Truworths International Limited · JSE:TRU
Truworths International — FY2024 Earnings Presentation
81 slides from Truworths International's earnings presentation, 2024
Slide 1: Group Annual Results for the 52 Weeks Ended 30 June 2024
GROUP ANNUAL RESULTS FOR THE 52 WEEKS ENDED 30 JUNE 2024
Slide 2: Agenda
INTRODUCTION FINANCIAL REVIEW ACCOUNT STRATEGIC INITIATIVES ENVIRONMENTAL, OUTLOOK QUESTIONS MANAGEMENT ASPIRATIONAL FASHION SOCIAL AND SUPPLY CHAIN GOVERNANCE CUSTOMERS RETAIL PRESENCE
Slide 3: Introduction
INTRODUCTION
Slide 4: Our Business Philosophy
OUR BUSINESS PHILOSOPHY WE ARE ALWAYS GUIDED BY OUR BUSINESS PHILOSOPHY WHICH DIRECTS OUR CONSISTENT FOCUS ON THE LONG-TERM PURPOSE AS A GUIDING LIGHT THROUGH GOOD AND BAD TIMES TO DELIVER OUR VISION OUR PURPOSE OUR VALUES OUR VISION defines the essence and fundamental ingredients of how we aim to s
Slide 5: Highlights – Group
HIGHLIGHTS GROUP • Strong cash generation, with cash realisation rate of 99% for the period • Returned R2.2 billion in dividends • Robust balance sheet with net debt declining from R850 million to R306 million at period end, after investment of R352 million in the new distribution centre (total to d
Slide 6: Highlights – Truworths
HIGHLIGHTS TRUWORTHS • New distribution centre construction is complete, and testing in progress with phased go-live planned from November 2024 to March 2025 • Significant progress in reinforcing each of our brand’s unique DNA to ensure improved differentiation and clarity for the buying teams • Bar
Slide 7: Highlights – Office UK
HIGHLIGHTS OFFICE UK • Sustained improvement in gross, EBITDA, trading and operating margins and overall financial performance • Highly cash generative • Cash generated from operations £67.7m • 8 new stores opened in Office, with a further 3 stores renovated and/or expanded • Further enhancements to
Slide 8: Operating Context
OPERATING CONTEXT • Challenging macro environment resulting in pressure on disposable income and low consumer confidence levels in SA and UK • Household consumption levels remained under pressure in SA during the first half of 2024 with growth in real terms turning negative for the first time in thr
Slide 9: Investments Made to Capitalise on Opportunities
INVESTMENTS MADE TO CAPITALISE ON OPPORTUNITIES • Modernisation of current stores and expanding store portfolio by redesigning existing and opening new stores in most sought-after locations • 5 Truworths Emporium Re-imagined, 3 Identity Megastores, 9 Kids Emporiums and 5 Context stores in Truworths
Slide 10: Financial Review Group
FINANCIAL REVIEW GROUP
Slide 11: Performance Against Targets and Peers
PERFORMANCE AGAINST TARGETS AND PEERS GROUP Truworths International Medium-term 2024 targets 52 weeks (published in Local International Pro forma^ FY23) benchmark* benchmark* Gross margin (%) 52.3 49 – 53 43.7 54.5 Operating margin (%) 22.0 18 – 23 12.8 12.7 Return on equity (%) 36 31 – 36 18 19 Ret
Slide 12: Financial Performance
FINANCIAL PERFORMANCE GROUP Change on Change on Jun 24 Jun 24 Jun 23 Jun 23 prior period prior period 52 weeks 52 weeks 52 weeks 52 weeks Reported Pro forma Reported Pro forma^ Reported Pro forma* % % Sale of merchandise (Rm) 20 664 20 664 19 894 19 894 4 4 Gross margin % 52.3 52.3 52.5 52.5 Profit
