Johannesburg, Gauteng, SA (July 30, 2019) – For the 26-week period, Massmart's sales of R43.8bn represent total growth of 5.5% and comparable sales growth of 3.6%, with year-to-date product inflation of 2.7%. Total sales growth from our South African (SA) stores was 4.9%, while the same figure from our ex-SA stores was 11.8% in Rands.
       Sales growth slowed noticeably in the six-week period since our previous update issued at the May 2019 AGM, with total growth of 3.3% and comparable growth of only 1.9%. During this six-week period, comparable sales growth slowed in Massdiscounters and Masswarehouse but increased slightly in Massbuild and Masscash.
       Reflecting the difficult consumer environment, margins were lower than anticipated across all divisions in May and June which resulted in a disappointing Group financial performance for the six months to June 2019 as described in the Trading Statement below.
       Detailed information will be provided as usual in the Massmart interim financial results and presentation to investors on 29 August 2019, but some key points per division are noted below. It should be noted that all performance references below are before the impact of IFRS 16.
       For the six months to June 2019, Massdiscounters will report a trading loss of between R395m and R425m, compared to the June 2018 trading loss of R95m. Profits in Game South Africa are below the prior period, but much lower in Game Africa and DionWired. Compounding this are higher costs from the SAP IT project and supply chain and logistics. There have been several changes to the Massdiscounters executive team in the last few months:
  • CEO Albert Voogd resigned with effect from July 2019 and has been replaced, in the interim, by Andrew Stein. Andrew has been with Massmart for 10 years and has worked in both Cambridge and Makro;
• Riaan Turton was appointed as finance director and Kathrine Madley was appointed marketing director; and
• Neville Hatfield has been appointed merchandise director with effect from July 2019. Neville has been the merchandise director at Builders Warehouse since 2006 and prior to that had been the merchandise director at Game.
       Masswarehouse will report trading profit of between R320m and R370m which is 24% to 34% below the prior period. Much of the lower profitability is caused by the soft sales, margin pressure from the lower sales participation of general merchandise and expense growth caused partly by the new Makro store opened in Durban North in March 2019.

Trading Statement for the 26 week period ended 30 June 2019
  Given the above performances, it is estimated with reasonable certainty that for the six months to June 2019 the Group will report an operating loss, before non-trading items, foreign exchange movements and net interest, of between Rnil and R30m.
       This disappointing performance was caused by softer than expected sales, margin weakness and expense growth of approximately 12% (comparable 9%). New stores representing 3.1% additional trading space have been opened since June 2018 and this impacted on employment, depreciation and occupancy costs in addition to cost-inflation.
       African currency weakness has resulted in foreign exchange losses anticipated to be R81m, in comparison to a foreign exchange gain of R23m in the prior period. The losses are caused primarily by recent currency weakness in Zambia and Nigeria.
       Net interest costs will be approximately 18% higher than the prior period figure of R300m.
       The tax charge has been adversely impacted by an inability to raise deferred tax assets in certain ex-South African tax entities and impairing deferred tax assets in some South African and non-South African tax entities.
       Consequently, excluding the impact of IFRS 16, shareholders are advised that Massmart anticipate, with reasonable certainty, the following for the six months to June 2019:
 
Excluding the impact of IFRS16
Estimated June 2019, Restated* June 2018 and Anticipated % change 
Headline (loss)/ earnings (Rm) - (530.0) to (550.4); 204.1; (359.7%) to (369.7%)
HEPS (cents) - (240.5) to (249.8); 94.8; (353.7%) to (363.5%)
Net (loss)/ earnings (Rm) - (582.4) to (602.0); 195.7; (397.6%) to (407.6%)
Basic EPS (cents) - (264.3) to (273.2); 90.9; (390.7%) to (400.5%)

* 2018 results have been restated for the impact of an error in accounting relating to a long term lease, as set out in note 41 of our 2018 Annual Financial Statements.

Shareholders are reminded that the figures and estimates shown above are before adjusting for IFRS 16 which the Group will be reporting for the first time in the June 2019 interim financial results (and which were the subject of a separate investor presentation held on 14 May 2019). The most notable impact of IFRS 16 is, as a result of capitalizing long term leases to the balance sheet and hence recognizing a right- of-use (ROU) asset and related lease liability, that rental charges are removed from profit and loss whilst being replaced by depreciation relating to the ROU asset and accounting interest relating to the liability. Including the impact of IFRS 16, shareholders are advised that Massmart anticipate, with reasonable certainty, the following:
 
