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THE FOSCHINI GROUP LIMITED - December 2018 Trading Update

Release Date: 17/01/2019 15:00
Code(s): TFG     PDF:  
Wrap Text
December 2018 Trading Update

Reg. No.: 1937/009504/06
Code: TFG
ISIN: ZAE000148466

Trading Update

December 2018 Trading Update
TFG consolidated turnover increased by 8,3% for the December 2018 trading
month, compared to the December 2017 trading month, with solid performances
across all business segments. These are now all included on a fully comparable
basis for the December month.
TFG Africa turnover growth for the December trading month, coming off a high
base in the previous December, was 7,2% (same store turnover growth of 4,2%)
with growth of 10,2% in clothing (same store turnover growth of 7,0%), 7,5% in
homeware & furniture (same store turnover growth of 1,9%), -4,8% in cosmetics
(same store turnover growth of -4,8%), 0,0% in jewellery (same store turnover
growth of -0,2%) and -7,5% in cellphones (same store turnover growth of -8,1%).
Cash turnover grew by 6,5% and credit turnover growth was 8,2%.
TFG London turnover for the trading month of December, grew by 4,7% in GBP
while turnover in TFG Australia grew by 16,5% (AUD).

Nine month trading update
TFG consolidated turnover for the nine months to 29 December 2018 increased by
22,7% with turnover growth of 9,5% in TFG Africa (same store turnover growth of
6,3%), 42,0% (GBP) in TFG London (3,5% comparable*) and 78,7% (AUD) in TFG
Australia (15,6% comparable*). These growths were underpinned by strong Black
Friday trade as well as strong December trade across all the business segments.
The impact of Black Friday, in pulling forward what would have traditionally
been December sales, is becoming more pronounced, especially in certain
merchandise categories such as cosmetics and jewellery.

Turnover growths in the various merchandise categories for TFG Africa were as
follows: clothing 12,2% (same store growth 8,8%); homewares 8,4% (same store
growth 3,8%); cosmetics 1,2% (same store growth 0,9%); jewellery 3,6% (same
store growth 2,4%) and cellphones -1,8% (same store growth -3,0%). Cash
turnover growth was 10,6% and credit turnover grew by 8,1%.

Merchandise deflation for the nine-month period in TFG Africa averaged
approximately -4%.

Pro forma information used for the calculation of comparable* turnover growth
Unaudited pro forma management account information for Hobbs and RAG were used
in this announcement for illustrative purposes only to provide an indicative
nine-month comparable* turnover growth for the TFG London and TFG Australia
business segments. This pro forma information, because of its nature, may not
be a fair reflection of the Group’s results of operations, financial position,
changes in equity or cash flows.      There are no events subsequent to the
reporting date which require adjustment to the pro forma information.

The pro forma management account numbers used were:

                                   Nine months to     Nine months to
                                       Dec-17             Dec-18
                                         £m                 £m           % change
TFG London (nine months to
December 2017 excludes Hobbs
pre-acquisition)                              224,5              318,8            42,0%
Hobbs (Apr 2017 – Nov 2017)                    83,6
TFG London including Hobbs
(comparable growth)                           308,1              318,8           3,5%

                                   Nine months to     Nine months to
                                       Dec-17             Dec-18
                                        A$m                A$m           % change
TFG Australia (nine months to
December 2017 excludes RAG pre-
acquisition)                                  219,1              391,6          78,7%
RAG (Apr 2017 – Jul 2017)                     119,7
TFG Australia including RAG
(comparable growth)                           338,8              391,6          15,6%

The directors are responsible for compiling the unaudited pro forma financial
information in accordance with the JSE Limited Listings Requirements and in
compliance with the SAICA Guide on Pro Forma Financial Information. The
underlying information used in the preparation of the pro forma financial
information has been prepared using the accounting policies in place for the
period ended 30 September 2018.

This trading update as well as the pro forma management account information
have not been reviewed or reported on by the Company’s auditors.

Cape Town
17 January 2019

UBS South Africa Proprietary Limited

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