Truworths (TRU) 1H24 – Results Snapshot

Diluted HEPS of 505cps (+3.6% y-y) and DPS of 332cps in 1H24
(1H23: 320cps). Dividend cover maintained at 1.5x.
Sales growth +8.2% y-y, with Truworths Africa down -0.3% y-y
and Office UK +15.6% y-y (in GBP).
GPM improved slightly from 53.5% to 53.6%, with Truworths
Africa’s GPM higher at 56.6% (1H23: 56.0%) and Office also
higher at 47.4% (1H23: 46.6%).
Expenses-to-sales ratio increased from 36.9% to 37.4%, due to
depreciation (+12.0% y-y), staff costs (+12.9% y-y) and debtor
costs (+8.9% y-y).
Operating margin dropped from 24.7% in 1H23 to 24.5% in 1H24.
Low growth in Debtors book of 1.6% y-y. Doubtful debts
allowance improved from 20.7% to 19.7%. Net bad debt to book
was high at 20.4% (1H23: 13.4%).
Cash increased considerably to R1.4bn (1H23: R482m) while
gross debt stable at R1.5bn (1H23: R1.3bn).
Sales in first 7 weeks of 2H24 up 3.8% y-y, with TRU Africa
-0.5% y-y and Office UK +1.3% y-y (in GBP).