TFG (TFG) FY23 – Results Snapshot

Diluted HEPS down -4.0% y-y to 960cps with DPS down to 320cps (LY: 500cps).
Turnover growth +19.4% y-y boosted by Tapestry acquisition +15.2% excl. Tapestry).
TFG Africa impacted by loadshedding with comp. unit sales down -10% y-y and markdowns to clear excess stock. Loadshedding lost sales impact c. R1.5bn.
GPM dropped to 47.9% (FY22: 48.5%).
Expense growth of 20.0% y-y with the expense-to-sales ratio increasing from 43.7% to 43.9%.
OPM dropped from 11.2% in FY22 to 10.5% in FY23.
Gross debt increased substantially from R6.8bn in FY22 to R11.2bn in FY23 due to Tapestry acquisition, higher capex and working capital. Restructured its debt facilities in Africa, securing
R14.5bn in facilities (additional R2.8bn) on more favourable terms.
Cash dropped from R5.7bn in FY22 to R4.1bn in FY23.
FY24 focus on stock, margin and expenses.
FY24 stock purchases to be lower than FY23. Admin costs of R220m frozen.
Capex curtailed. Muted trade in first 2 months of FY24.