 16%.
Office recorded retail sales for the period of £97.3 million (R1.8 billion), up 1.4% relative to
the prior period’s £95.9 million.
The Group’s trade receivables book increased by 6% to R5.7 billion relative to the prior
period-end.
Shareholders are advised that this business update does not constitute an earnings forecast,
and that the financial information provided herein has neither been reviewed nor reported on
by the Group’s external auditors. The Group’s interim results for the 26-week period ending
25 December 2016 are scheduled for release on or about Thursday, 16 February 2017.
3 November 2016
Cape Town
JSE Sponsor: One Capital
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