Foschini reveals full extent of civil unrest

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Foschini shop

by TINTSWALO BALOYI
JOHANNESBURG, (CAJ News) THE civil unrest in South Africa in July impacted retail clothing group, Foschini, to the tune of over R600 million (US$40,17 million).

This is according to a trading statement the company released on Thursday, disclosing that the total South African Special Risk Insurance Association (SASRIA) claim for damages and asset losses is estimated at R613 million.

The Johannesburg Stock Exchange (JSE)-listed firm confirmed receiving its first interim insurance payment of R200 million, with further payments expected during the second half of the financial year.

“The Group is also evaluating its anticipated recoveries for its insured business interruption losses of profit, which have not been finalised as yet,” it added.

It expects to provide further updates at the interim results presentation in November.

Of the 198 stores confirmed looted and damaged during the civil unrest in KwaZulu-Natal and Gauteng provinces, 145 are now open and trading.

A further 24 stores are to reopen “shortly” and 29 will only reopen in 2022 due to extensive structural damage.

The Cape Town-headquartered Foschini projected the COVID-19 pandemic, related government-enforced lockdowns and related store closures in its main trading jurisdictions would impact on earnings for the six months ended September 30.

The acquisition of stores and assets of Jet in South Africa and in Botswana, Eswatini, Lesotho and Namibia is also expected to impact on earnings.

Earnings per share are expected to be more than 50 percent (more than 80,8 cents per share) higher than the same period in 2020.

Headline earnings per share for the current period are expected to be more than 100 percent to the prior period.

– CAJ News

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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