LEWIS GROUP LIMITED - Trading Statement for the Six Months ended 30 September 2021

Trading Statement for the Six Months ended 30 September 2021

Lewis Group Limited
Incorporated in the Republic of South Africa
Registration number: 2004/009817/06
JSE share code: LEW
ISIN: ZAE000058236
Bond code: LEWI
(“Lewis Group” or “the group”)


TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021

Shareholders are advised that Lewis Group expects headline earnings for the six months
ended 30 September 2021 (“the period”) to be between 20% and 30% higher than the
R181.5 million reported for the prior corresponding period (which included the period of
hard lockdown in South Africa when all stores were closed for at least six weeks).
The group posted strong sales growth for the period despite the impact of the civil unrest
in KwaZulu-Natal and Gauteng on trading in the July to September quarter. The health of
the debtors’ book has continued to improve, with the percentage of satisfactory paid
accounts increasing for the period, collection rates improving and debtor costs continuing
to decline. These factors, together with continued tight expense management, have
contributed to the expansion in the group’s operating profit margin.
The group’s earnings per share metrics reflect the leverage effect from the aggressive
share repurchase programme.
Earnings for the period are expected to be as follows:
                                     6 months
                                                               6 months ended
                                      ended
                                   30 Sept 2020               30 Sept 2021
                                     Reported                Expected ranges
                                                      320.9 cps –      35% to 45%
 Earnings per share                    237.7
                                                         344.7 cps          higher
                                                      318.9 cps –        35% to 45%
 Headline earnings per share           236.3
                                                         342.5 cps          higher

The forecast financial information on which this trading statement is based is the
responsibility of the directors and has not been reviewed or reported on by the group’s
independent auditor.

The group’s interim results for the six months ended 30 September 2021 will be released
on SENS on 24 November 2021.



                                                                                          1
Cape Town
8 November 2021

Sponsor
UBS South Africa (Pty) Ltd

Debt sponsor
Absa Bank Limited acting through its Corporate and Investment Banking Division




                                                                                 2

Date: 08-11-2021 09:00:00
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