Weak results with diluted HEPS down 6.0% y-y to 1 178cps.
Turnover growth +18.0% y-y (comp sales +3.4%) boosted by
Studio 88 acquisition. Sales excl. Studio 88 up 2.1% y-y. Sales growth
impacted by loadshedding and disruptions due to its ERP
implementation. GPM drop from 40.7% in FY22 to 39.2% in FY23 due to higher
markdowns, higher input cost and dilution from acquisitions.
Expenses to sales ratio increased from 26.6% to 27.3% with expense growth of 21.2% y-y (+6.7% excl Studio 88).
Operating margin drop from 18.5% in FY22 to 15.6% in FY23.
Dividend of 760cps (FY22: 807cps) on stable cover of 1.6x.
Significant increase in inventories (+85.1% y-y) due to acquisition.
Excl Studio, stock growth still high at +18.6% (due to trade
disruptions). Cash position drop from R4.6bn to R1.4bn, remains debt free.
R3.6bn was paid for Studio 88 in 2H23.