Slide 13: Financial Performance
FINANCIAL PERFORMANCE Normalisation of equity due to Normalisation of ROA due to GROUP impairment reversals and growing cash balance, unwinding of share buy-back impairment reversals and capex impact since COVID investment for the future RETURN ON EQUITY (ROE) AND RETURN ON ASSETS AND DPS AND DILUTE
Slide 14: ROIC vs WACC
ROIC vs WACC GROUP (%) Normalisation of ROIC due to Start of COVID- Post COVID-19 growing cash balance, 45 19 pandemic10 recovery period impairment reversals and capex investment for the future 35 35 28 25 25 24 15 15 14 14 12 11 5 (1) Jun 2020 Jun 2021 Jun 2022 (52 wks)* Jun 2023 Jun 2024 (5) ROIC
Slide 15: Statements of Financial Position
STATEMENTS OF FINANCIAL POSITION GROUP Change on Jun 2024 Jun 2023 prior period Rm Rm % Property plant and equipment 2 533 2 069 22 Right-of-use-assets 3 545 3 329 6 Goodwill and intangible assets 1 828 884 >100 Inventories 2 312 2 244 3 Trade and other receivables 5 419 5 546 (2) Assets held at fai
Slide 16: Capital Management
CAPITAL MANAGEMENT GROUP Jun 2024 Jun 2023 Net cash/(debt) Net cash/(debt) Net cash/(debt) to equity % Net cash/(debt) to equity % Group Rm (306) (3.2) (850) (11.1) Truworths Rm (2 133) (21.5) (1 876) (18.4) Office £m 79.3 60.3 42.8 79.1 Share buy-backs Dividends Funding Since January 2020 (includin
Slide 17: Cash Flow Analysis
Cash realisation rate 99% CASH FLOW ANALYSIS (2023: 74%) GROUP (Rm) 5 000 25 (477) 1 386 (967) 4 000 38 (184) 3 000 (1 101) (586) 2 000 4 658 3 629 (44) 1 000 1 898 (2 204) - (306) (850) (1 000) Net debt* at Cash Working Interest Dividend Interest Tax paid Capex Free Lease Capex Other Cash Dividends
Slide 18: Financial Review Truworths Africa
FINANCIAL REVIEW TRUWORTHS AFRICA
Slide 19: Financial Performance – Truworths Africa Pro Forma
FINANCIAL PERFORMANCE TRUWORTHS AFRICA – PRO FORMA Retail sales: Gross profit: Gross margin: EBITDA margin: R14 530m R7 536m 54.9% 31.1% 3% 4% Jun 2023 Jun 2023 Jun 2023 Jun 2023 R15 006m R7 873m 55.4% 31.7% Operating Profit before Profit Trading margin: margin: 22.5% finance costs and tax: before t
Slide 20: Income Statement – Truworths Africa Pro Forma
INCOME STATEMENT TRUWORTHS AFRICA – PRO FORMA ^ Pro forma current year figures Jun 2024 Jun 2023 exclude the following: 52 weeks 52 weeks Change on • foreign exchange losses to Pro forma^ Pro forma* prior period the value of R53 million; and Rm Rm % • a reduction in other operating Sales of merchand
Slide 21: Income Statement – Truworths Africa Reported
INCOME STATEMENT TRUWORTHS AFRICA – REPORTED Jun 2024 Jun 2023 52 weeks 52 weeks Change on Reported Reported prior period Rm Rm % Sales of merchandise 13 723 14 204 (3) Cost of sales (6 187) (6 331) (2) Gross profit 7 536 7 873 (4) Other income 459 762 (40) Trading expenses (6 175) (6 057) 2 Depreci
Slide 22: Divisional Retail Sales
DIVISIONAL RETAIL SALES TRUWORTHS AFRICA Jun 2024 Jun 2023 change on 52 weeks 52 weeks prior year Rm Rm (%) Truworths ladieswear 5 140 5 383 (5) Truworths menswear 3 619 3 734 (3) Truworths kids 1 430 1 522 (6) Other# 2 052 1 947 5 Truworths emporium 12 241 12 586 (3) Identity 2 289 2 420 (5) Truwor
Slide 23: Stores and Trading Space
