To view the PDF file, sign up for a MySharenet subscription.

LEWIS GROUP LIMITED - Trading update for the nine months ended December 2021

Release Date: 27/01/2022 08:00
Code(s): LEW     PDF:  
Wrap Text
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 UPDATE FOR THE NINE MONTHS ENDED DECEMBER 2021
Lewis Group delivered a strong trading performance in the nine months to December 2021 with merchandise sales increasing by 12.7%. Cash sales grew by 9.4% and credit sales recorded an encouraging 16.0% increase. Comparable stores grew sales by 10.3% for the nine months.
The sales growth was achieved despite the ongoing pressure on consumer spending and the further tightening of the domestic economy in recent months, while the second and third quarters of the group's financial year were impacted by the civil unrest in KwaZulu-Natal. The prior comparative period included the Covid-19 hard lockdown in South Africa when all the group's stores were closed for at least six weeks.
The group delivered sales growth of 3.6% for the third quarter to December 2021, supported by robust Black Friday trading. When compared to the same period ended December 2019, sales grew by 20.7%. Cash sales for the quarter grew by 0.5% while credit sales increased by 6.6%.
Other revenue, consisting of effective interest income, insurance revenue and ancillary services income, continues to be impacted by the low interest rate environment and increased by 1.3% for the nine months.
Total revenue, comprising merchandise sales and other revenue, increased by 8.0% for the nine months.
The improvement in the quality of the group's debtors' book reported at the interim results to September 2021 has continued, with collection rates strengthening to 79.7% for the third quarter (Q3 2020: 75.6%) and 79.0% for the nine months (2020: 69.5%). Debtors' costs for the quarter consequently reduced by 6.3%, contributing to an improvement of 20.5% for the nine months. Update on civil unrest insurance claim
As reported in the interim results announcement on 24 November 2021, the group's total South African Special Risks Insurance Association (SASRIA) claim arising out of the civil unrest in KwaZulu-Natal during July 2021 totalled approximately R78.8 million (excluding VAT). By 30 September 2021, R42.5 million of the claim had been recognised in revenue. A total of R68.6 million of the claim had been received by 31 December 2021. Three of the group's 57 stores damaged in the civil unrest remain closed.
The financial information in this trading update is the responsibility of the directors and has not been reviewed or reported on by the group's independent auditor. Cape Town 27 January 2022 Sponsor UBS South Africa (Pty) Ltd Debt sponsor
Absa Bank Limited acting through its Corporate and Investment Banking Division Date: 27-01-2022 08:00:00
Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

Share This Story