The Foschini Group (TFG) H2 2025 earnings summary

Executive summary

• Group revenue grew 4.1% to a record ZAR 58.3 billion, with strong H2 acceleration and record segmental results, especially in TFG Africa, which contributed 72% of group revenue and 75% of group EBIT.

• Achieved record financial results for FY2025, with strong top-line and bottom-line growth, especially in H2, and positive momentum continuing post year-end.

• Strategic investments in platforms and acquisitions, notably White Stuff in the UK, contributed to performance.

• Store rollouts, revamps, and omni-channel initiatives drove operational leverage and customer engagement.

• The group maintained a strong balance sheet, with net debt at 1x EBITDA and a healthy cash conversion ratio of 88% over two years.

Financial highlights

• Group revenue rose 4.1% to R62.6bn; retail turnover up 3.6% to R58.3bn year-over-year.

• Gross margin expanded by 150 basis points to 49.4%, and group profit after tax increased by 5.2% year-over-year.

• EBIT grew 4.4% to R6.2bn; profit after tax up 5.2% to R3.2bn.

• Headline earnings per share reached 1,015.6 cents, and the final dividend grew 15% to 230 cents per share, totaling 390 cents for the year, up 11.4%.

• BASH e-commerce platform achieved profitability two years ahead of plan, with 43% sales growth and ZAR 2.1 billion in revenue.

Outlook and guidance

• Positive post-year-end momentum, with nearly 10% sales growth in Africa since year-end and more store openings planned.

• Substantial opportunities for new store openings and like-for-like growth across value, homeware, beauty, and digital platforms.

• Ambition to achieve a 14% operating margin in TFG Africa by FY2028, driven by BASH profitability and new distribution center efficiencies.

• Continued focus on market share gains, operational leverage, and integrating recent acquisitions, especially White Stuff in the UK.

• Continued focus on platform integration, margin improvement, and strategic bolt-on acquisitions internationally.