Lewis (LEW) FY24 – Results Snapshot

Diluted HEPS 895.8cps (+7.3% y-y).
Revenue growth of +9.8% y-y driven by growth in the Traditional segment (+11.4% y-y).
Merchandise GPM up 250bps to 43.1%.
Expense growth 15.1% y-y with expense-to-sales ratio up from 56.5% to 59.2%.
OPM increased by 20bps to 8.4%
Dividend of 500.0cps (FY23: 413.0cps).
Net cash declined to -R201.3m (FY23: -R185.5m)
Group expanded its store base to 869 with net additions of 29.
Pressure on consumers’ disposable income from high energy, food, fuel and borrowing costs continued to constrain the Group’s cash sales, impacting the performance of UFO.
Impairments and capital items totalled R65.4 million compared to R102.2 million in the prior year. The remaining goodwill of UFO of R59.9 million was impaired.
The group repurchased 4.2 million shares at a cost of R170.0m during the year at an average price of R40.82 per share.
Debtors’ impairment provision was increased from 36.0% to 37.5%.