Truworths (TRU) Results Snapshot 1H22

Diluted HEPS 443.8cps (+31.6% y-y) and DPS of 300cps (1H21: 232cps). Dividend cover maintained at 1.5x. Sales growth +2.5% y-y, with Truworths Africa + 1.4% y-y and
Office UK +8.1% y-y (in GBP). Strong GPM improvement, increasing from 51.5% to 53.6%, with Truworths Africa’s GPM at 56.4% (1H21: 54.7%) and Office at 45.7% (1H21: 42.3%). Mainly due to lower promotional activity. Expenses to sales ratio improved from 36.6% to 34.2%, with lower depreciation on right-of-use assets, lower debtor costs, no impairments in current period and forex gains. Operating margin improved from 16.5% in 1H21 to 22.7% in 1H22.