Truworths (TRU) FY22 Results Snapshot

Strong results with diluted HEPS 770.8cps (+49.2% y-y) and DPS
of 505cps (FY21: 350cps). Dividend cover maintained at 1.5x.
Sales growth +6.6% y-y (on 52-week basis), with Truworths Africa
+ 5.0% y-y and Office UK +14.2% y-y (in GBP).
Strong GPM improvement, increasing from 51.0% to 53.5%, with
Truworths Africa’s GPM at 56.7% (FY21: 54.1%) and Office at
44.2% (FY21: 41.5%). Mainly due to lower markdowns.
Expenses to sales ratio improved from 39.4% to 36.9%, with
lower depreciation on right-of-use assets, rates and rent relief for
Office and forex gains.
Operating margin improved from 13.8% in FY21 to 20.2% in
Debtors book grew by 9.4% y-y. Doubtful debts allowance drop
from 23.4% in FY21 to 20.7% in FY22.
Cash of R138m (FY21: R923m) and gross debt of R702m (FY21:
Sales in first 8 weeks of FY23: TRU Africa up by 12.8% y-y
(+9.1% excl unrest). Office UK sales +11.0% y-y (in GBP).