South African firm TFG's revenue surges 19.4% in FY23

13 Jun '23

2 min read

Pic: TFG

Insights

The Foschini Group (TFG) reported a strong FY23 with a 19.4 per cent rise in retail turnover to R 51.8 billion.
The company's revenue rose to R 55.1 billion in FY23, while online sales increased 6.6 per cent to R 4.7 billion.
However, the gross margin contracted to 47.9 per cent.
Profit after tax in FY23 increased by 4 per cent to R 3 billion.

The Foschini Group (TFG) Limited, one of the leading South African fashion retail firms, has posted a 19.4 per cent increase in total revenue in fiscal 2023 (FY23), reaching South African rand (R) 55.1 billion approximately ($2.97 billion). This represents a substantial increase from the previous year's R 46.2 billion. The company recorded a 19.4 per cent increase in group retail turnover, reaching R 51.8 billion in FY23. This significant growth was shared across all territories, with each one recording double-digit increases.

Online retail saw growth as well, though at a relatively more modest rate of 6.6 per cent. The group's online retail turnover reached R 4.7 billion, contributing to 9.1 per cent of the total Group retail turnover, the company said in a press release.

However, the group's gross margin contracted by 60 basis points to 47.9 per cent, down from 48.5 per cent in the previous fiscal year.

In FY23, the company successfully managed to contain trading expenses at 41.3 per cent of retail turnover, a slight improvement over the 41.4 per cent of FY22.

TFG's operating profit before finance costs saw an uptick of 12.4 per cent in FY23, hitting R 5.4 billion. Meanwhile, the profit after tax increased by 4 per cent to reach R 3 billion.

Earnings per share also saw an improvement, with basic earnings per share at 938.5 cents, marking a 4.1 per cent increase from FY22's 901.9 cents per share. On the other hand, headline earnings per share decreased by 4 per cent, standing at 968.9 cents compared to 1009.0 cents per share in FY22.

Cash generation from operations dropped from the previous fiscal year's R 8.2 billion to R 7.1 billion.

Fibre2Fashion News Desk (DP)