| Mon 5 Sep 2011, 13:15 | | TFG/TFGP - The Foschini Group Ltd - Statement by the CEO |
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TFG/TFGP - The Foschini Group Ltd - Statement by the CEO
The Foschini Group Ltd (formerly Foschini Limited) - Statement by the CEO at
the Annual General Meeting
Registration number 1937/009504/06
Share codes: TFG - TFGP
ISIN codes: ZAE000148466 - ZAE000148516
STATEMENT BY THE CEO
At TFG`s 74th Annual General Meeting held today, CEO Doug Murray updated the
meeting as follows:
"RESULTS FOR 2011
Having experienced improved consumer spending, as a result of our major
strategic initiatives, combined with a more positive consumer sentiment, the
catalyst of which was the 2010 FIFA World Cup, the group produced a
favourable result for 2011.
After three very difficult years from 2008 to 2010, there is evidence that
the economic cycle has turned and that 2011 was the start of the upturn.
The first half of the year produced turnover growth of 12,5% with an
increase in HEPS of 16,9% whilst the second half gained increased momentum
with turnover growth of 18,1%. For the year as a whole, turnover increased
by 15,5% while headline earnings per share increased by 21,3%. Our total
dividend for the year increased by 21,5% to 350 cents per share.
PROSPECTS FOR THE 2012 FINANCIAL YEAR
I would now like to comment briefly on the group`s prospects for 2012.
*We expect the benefits of our strategic initiatives and the more positive
consumer sentiment to continue in this financial year, but are mindful of
the current inflation environment, the potential impact on interest rates
and the current fragility of international markets
*In line with our strategy of investing for long-term growth, we will
continue to open new stores in certain of our formats and we anticipate
increasing trading space by approximately 7% in the current year.
*Trading conditions for the first five months of this financial year have
been encouraging and above expectation, notwithstanding the inflated World
Cup base. Total sales have grown by 17,3% over the previous period with
same stores sales growth of 10,5%.
*RLC statistics clearly indicate that we are gaining market share.
Growths in the various merchandise categories are as follows:
- Clothing: 18,7%
- Jewellery: 6,2%
- Cosmetics: 9,7%
- Cellphones: 28,1%
- Homewares: 15,4%
*Our retail debtors` book is performing satisfactorily in the current
climate.
*Our RCS subsidiary in which we have a 55% shareholding continues to perform
well.
*We remain confident that we can again deliver a favourable result for this
year, albeit against a very strong second half base and remembering that the
second half of the year is heavily dependant on Christmas trading, which
will largely determine the performance of the group in the second half.
ACKNOWLEDGMENTS
Once more on behalf of my fellow board members and myself I thank all our
dedicated staff for their hard work and continued excellent performance
during the year.
Cape Town
5 September 2011
SPONSOR:
UBS South Africa (Pty) Ltd
Date: 05/09/2011 13:15:01 Produced by the JSE SENS Department.
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