Diluted HEPS of 113cps (1H25: 164cps), down 30.9% y-y. The decline in HEPS is due to an increase in issued shares after IPO.
DPS of 45.3cps (high prior-year dividend was pre-IPO dividend).
Turnover growth 13.9% y-y, with like-for-like growth of 5.3% y-y.
Internal inflation was -0.7% with high space growth of 9.7% y-y.
GPM stable at 20.3%, with reduced POS margin offset by improved supply chain efficiencies.
Expenses up by 14.3% y-y with the expense-to-sales ratio increasing from 17.0% to 17.1%. High expense growth due to new stores, costs as a listed entity, and IPO admission award.
Trading profit increased by 15.1% y-y, and the trading margin was stable at 4.1%.
Capex spend of R528m (1H25: R300m) with capex-to-sales ratio of 2.3% (1H25: 1.5%).
Net cash improved from R219m in 1H25 to R780m in 1H26.
Outlook – On track to open 60 stores in FY26. Momentum picked up in July-August, and remained strong in the 6 weeks post period end.
Board anticipates some margin pressure relative to 5.4% FY25 trading margin, but depends on 2H26 trading.
