Truworths Limited (Zimbabwe) trading volumes up 27.8% in Q1 2022

By Published On: November 25th, 2021Categories: Corporate announcement, Earnings

TRADING ENVIRONMENT

The trading environment was characterized by reduced trading hours in July and August due to Covid 19 induced lockdowns.

Although the Auction rate remained largely fixed over the period, the alternative market rate depreciated the local currency. Month on month inflation was in single digits but worryingly showing an upward trend towards the end of the Quarter.

TRADING VOLUMES

Trading Volumes for the quarter increased by 27.8% compared to the similar period last year as indicated below.

July  August September Quarter
Units growth over similar period
last year
 +9.3% +26.5% +43.1% +27.8%

 

QUALITY OF SALES

56.8% of sales were Cash sales and 43.2% were Credit sales. This compares to 70.5% and 29.5% respectively in the similar period last year.

Customer Credit limits were reviewed upwards in July 2021 in line with salary increases in the general economy and the slowing down of month on month inflation. Credit granting is continuously reviewed taking into consideration developments in month on month inflation and the need to manage the risk of loss of value on the Debtors book.

OUTLOOK

The quarter October to December is traditionally the strongest in terms of trade volumes. We expect that tradition to carry on this year subject to any Covid 19 restrictions that may be imposed.</