FIVE-YEAR REVIEW OF FINANCIAL PERFORMANCE
| Period | 2022 Reported |
2022 Pro forma* |
2021 Reported |
2020 Reported |
2020~ Prof orma |
2019 Reported |
2019 Pro forma~ |
2018 | |
| Number of weeks | 53 | 52 | 52 | 52 | 52 | 52 | 52 | 52 | |
| Returns and margin performance | |||||||||
| Gross margin | (%) | 53.5 | 53.5 | 51.0 | 50.8 | 50.8 | 51.6 | 51.6 | 52.4 |
| Trading margin | (%) | 20.2 | 19.5 | 13.8 | (7.8) | 7.9 | 2.5 | 12.6 | 14.4 |
| Operating margin | (%) | 24.7 | 24.1 | 18.5 | (0.7) | 15.0 | 9.0 | 19.0 | 22.5 |
| Return on equity | (%) | 50 | 47 | 32 | (8) | 14 | 7 | 22 | 27 |
| Return on assets | (%) | 33 | 31 | 24 | (1) | 13 | 10 | 19 | 25 |
| Inventory turn | (times) | 4.6 | 4.5 | 4.6 | 4.0 | 4.0 | 4.2 | 4.2 | 4.0 |
| Asset turnover | (times) | 1.3 | 1.3 | 1.3 | 1.1 | 0.9 | 1.1 | 1.0 | 1.1 |
| Net (debt)/cash to equity | (%) | (9) | 9 | 1 | — | (8) | (7) | (9) | |
| Net (debt)/cash to EBITDA | (times) | (0.1) | 0.1 | — | — | (0.2) | (0.1) | (0.2) | |
| Return on invested capital (ROIC) | (%) | 35 | 24 | (1) | 11 | 9 | 19 | 16 | |
| Weighted average cost of capital (WACC) | (%) | 14 | 12 | 11 | 11 | 12 | 12 | 14 | |
| ROIC divided by WACC | (times) | 2.5 | 2.0 | (0.1) | 1.0 | 0.8 | 1.6 | 1.1 | |
| Cash realisation rate | (%) | 80 | 107 | 136 | 136 | 93 | 93 | 109 | |
| Statements of comprehensive income | |||||||||
| Sale of merchandise | (Rm) | 17 886 | 17 476 | 16 400 | 16 379 | 16 379 | 18 094 | 18 094 | 17 547 |
| Trading expenses | (Rm) | (6 607) | (6 591) | (6 454) | (10 027) | (7 457) | (9 208) | (7 388) | (6 954) |
| Trading profit/(loss) | (Rm) | 3 618 | 3 412 | 2 269 | (1 274) | 1 296 | 459 | 2 279 | 2 518 |
| Profit before finance costs and tax | (Rm) | 4 417 | 4 211 | 3 038 | (110) | 2 460 | 1 620 | 3 440 | 3 946 |
| Profit/(loss) before tax | (Rm) | 4 182 | 3 976 | 2 746 | (463) | 2 107 | 1 226 | 3 046 | 3 696 |
| Headline earnings | (Rm) | 2 996 | 2 846 | 2 114 | 1 716 | 1 716 | 2 445 | 2 445 | 2 647 |
| Statements of financial position | |||||||||
| Non-current assets | (Rm) | 5 520 | 5 305 | 5 856 | 10 246 | 8 645 | 10 465 | 6 904 | |
| Cash and cash equivalents | (Rm) | 1 068 | 1 077 | 2 150 | 2 150 | 777 | 777 | 982 | |
| Trade and other receivables | (Rm) | 4 908 | 4 327 | 4 091 | 4 091 | 4 934 | 4 934 | 5 110 | |
| Inventories | (Rm) | 1 819 | 1 755 | 2 010 | 2 010 | 2 108 | 2 108 | 2 072 | |
| Other current assets | (Rm) | 176 | 57 | 174 | 174 | 175 | 175 | 423 | |
| Total assets | (Rm) | 13 491 | 12 521 | 14 281 | 18 671 | 16 639 | 18 459 | 15 491 | |
| Total equity | (Rm) | 6 106 | 6 191 | 6 008 | 9 826 | 8 379 | 10 105 | 10 369 | |
| Non-current liabilities | (Rm) | 2 628 | 2 195 | 2 698 | 3 270 | 4 638 | 4 732 | 2 363 | |
| Current liabilities | (Rm) | 4 757 | 4 135 | 5 575 | 5 575 | 3 622 | 3 622 | 2 759 | |
| Total equity and liabilities | (Rm) | 13 491 | 12 521 | 14 281 | 18 671 | 16 639 | 18 459 | 15 491 |
| Period | 2022 Reported |
2022 Pro forma* |
2021 Reported |
2020 Reported |
2020 Pro forma~ |
2019 Reported |
2019 Pro forma~ |
