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.

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

• 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%.

• 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

• EBIT margin increased to 10.7%, with EBIT up 4.4% for the year after a stronger H2.

• TFG Africa delivered 12.3% EBIT growth, with H2 profit after tax up 12% and top-line growth of 8.7%.

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

• Credit turnover in TFG Africa rose 5.6%, and the net bad debt ratio improved to 12.8%.

Outlook and guidance

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

• 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.