Half Year 2024 Truworths International Ltd Earnings Call Transcript
Key Points
- Truworths International Ltd (JSE:TRU) has maintained a robust balance sheet with a net cash flow and net debt of only ZAR124 million.
- The company has a diversified earnings and customer base, with significant contributions from both South Africa and the UK.
- Truworths International Ltd (JSE:TRU) has become a truly omnichannel business, with strong e-commerce performance, particularly in the UK where over 40% of sales are online.
- The company has a strong demand for its credit offering, with approximately 3 million active account customers and 20 million loyalty customers.
- Office UK, a subsidiary of Truworths International Ltd (JSE:TRU), has shown a significant turnaround since COVID-19, with strong support from brands and profitable new and modernized stores.
- Truworths International Ltd (JSE:TRU) faced several challenges in South Africa, including civil unrest, currency depreciation, flooding, load shedding, and port congestion.
- The company's sales growth was poor, with top-line sales growth being a significant issue.
- Employment costs and trade receivables increased by 8% and 9% respectively, impacting overall expenses.
- The company experienced shipping delays and stock shortages, particularly affecting sales in January and February.
- Bad debt increased significantly by 54% due to the provision last year, reflecting the challenging credit environment.
Good afternoon, everybody. Welcome to our Truworths International half year results presentation. With me, of course, my colleagues Emanuel Cristaudo; and Sarah Proudfoot, Joint Deputy CEO's; and Reon Smit, who's the director in charge of Finance. And will go through our normal presentation in the normal format that most of you are used to and are trying to do it as quickly as I can so that we have time for questions. I'm going to turn to finish to Blocket we can. Just on the one at the moment and there's much more content in the presentation that I'm going to talk to, but you're going to be able to see it online after the presentation and you'll get more information from that.
If there's questions as usual, I will say to send questions to on the web. Firstly on to the [check] the group. So we can respond during the question time, but also you can always e-mail our Investor Relations, e-mail address, and we respond, as you all know, but within 24 hours.
So normal format and some summarized principles
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