Foschini performs despite tough credit market - CNBC Africa

Foschini performs despite tough credit market


by admin 0

Foschini store. PHOTO: Tyger Valley Mall

“The group produced a solid result for the year in a difficult trading environment characterised by the extremely challenging credit market,” said the group in a statement.

The group’s total retail turnover increased by 9.8 per cent to 14.2 billion rand while cash sales rose by 15.9 per cent.

The group’s total headline earnings per share (HEPS) increased by 5.9 per cent to 908.9 cents while diluted HEPS was up six per cent to 902.7 cents. This resulted in a final dividend of 293 cents per share being declared, an 8.5 per cent increase from the previous period.  

(READ MORE: Foschini reports 6.66 billion rand H1 turnover)

The group’s operating margin from continuing operations for the year however reduced from 18.7 per cent to 17.9 per cent primarily due to credit market conditions.

In terms of expansion, Foschini grew their trading space by opening 165 new stores and closing 33. They group currently operates out of 2,111 stores, a 6.1 per cent increase in trading area.

(READ MORE: S.Africa's Foschini expands into Ghana, but waiting on Kenya)

The group also recently sold their consumer finance business, RCS Group, to BNP Paribas Personal Finance, France's largest bank . The transaction is expected to be effective as of the 31 July 2014.

(READ MORE: BNP Paribas to buy S.African unsecured lender for US$253 million)