Diluted headline loss per share (continuing ops) widened to -417cps (LY: -166cps). Turnover growth (cont. ops) 1.9% y-y (comp growth 4.6% y-y).
GPM down 95bps to 19.6% due to global supply chain issues, sales mix and inflationary pressure.
OPM drop from 2.1% to 1.0%. Retrenchment cost and restructure cost of R206m.
No dividend declared.
Debt continues to grow, gross debt R11.3bn (LY: R9.3bn). Equity dropped from R1.8bn to R1.3bn. Likely reason for buyout offer.
Walmart Buyout offer of remaining shares at R62/share, would delist if deal concluded.
Our Target Price set in April is R62.
CEO succession – Mitch Slape to be succeeded by COO Jonathan Molapo in Jan 2023.
