Pepkor's clothing retailers post sharp recoveries after group's R5bn lockdown loss

accreditation
0:00
play article
Subscribers can listen to this article
Pepkor is due to release its financial results on 23 November 2020
Pepkor is due to release its financial results on 23 November 2020
  • Pepkor on Friday issued a voluntary trading update covering the financial year ended 30 September 2020.
  • The relaxation of lockdown has been a boost to the group's performance, it said.
  • The group owns clothing retailers Pep and Ackermans as well as furniture chains Russells and HiFi Corporation.


Retail group Pepkor said it lost approximately R5 billion during the five weeks of the hard lockdown, earlier this year.

The group on Friday issued a voluntary trading update for the year ended 30 September. It owns clothing retailers Pep and Ackermans as well as furniture chains Russells and HiFi Corporation, among others.

"The trade restrictions imposed in terms of the national lockdown prevented retail stores from trading and revenue of approximately R5.0 billion was lost during the five-week level-5 lockdown period. Further trading restrictions resulted in the group not being able to trade in its full merchandise range until June 2020," the statement read.

Pepkor said the relaxation of lockdown restrictions helped boost the group's performance for the year.

Its clothing and general merchandise segment reported an increase in revenue growth of 1.4% to R45.6 billion. During the fourth quarter of the financial year it reported revenue growth of 12.1%, recovering from a 15.9% decline during the third quarter as a result of the lockdown. Pep and Ackermans opened 145 new stores during the year, it said.

Its furniture, appliances and electronics segment reported revenue growth of 1.4% to R9.5 billion. Its Fintech segment reported revenue growth of 20.4%, to R8.6 billion.

Overall group revenue, including that of discontinued operations (its building operations, as well as operations in Zimbabwe) increased by 1.9% to 70.9 billion for the year, compared to R69.6 billion reported last year. During the period, Pepkor decided to dispose The Building Company – it contributed 10% to group revenue for the year. Pepkor in the financial year 2019 decided to exit Zimbabwe operations and this was concluded on 30 September.

Revenue from continuing operations increased by 3.6% to R63.7 billion.

The group's financial results are due to be released on Monday 23 November 2020.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
15.77
+0.7%
Rand - Pound
19.69
+0.5%
Rand - Euro
16.65
+0.5%
Rand - Aus dollar
11.10
+0.6%
Rand - Yen
0.12
+0.5%
Gold
1,846.66
0.0%
Silver
21.76
0.0%
Palladium
1,970.00
0.0%
Platinum
958.50
0.0%
Brent Crude
112.55
+0.5%
Top 40
61,000
-1.2%
All Share
67,575
-1.0%
Resource 10
72,529
+1.6%
Industrial 25
72,948
-3.9%
Financial 15
15,746
+0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot