Clothing retail chain Truworths capitalised on the consumptive spending that has gripped the country to record a net profit of $537.7 million, a 419 percent increase over last year when it made a net profit of $103.6 million.
According to its results for the year ending 7 July, sales increased by 197 percent from $993.8 million to nearly $3 billion. Operating profit increased more than six-fold from $118.2 million to $759.3 million.
The Truworths chain, which has 17 stores, saw its sales increasing by 228 percent. Sales at Topics increased by 192 percent. It has 32 stores, one down from last year.
Number 1 Stores, which had 53 stores but is now down to 47, saw its sales increase by 165 percent. Its sales were affected by the current drought which saw sales in agro-based outlets slow down.
The manufacturing arm, Bravette, had a 216 percent growth. Its exports to the European Union were down from January to April. The company says its operating margins improved from 12 percent last year to 26 percent and it has also improved its debt collection.
While trading in the first two months of the new year was pleasing, the company says it is worried about hyper-inflationary conditions as they could affect affordability of its products. It is also worried about the food shortages in the country as they have an effect of disposable incomes.