Truworths swings back to profitability

Truworths swings back to profitability
Published: 13 March 2018 (807 Views)
TRUWORTHS Zimbabwe overturned its loss making position registering a profit after tax of $548 095 for the half year ended January 7, 2018 on the back of increased sales.

In the comparative period ended January 7, 2017 Truworths recorded a loss of $986 888.

In its financial report for the period under review, Truworths said the gross profit margin improved to 50,5% based on the increase in sales.

"The gross profit margin improved to 50,5% (2017: 38,1%) due to increased sales at full margin. Trading expenses excluding trade receivable costs decreased by 3,5%. An operating profit margin of 11,6% (2017: loss margin -20,2%) was achieved for the period," Truworths said.

The clothing company overturned losses from its three department stores recorded in the comparative 2017 period.

For Truworths stores, the company recorded an uptick of 18,6% in its business from a loss of 40,3%, Topics a 4,3% improvement from a loss of 43% and for its Number 1 stores an improvement of 24,2% from a loss of 31,7%.

Across the board, retail merchandise sales increased by 9,3% to $7,14 million from 2017's comparative of $6,53 million.

This was attributed to an increase in active accounts by 4,7% to 90 399 with 12 931 of these being instore credit card at period end.

This contributed to a 10,5% improvement in Truworths overall revenue to $8,6 million for the period under review from $7,78 million in the same period last year.

The net profit margin at the end of the half year was 6,36% showing that the company was in a profitable position going into the second half of its trading year.

Trading expenses were down 9,67% to $4,03 million from 2017's comparative of $4,46 million.

At the end of the period under review, Truworths current ratio showed that the company was had more than enough to cover its current liabilities if they come due at 1,31.
Going forward, the company is relying on bonuses to be paid by government to be able to improve consumer sales,as inflation is having a negative effect on consumer spending.

"However, trading conditions should remain buoyant with bonuses to be paid by the government in the period March to June. There is a positive sentiment in the country and hope for an improved economic environment," Truworths said.

Truworths warned that they it wasfacing shortages of foreign currency resulting in product shortages,and limiting sales growth.

- newsday

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Mnangagwa dismisses Chamisa's irritating noise

by newzimbabwe | 14 December 2018 | 67 Views

Chiwenga endorses Mnangagwa for 2023

by Staff reporter | 14 December 2018 | 61 Views

Where is Mohadi?

by ZimLive | 14 December 2018 | 77 Views

Government to solve shortage of medicine

by Mandla Ndlovu | 14 December 2018 | 90 Views

Mnangagwa's 'arrest and release on bail' program exposed

by Mandla Ndlovu | 14 December 2018 | 96 Views

Mutodi speaks on $500 000 'bribe' report

by Mandla Ndlovu | 14 December 2018 | 105 Views

Lumumba undresses Fadzayi Mahere

by Mandla Ndlovu | 14 December 2018 | 126 Views

School uniforms demo set for 18 December

by Mandla Ndlovu | 14 December 2018 | 87 Views

VP Chiwenga pours cold water on Presidential ambitions

by Mandla Ndlovu | 14 December 2018 | 131 Views

Mutsvangwa snubs ZANU PF Conference?

by Mandla Ndlovu | 14 December 2018 | 152 Views

Chamisa will eventually accept position

by Simba Rushwaya | 14 December 2018 | 169 Views

Tendai Biti relives court horror

by Mandla Ndlovu | 14 December 2018 | 132 Views

Mnangagwa speaks on Chivayo saga

by Mandla Ndlovu | 14 December 2018 | 141 Views

Motlanthe Commission report to be made public next week

by Mandla Ndlovu | 14 December 2018 | 115 Views

US. launches 'Prosper Africa' initiative to counter China's influence

by Staff reporter | 14 December 2018 | 124 Views

Dzamara and Linda Masarira clash

by Mandla Ndlovu | 14 December 2018 | 126 Views

WATCH: Live ZANU PF Conference

by Mandla Ndlovu | 14 December 2018 | 123 Views

Mphoko's son to spend Christmas in jail

by newzimbabwe | 14 December 2018 | 124 Views

Wise is he who looks ahead

by Mapozho Saruchera | 14 December 2018 | 104 Views

Behind the walls of MDC-ZANU PF negotiations

by Mmatigari | 14 December 2018 | 164 Views

MDC tripping itself

by Bevan Musoko | 14 December 2018 | 111 Views

PHOTOS: Choppies workers demonstrate

by Mandla Ndlovu | 14 December 2018 | 105 Views

ZANU PF conference, a necessary event

by Peacemaker Zano | 14 December 2018 | 90 Views

Lest we forget, soccer legends told

by Stanley Chirimbani and Richard Zimunya | 14 December 2018 | 93 Views

Temba Mliswa attends ZANU PF Conference

by Mandla Ndlovu | 14 December 2018 | 102 Views

Buyanga wants Zimbabwe in United Nations Security Council

by Staff reporter | 14 December 2018 | 118 Views

Zanu-PF urged to focus on fixing economic challenges

by Staff reporter | 14 December 2018 | 113 Views

Patient steals from nurse

by Staff reporter | 14 December 2018 | 145 Views

Banking sector posts 77% profit jump

by Staff reporter | 14 December 2018 | 113 Views

Wicknell Chivayo 'overpaid' in $5million Gwanda project

by Staff reporter | 14 December 2018 | 108 Views

'Zifa machinations' - Gift Banda arrested for 'corruption'

by Staff reporter | 14 December 2018 | 109 Views

Mphoko's son trial postponed

by Staff reporter | 14 December 2018 | 120 Views

Police probe Nkulumane carjack and robbery

by Staff reporter | 14 December 2018 | 104 Views

Suicide man announces imminent death

by Staff reporter | 14 December 2018 | 120 Views

Woman's maintenance claim thrown out

by Staff reporter | 14 December 2018 | 98 Views