STORES AND TRADING SPACE TRUWORTHS AFRICA Trading space Stores Stores ‘000 m2 June 2023 Store movement Net June 2024 June 2024 Truworths 350 1 4 3 353 291 Identity 251 1 4 3 254 69 Truworths Man 34 1 1 35 12 Uzzi 36 4 (4) 32 3 Sync 19 7 7 26 2 Office London 19 3 3 22 2 YDE 20 1 (1) 19 6 Earthchild 1
Slide 24: Sales Densities Trend
SALES DENSITIES TREND TRUWORTHS AFRICA R per m2 45 000 39 359 40 000 37 350 37 648 36 317 36 510 35 256 35 682 34 857 34 649 35 000 32 357 30 000 25 000 20 000 15 000 10 000 Jun 2015 Jun 2016 Jun 2017 Jun 2018 Jun 2019 Jun 2020 Jun 2021 Jun 2022 Jun 2023 Jun 2024 (52 wks)* Sales density * Weeks 2 -
Slide 25: Merchandise Inflation Trend
MERCHANDISE INFLATION TREND TRUWORTHS AFRICA RSP Inflation (%) 20.0 15.0 10.0 5.0 - (5.0) 25
Slide 26: Gross Profit Trend
GROSS PROFIT TREND TRUWORTHS AFRICA (Rbn)) (%)) 9.0 70 8.0 60 7.0 55.6 56.7 55.4 54.9 54.1 50 6.0 5.0 40 4.0 30 3.0 20 2.0 10 1.0 6.5 6.7 7.4 7.9 7.5 - - Jun 2020 Jun 2021 Jun 2022 Jun 2023 Jun 2024 (52 wks)* Gross profit Gross margin * Weeks 2 - 53 (5 July 2021 – 3 July 2022) 26
Slide 27: Analysis of Trading Expenses
ANALYSIS OF TRADING EXPENSES TRUWORTHS AFRICA Change on Jun 2024 Jun 2023 prior period Rm Rm % Depreciation and amortisation 1 170 1 139 3 Employment costs 2 019 1 915 5 Occupancy costs 668 604 11 Trade receivable costs 1 310 1 265 4 Other operating costs 1 008 1 134 (11) Trading expenses 6 175 6 05
Slide 28: Analysis of Trading Expenses (Continued)
ANALYSIS OF TRADING EXPENSES TRUWORTHS (CONTINUED) • Depreciation in respect of PPE and software decreased 5%. 3% • Right-of-use assets depreciation increased 6% due to an increase in the Depreciation and number of leases accounted for under IFRS 16 (including the new DC) amortisation compared to t
Slide 29: Analysis of Trading Expenses (Continued)
ANALYSIS OF TRADING EXPENSES TRUWORTHS (CONTINUED) • Net bad debt and related costs, excluding the movement in the expected credit loss (ECL) allowance, decreased R189 million: 4% • net bad debt (after debt sold) decreased 16% (R155 million), due to enhancements to the Group’s existing charge-off h
Slide 30: Profit Before Finance Costs and Tax
PROFIT BEFORE FINANCE COSTS AND TAX TRUWORTHS AFRICA (Rbn)) (%)) 4.0 40 35 34 3.5 35 32 32 31 3.0 30 2.5 27 25 26 22 23 23 2.0 20 1.5 15 1.0 10 0.5 5 2.6 2.9 3.5 3.7 3.2 - - Jun 2020 Jun 2021 Jun 2022 Jun 2023 Jun 2024 (52 wks)* Profit before finance costs and tax EBITDA margin Operating margin * We
Slide 31: Capital Expenditure
CAPITAL EXPENDITURE TRUWORTHS AFRICA Actual Actual Committed Change on Jun 2024 Jun 2023 Jun 2025 prior period Rm Rm Rm % Store renovations and 236 300 243 (21) development Computer infrastructure 41 34 46 21 and software Land, buildings and 1 4 8 (75) refurbishment Motor vehicles 2 3 3 (33) Distrib
Slide 32: Cash Flow Analysis
Cash realisation rate 100% CASH FLOW ANALYSIS (2023: 73%) TRUWORTHS AFRICA (Rm) 2 500 25 (434) 1 318 (699) 1 500 Includes R352 million for new DC 18 (154) (822) 1 299 500 (454) 48 71 ( 500) 3 101 (1 876) (2 204) (2 133) (1 500) (2 500) Net debt* at Cash Working Interest Dividend Interest Tax paid Ca
Slide 33: Financial Review Office UK
FINANCIAL REVIEW OFFICE UK
Slide 34: Financial Performance – Office UK Pro Forma
