Truworths International (TRU) H2 2025 earnings summary

Executive summary

• Group experienced a challenging year with sales under pressure in South Africa due to tough macroeconomic conditions, while Office UK delivered double-digit growth in sales, EBITDA, and profit before tax.

• Conservative credit and real estate strategies in South Africa limited sales growth but improved credit book health.

• New Cape Town distribution center faced initial issues but is now operational and expected to be fully functional by end of Q3 2025.

• Group remained highly cash generative, meeting or exceeding all medium-term financial targets and maintaining a robust balance sheet.

Financial highlights

• Group sales rose 3.2% year-over-year to R21.3bn; profit declined 1%; gross margin at 51.3%.

• Headline earnings decreased to R2.82bn; diluted HEPS fell 7% to 743.4 cents.

• Net cash position of R720 million in June 2025, reversing prior year net debt.

• Cash generated from operations increased to R4.84bn; R1.9 billion paid in dividends.

• Office UK sales up 10% to £318.6m, EBITDA up 11%, profit before tax up 12%.

Outlook and guidance

• Management expresses cautious optimism for improved performance, contingent on macroeconomic recovery and credit market stability.

• Group retail sales for first seven weeks of FY2026 decreased by 0.1% year-over-year; Truworths Africa sales down 3.1%, Office UK up 3.4% in local currency.

• Trading space projected to grow 3% in FY2026; capex of R548m committed.

• Board considering share buybacks due to strong cash position and weak share price.