“2013 proved to be a challenging year for importers and retailers and yet another tough year for consumers,” Verimark said in a statement.
“In addition, South African consumers have experienced, and continue to experience, enormous pressure due to increased living expenses, which, together with South Africa’s high level of unsecured domestic debt, has resulted in a contraction in discretionary spend.”
Revenue for the year ended 28 February 2014 was down 5.2 per cent to 430.5 million rand from 454.1 million rand in 2013.
(READ MORE: Verimark's results reflect challenging environment)
Gross profit however increased to 173.3 million rand from 165.1 million rand in 2013, and profit before tax took the same turn with an increase to 23.4 million rand for the period under review from 15.2 million rand in 2013.
[DATA VMK:Verimark Holdings Limited] is a retail business based in South Africa that provides housewares, health and fitness, DIY, automotive, beauty and educational products.
Profit before tax increased to 23.4 million rand from 15.3 million rand in 2013, and headline earnings per share took a same turn at 16.9 cents from 8.4 cents in 2013. Basic earnings per share increased to 17 cents from 8.5 cents in 2013.
“Despite the macroeconomic limitations, the group is starting to see the benefits of the
last 24 months of centralising and consolidation paying off. This has allowed for much better control of operations and costs, which assisted the group to manage in a very tough economic environment, and has put us in a good position to take advantage of future growth opportunities,” Verimark explained.
Revenue for the group’s South Africa segment was recorded at 427.3 million rand for the period, followed by the group’s foreign segment reporting revenue at 3.4 million rand and the group elimination suffering a loss of 297 million rand. Total revenue for all segments amounted to 430.4 million rand for the period under review.
“All indications show that consumer spending is unlikely to show significant growth during the year ahead,” Verimark explained.
“We will continue on our strategic journey by ensuring that we remain product-focused as a business and defend our position as leading innovators.”