FINANCIAL PERFORMANCE OFFICE UK – PRO FORMA Retail sales: EBITDA: Gross margin: EBITDA margin: £290.4m 11% £74.3m 25% 47.0% 25.2% Jun 2023 Jun 2023 Jun 2023 Jun 2023 £262.1m £59.4m 45.2% 22.4% Profit before Profit Operating finance costs and tax: before tax: Trading margin: margin: £61.4m 25% £59.2m
Slide 35: Income Statement – Office UK Pro Forma
INCOME STATEMENT OFFICE UK – PRO FORMA Jun 24 Jun 23 Change on Pro forma^ Reported prior period £m £m % Sale of merchandise 294.3 265.4 11 Cost of sales (155.9) (145.4) 7 ^ Pro forma current year figures exclude the following: Gross profit 138.4 120.0 15 • partial reversal of Other income 6.4 9.5 (3
Slide 36: Income Statement – Office UK Reported
INCOME STATEMENT OFFICE UK – REPORTED Jun 24 Jun 23 Change on Reported Reported prior period £m £m % Sale of merchandise 294.3 265.4 11 Cost of sales (155.9) (145.4) 7 Gross profit 138.4 120.0 15 Other income 7.2 9.5 (24) Intangible asset impairment reversal 43.2 - 100 Trading expenses (87.1) (81.1)
Slide 37: Geographic Sales and Number of Stores
GEOGRAPHIC SALES AND NUMBER OF STORES OFFICE UK Change Retail sales Retail sales on prior Number of Number of Jun 2024 Jun 2023 period stores* stores* £m £m % Jun 2024 Jun 2023 United Kingdom 276.8 246.8 12 79 74 Republic of Ireland 13.6 11.3 20 7 7 Germany 0.0 4.0 (100) - - Total 290.4 262.1 11 86
Slide 38: Stores
STORES OFFICE UK Stores Stores June 2023 Store movement Net June 2024 Office standalone stores 67 3 7 4 71 Offspring standalone stores 3 1 1 4 Office concession stores 1 1 - 1 Offspring concession stores 10 4 - 10 TOTAL 81 5 86 STORES CLOSED STORES OPENED 38
Slide 39: Sales Densities Trend
SALES DENSITIES TREND OFFICE UK £ per m2 17 000 15 887 15 694 15 000 13 000 12 367 11 532 11 000 10 400 9 000 7 435 7 000 5 000 Jun 2019 Jun 2020 Jun 2021 Jun 2022 Jun 2023 Jun 2024 (52 wks)* * Weeks 2 - 53 (5 July 2021 – 3 July 2022) 39
Slide 40: Gross Profit Trend
GROSS PROFIT TREND OFFICE UK (£m)) (%)) 47.0 50 45.2 140 44.2 41.5 38.7 120 40 100 30 80 60 20 40 10 20 92.1 81.5 99.1 120.0 138.4 - - Jun 2020 Jun 2021 Jun 2022 Jun 2023 Jun 2024 (52 wks)* Gross profit Gross margin * Weeks 2 - 53 (5 July 2021 – 3 July 2022) 40
Slide 41: Analysis of Trading Expenses
ANALYSIS OF TRADING EXPENSES OFFICE UK Change on Jun 2024 Jun 2023 prior period £m £m % Depreciation and amortisation 12.9 10.3 25 Employment costs 29.7 27.5 8 Occupancy costs 17.1 16.6 3 Other operating costs 27.4 26.7 3 Trading expenses 87.1 81.1 7 41
Slide 42: Analysis of Trading Expenses (Continued)
ANALYSIS OF TRADING EXPENSES OFFICE UK (CONTINUED) • Depreciation on PPE and software increased 25% due to increased capital spend, mainly on store development. 25% • Depreciation on right-of-use assets increased 26% due to net Depreciation and impairment reversals (December 2022 £3.7m, June 2023 £
Slide 43: Trading Profit
TRADING PROFIT OFFICE UK (£m)) (%)) 65 30 55 23.5 25 20.6 45 18.6 20 35 15.5 18.2 16.5 15 16.0 25 10.2 10 15 5 5 3.2 20.0 35.8 43.8 53.5 Jun 2020^ Jun 2021^ Jun 2022^ (52 wks)* Jun 2023^ Jun 2024^ - (5) (10.0) (15) (5) (4.2) Trading profit EBITDA margin Trading margin ^ Adjusted to exclude goodwill
Slide 44: Capital Expenditure