2018 | |
| Number of weeks | 53 | 52 | 52 | 52 | 52 | 52 | 52 | 52 | |
| Statements of cash flows | |||||||||
| Cash inflow from operations | (Rm) | 3 548 | 3 849 | 4 517 | 4 517 | 4 002 | 4 002 | 3 471 | |
| Capital expenditure | (Rm) | 340 | 320 | 435 | 435 | 465 | 465 | 485 | |
| Share performance | |||||||||
| Basic earnings/(loss) per share | (cents) | 794.1 | 755.1 | 480.2 | (133.0) | 340.3 | 144.7 | 503.8 | 614.8 |
| Headline earnings per share | (cents) | 779.8 | 740.8 | 520.3 | 410.4 | 410.4 | 571.7 | 571.7 | 615.7 |
| Diluted headline earnings per share | (cents) | 770.8 | 732.2 | 516.7 | 409.0 | 409.0 | 569.5 | 569.5 | 612.7 |
| Cash flow per share | (cents) | 923.5 | 947.3 | 1 080.4 | 1 080.4 | 935.7 | 935.7 | 807.4 | |
| Cash equivalent earnings per share | (cents) | 1 154.6 | 882.8 | 795.0 | 795.0 | 1 006.3 | 1 006.3 | 738.3 | |
| Net asset value per share | (cents) | 1 658 | 1 562 | 1 450 | 2 371 | 1 969 | 2 375 | 2 421 | |
| Annual cash dividend per share | (cents) | 505 | 350 | 280 | 280 | 384 | 384 | 420 | |
| Dividend cover | (times) | 1.5 | 1.5 | 1.5 | 1.5 | 1.5 | 1.5 | 1.5 | |
| Number of shares in issue | (000’s) | 409 456 | 409 456 | 438 407 | 442 964 | 442 964 | 442 876 | 442 876 | 442 590 |
| Number of shares in issue (net of treasury shares) | (000’s) | 368 334 | 368 334 | 396 380 | 414 427 | 414 427 | 425 506 | 425 506 | 428 260 |
| Weighted average number of shares | (000’s) | 384 219 | 384 219 | 406 267 | 418 121 | 418 121 | 427 653 | 427 653 | 429 855 |
| Cumulative value of shares repurchased# | (Rm) | 6 420 | 4 831 | 4 063 | 4 063 | 3 480 | 3 480 | 3 214 | |
| Cumulative number of shares repurchased# | (000’s) | 162 907 | 133 555 | 114 299 | 114 299 | 102 391 | 102 391 | 98 641 | |
| Closing share price | (cents per share) | 4 886 | 5 616 | 3 428 | 3 428 | 7 000 | 7 000 | 7 725 |
Notes:
| * | The ‘2022 Pro forma’ has been calculated by deducting 53rd week adjustments which relate to sale of merchandise, the related cost of sales (calculated with reference to the gross margin for the 53-week period), weekly payroll expense, concession rent, and tax expense (calculated with reference to the actual tax rate for the 53-week period) for the one-week period from 27 June 2022 to 3 July 2022, resulting in the pro forma resultant gross profit, trading profit, profit before finance costs and tax, profit before tax and profit for the said 52-week period. |
| - | Excluding the impact of goodwill and intangible asset impairments. |
| # | Pursuant to the general buy-back programme as well as for share scheme purposes, and includes shares previously repurchased and cancelled: 29 million (cost of R1.6 billion) in 2022, 5 million (cost of R222 million) in 2021, 44 million (cost of R1.9 billion) in 2014, 36 million (cost of R275 million) in 2007 and 7 million (cost of R200 million) in 2006. |
The full 10-year review and definitions are available on the website at www.truworths.co.za/reports.
The Summarised Group Annual Financial Statements appear here.
