Harare – Listed clothing retailer, Truworths Limited’s revenue for the 26 weeks to January 06 improved to close at $10.21 million which compared to $8.605 million the prior period is a 18.7 percent increase.
In the period under review, the Company’s merchandise sales were 16.6 higher than those of the comparable period.
The number of active accounts increased by 2.7 percent over the comparative period to 92,820. 13 449 accounts were on the Instore Credit Card at compared to 12 931 in 2018.
During the period under review, trade receivables increased by 2.8 percent as a result of increased sales on credit.
Trading expenses increased 14 percent compared to the prior period. Excluding trade receivables costs, expenses increased by 11.2 percent.
“Trading expenses were productively managed for the half year. Inflationary pressures set in from October and we had to make additional cost of living adjustments of $40 per employee in line with adjustments agreed at industry level,” it said.
The Group said IFRS 9 which it adopted retrospectively on 9 July 2018 had an adjustment to the Group’s opening retained earnings. Comparative financial statements were not restated as permitted by IFRS 9.
“The adoption of IFRS 9 increased the allowance for impairment as a percentage of the debtors’ book to 20.0% compared to 8.2 percent in 2018. A significant component of the increase in the doubtful debt allowance is due to the consideration of macro-economic and forward-looking information which was neither required nor allowed under the previous accounting standard IAS39.
Going forward, Truworths said inflationary pressures will continue to erode consumer purchasing power and confidence, adding that the impact of the New Monetary Policy is still to be felt and in the short-term shortages of foreign currency will persist.
However, it said it will remain focused on productively managing costs and improving efficiencies.
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