CAPITAL EXPENDITURE OFFICE UK Actual Actual Committed Change on Jun 2024 Jun 2023 Jun 2025 prior period £m £m £m % Store renovations and 6.5 2.6 7.3 >100 development Distribution facilities 0.3 - 0.4 100 Computer infrastructure 1.1 1.3 2.3 (15) and software Total 7.9 3.9 10.0 >100 44
Slide 45: Cash Flows
Cash realisation rate 96% CASH FLOWS (2023: 79%) OFFICE UK (£’000) 120 000 2 871 (1 819) 928 (11 614) 100 000 (1 285) (12 126) (5 764) 80 000 (651) (810) 66 751 60 000 98 648 40 000 79 297 80 758 20 000 42 816 - Net cash* at Cash Working Interest Finance Tax Capex Free Lease Capex Cash Other Acquisi
Slide 46: Account Management
ACCOUNT MANAGEMENT
Slide 47: Overview
OVERVIEW • 2.9 million active account customers (i.e. they are indebted to us) with growth of 2.6 % in the number of customers able to shop (i.e. they are not in arrears) on the active trade receivables portfolio • Expected credit loss allowance decreased from 20.6% in prior period to 20.3% (active
Slide 48: External Credit Environment
EXTERNAL CREDIT ENVIRONMENT Deterioration in up-to-date accounts Significant deterioration in Mortgage and Credit Facility book quality 100% 90.8% 91.5% 91.8% 91.2% 91.6% 91.4% 91.2% 90.8% 91.5% 90.3% 87.6% 90% 89.1% 89.1% 87.0% 87.8% 86.6% 86.4% 80% 84.1% 83.2% 81.7% 82.4% 82.1% 79.8% 77.2% 75.6% 7
Slide 49: External Credit Environment
EXTERNAL CREDIT ENVIRONMENT Credit Granted (Rand Value) All high-level industry segments are down on last year with Mortgages most affected down 21.7% and un-secured credit down 7.8% compared to last year Y-on-Y 70 Billions 62.7 -7,7% 57.9 60 -21,7% 50.3 50 50.1 47.5 -1,1% 45.3 40 0,3% -2,7% 26.8 -7
Slide 50: External Credit Environment
EXTERNAL CREDIT ENVIRONMENT TransUnion Credit Index Q2 2024 CCI: Key Facts and Figures TransUnion SA Consumer Credit Index The TransUnion SA Consumer Credit Index (CCI) rose to an 65% average score of 47 as part of a broader recovery from all-time lows of 39 reached in Q2 of 2023. 60% 55% The CCI ha
Slide 51: Trade Receivable Statistics
TRADE RECEIVABLE STATISTICS TRUWORTHS Jun Jun 2024 2023 Number of active accounts (000's) 2 870 2 799 Change in number of active accounts (%) 3 6 Active gross trade receivables (before expected credit losses) (Rm) 6 426 6 561 Change in active gross trade receivables (before expected credit losses) (
Slide 52: New Account Applications by Age
NEW ACCOUNT APPLICATIONS BY AGE TRUWORTHS 8% 25% 16% 14% 19% 18% 18 - 24 25 - 29 30 - 34 35 - 39 40 - 49 50+ 52
Slide 53: Strategic Initiatives: Aspirational Fashion
STRATEGIC INITIATIVES ASPIRATIONAL FASHION
Slide 54: Aspirational Fashion
ASPIRATIONAL FASHION • Drive a wider merchandise offering of core replenishment styles in Truworths • Focus on categories that show exceptional opportunities for growth relative to our market share • Continue to build brand equity of our own in-house brands to counteract the threat of online players
Slide 55: Strategic Initiatives: Supply Chain
STRATEGIC INITIATIVES SUPPLY CHAIN
Slide 56: Supply Chain
SUPPLY CHAIN • Capitalise on the benefits of the new Truworths DC • Enable greater volumes of replenishment and part allocation of merchandise to stores • Consolidate four distribution centres into one state of the art facility • Develop internal design and manufacturing capability to improve abilit
Slide 57: Strategic Initiatives: Customers
STRATEGIC INITIATIVES CUSTOMERS
