- Results are expected on or before the 8th of May 2023
- They were due on the 8th of April 2023
- Truworths paired losses for both FY21 and FY22
Harare- Embattled clothing retailer listed on the Zimbabwe Stock Exchange (ZSE), Truworths Limited Zimbabwe has postponed the publication of Half-year (HY) 2023 reviewed financial results to the 8th of May this year.
The results for the half-year ended 8 January 2023 were due for publication on the 8th of April 2023.
In a circular, the Group said the delay was approved by the ZSE.
“The Reviewed Results for the half year to 8 January 2023 were due for publication on 08 April 2023 and have been postponed to 8 May 2023,” said the Group.
“The delay is due to necessary work to be completed for the publication of financial statements that comply with International Accounting Standard 29 – Financial Reporting in Hyperinflationary Economies,” added the Group.
In terms of section 39 (1), of the Securities and Exchange, ZSE-listed companies are required to publish audited financial statements not more than three months after the end of their financial years.
Since 2021, Truworths had been recording losses in full-year performance. The Group lastly tasted the nectar of profits in 2020 during the COVID-19 pandemic.
However, thereafter, the clothing giant has been facing headwinds, especially from the depreciating Zimbabwe dollar resulting in huge financial costs, and monetary loss.
In 2021, the Group reported a loss of ZWL132 million mainly due to the rapid depreciation of the Zimbabwe dollar and the effects of COVID-19 lockdowns.
That, however, narrowed to ZWL33 million in FY 2022.
Apart from the Zimbabwe dollar depreciation, the Group is further succumbing to low economic output leading to high unemployment levels and low disposable incomes due to inflation. This poses a negative impact on volumes sold, with customers resorting to buying the product in the unregulated informal market at prices that the business could not compete against.
To counteract Zimbabwe dollar losses, the Group suspended Zimbabwe dollar credit sales on the first of July 2022.
The Group further put constraints on US Dollar credit. The US dollar credit is considered on a selective basis where there is assurance that the US Dollar earnings are guaranteed.
With the suspension of ZWL credit and limited USD credit, volumes for the second half are likely to come down.
Against that, the Group need to focus on productive cost rationalisation and working capital management.
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