Slide 58: Customers – Omni-channel
CUSTOMERS OMNI-CHANNEL • Improve omni-channel experience through personalised and appropriate content for users • Complete the implementation of our new leading-edge CRM campaign system and enhance our optimisation analytics by leveraging the vast amount of data we have • Critically review our e-com
Slide 59: Customers – Credit
CUSTOMERS CREDIT • Implement decision optimisation in every area of the portfolio • Leverage account and loyalty base to improve decision-making and predictive model accuracy • Enhance strategies for the rehabilitation of delinquent accounts • Ensure consistent collection communication to customers
Slide 60: Strategic Initiatives: Retail Presence
STRATEGIC INITIATIVES RETAIL PRESENCE
Slide 61: Retail Presence
RETAIL PRESENCE • Continue to grow and develop new brands • Enhance the Truworths Re-imagined concept and roll out these stores where appropriate • Capitalise on new, expanded & refurbished store opportunities in Office 61
Slide 62: Environmental, Social and Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
Slide 63: Commitment to the UN Sustainable Development Goals
COMMITMENT TO THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS Continued best practice alignment with the United Nations Sustainable Development Goals, specifically these 7: NO GOOD HEALTH QUALITY POVERTY AND WELL-BEING EDUCATION End poverty in all its forms Ensure healthy lives and Ensure inclusive
Slide 64: Supporting UN SDGs – No Poverty
SUPPORTING UNITED NATIONS’ SDGs End poverty in all its forms everywhere Donated more than 425 000 garments and Over 740 000 garments donated to Taking Small and medium-sized black-owned 189 000 metres of fabric with a value of Care of Business since 2019 in support of businesses supported through th
Slide 65: Supporting UN SDGs – Good Health and Well-being
SUPPORTING UNITED NATIONS’ SDGs Ensure healthy lives and promote well-being for all at all ages R23 million invested in Funded the upgrade of the Through a long-standing 67% of employees covered by a upgrading 24 public healthcare paediatric ward at Greys partnership with The Reach for healthcare pl
Slide 66: Supporting UN SDGs – Quality Education
SUPPORTING UNITED NATIONS’ SDGs Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all Invested 11 706 employees 2 610 employees 50 employees on Funded upgrades R129 million in participated in 253 participated in bursary programme at two LEAP employee sk
Slide 67: Supporting UN SDGs – Gender Equality
SUPPORTING UNITED NATIONS’ SDGs Achieve gender equality and empower all women and girls 74% of employees in SA are Zero tolerance policy to any Supporter of 16 Days of Financial support provided to female, including 30% of top form of gender-based violence Activism against GBV various charities nati
Slide 68: Supporting UN SDGs – Decent Work and Economic Growth
SUPPORTING UNITED NATIONS’ SDGs Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all 12 007 employees 45% of Truworths’ Signatory to Retail - Funded generators for Loan funding provided across the Group merchandise produced Clothing, Te
Slide 69: Supporting UN SDGs – Responsible Consumption
SUPPORTING UNITED NATIONS’ SDGs Ensure sustainable consumption and production patterns 4.4 million plastic Recycled 99 tonnes Recycled 585 Volume of Paper and Truworths clothing hangers of plastic tonnes of carboard cardboard boxes stationery shopping bags reused cartons purchased consumption made f
Slide 70: Supporting UN SDGs – Climate Action
SUPPORTING UNITED NATIONS’ SDGs Take urgent action to combat climate change and its impacts Store electricity Electricity meters LED lighting Water consumption New distribution Emissions reducing consumption installed in 564 installed in about decreased by 6.9% centre (DC) certified water, energy an
Slide 71: Governance
GOVERNANCE • Ranked in top 10 of EY Excellence in Integrated Reporting awards for 17th consecutive year, the only JSE-listed company to achieve this acknowledgement • ranked in the ‘Excellent’ category since 2003 • ESG and transformation • Continued improvement in B-BBEE score • Rolled out refreshed
Slide 72: Outlook
OUTLOOK
Slide 73: Outlook – Sales and Trading Space
OUTLOOK SALES AND TRADING SPACE • Group retail sales for the first nine weeks of the 2025 financial period compared to the first nine weeks of the 2024 financial period increased by 5.0% • up 2.5% in Truworths • up 11.2% in Office (in Sterling) • Group trading space is projected to increase by 2% fo
Slide 74: Outlook – Truworths
OUTLOOK TRUWORTHS • While consumer disposable income is expected to remain constrained in the short term, our expectation is that retail spend will be bolstered by • anticipated reduction in interest rates in 2024 and 2025, • moderating inflationary pressures and • forecasted positive GDP growth enh
Slide 75: Outlook – Office UK
OUTLOOK OFFICE UK • Expected benefits to consumer spending in the year ahead include • steadily declining inflation rate • potential further interest rate relief • improving consumer confidence • Office will continue to leverage the strength of its relationships with the world’s leading footwear bra
Slide 76: Questions
QUESTIONS
Slide 77: Investor Relations
INVESTOR RELATIONS If you have any further questions, kindly send an e-mail to: InvestorRelations@truworths.co.za 77
Slide 78: Disclaimer
DISCLAIMER This announcement contains certain forward-looking statements with respect to the financial condition and results of operations of Truworths International Limited and its group companies, which by their nature involve risk and uncertainty because they relate to events and depend on circum
Slide 79: Appendices
APPENDICES
Slide 80: Summarised Group Statements of Financial Position
SUMMARISED GROUP STATEMENTS OF FINANCIAL POSITION at 30 Jun at 2 Jul 2024. 2023 Audited Audited Note Rm Rm ASSETS Non-current assets 8553 6 716 Property, plant and equipment 2 533 2 069 Right-of-use assets 3545 3 329 Intangible assets 4 1534 590 Goodwi 294 294 Loans and receivables 28 77 Assets held
Slide 81: Summarised Group Statements of Comprehensive Income
SUMMARISED GROUP STATEMENTS OF COMPREHENSIVE INCOME 52 weeks 52 weeks to 30 Jun to2Jul 2024 2023 Audited Change Audited Note Rm % Rm Revenue 10 22 436 21992 Sale of merchandise 10 20 664 3.9 19 894 Cost of sales (9 859) (9 445) Gross profit 10 805 3.4 10 449 Other income 10 562 939 Intangible asset
Truworths International — FY2024 Earnings Presentation on 6ix