Including the impact of IFRS16
Estimated June 2019, Restated** June 2018 and Anticipated % change
  Headline (loss)/ earnings (Rm)# - (774.1) to (794.5); 204.1; (479.3%) to (489.3%)
HEPS (cents) - (351.3) to (360.5); 94.8; (470.5%) to (480.3%)
Net (loss)/ earnings (Rm)# - (826.5) to (846.1); 195.7; (522.3%) to (532.3%)
Basic EPS (cents) - (375.0) to (383.9); 90.9; (512.6%) to (522.4%)
** 2018 results have been restated for the impact of an error in accounting relating to a long term lease, as set out in note 41 of our 2018 Annual Financial Statements but are not adjusted for IFRS 16.
# Included in the impact of IFRS 16 are foreign exchange losses of approximately R76 million relating to the revaluation of US Dollar denominated leases in Africa.
         Massmart's financial results for the six months to June 2019 will be released on 29 August 2019 where a more meaningful proforma financial comparison will be provided in the accompanying results presentation.

Stellenbosch, W Cape, SA (July 29, 2019) – As announced on 12 July 2019, Steinhoff management will be hosting an Investor Presentation on 13 August 2019. This presentation will take place at the Cape Town Convention Centre, Cape Town. The presentations will start at 10:00 am (South African time) and registration at the venue will be from 9:30 am.
       A live webcast link will also be available on https://www.corpcam.com/Steinhoff13082019
       The event will be hosted by the Group CEO, Louis du Preez, and his management team. The presentations are expected to last one hour and will cover the events that have taken place since December 2017, including improvements in governance, the financial restructure, the financial restatement process, the 2017 and 2018 Annual Reports, the 2019 Half-year Report and an operational outlook.
       If you would like to attend, watch remotely or listen to the presentations, please register in advance as follows:
       Attend presentation: Send an email to rsvp@steinhoff.co.za, including your name and details
       Webcast: Register your details on https://www.corpcam.com/Steinhoff13082019
       A recording of the presentation will be available on www.steinhoffinternational.com after the event.

"It's been very quiet. Ladybrand as a whole is very quiet since the South African border post has been forcing Lesotho residents - who are the majority of the shoppers here - to queue for several hours every time they want to enter SA. Previously, they got a 6 month stamp in their passports. Footwear isn't a big part of our business, but we're having to look for cheaper merchandise." - Teresa Stockdale, partner, Euro Clothing, Ladybrand, Free State, SA. Independent, family outfitter.

"It's been steady. The last few months have seen an improvement, and now it's stable. We've been in business for about 45 years, selling exclusive, top end imported merchandise, and we never see a big dip - nor a big rise, unfortunately." - Paul Abrosie, director, The Executive, Johannesburg, Gauteng, SA. Independent, 1 store, men's outfitter.

"It's been very bad. We do mostly school wear, which is very seasonal. It's been a warm winter, and the sales of tracksuits and jerseys have been slow. School wear has been good for us over the years, and hopefully it will pick up again from November." - Raj Sukai, proprietor, Fair Price Store/Workwell Tailors, Port Shepstone, KZN, SA. Independent, 1 store, school wear and tailoring, including manufacturing of school uniforms.

"It's been quiet, but the rest of the month hasn't been so bad." - Famida Mohamed, partner, Fame, Matubatuba, KZN, SA. Independent, 1 store, men's outfitter.

"This week has been quiet, but the rest of the month hasn't been so bad, and overall we're doing well and can't complain. The Johannesburg Municipality has put up its lights and water rates, which I think has affected consumers. We import around 85% of our footwear now, which is sad. I'd rather it was the other way round, but we can't get the finish we want from most local factories. I don't think South Africa has the skills anymore." - Mohammed Bulbulia, member, Family Shoe Centre, Johannesburg, Gauteng, SA. Independent, 1 store, family footwear, mostly more expensive. 3rd generation owners of this store, founded in 1921.

Johannesburg, Gauteng, SA (July 24 2019) – In a release via the Stock Exchange News Service (SENS), AVI Limited issued a voluntary trading update and statement for the year ended 30 June 2019

       Comparisons to prior year results in the commentary are made on a like-for-like basis, before taking reclassifications in terms of the new revenue and lease accounting standards, which were adopted with effect from 1 July 2018, into account.
       Group revenue was 1,2% higher than the prior year. The trading environment was difficult throughout the financial year with weak consumer spending limiting sales volumes in many of our categories, exacerbated in some categories by competitor discounting which we were unwilling to match. Selling prices were increased in categories where specific cost pressures arose but, in general, selling prices were maintained through the year. December's sales volumes were lower than last year including in Spitz which was unable to match the prior December's record sales volumes.
       Gross profit margins were well protected reflecting generally low raw material cost inflation and benefiting from selling price increases where necessary. Lower sales volumes resulted in pressure on operating profit despite ongoing efforts to reduce selling and administrative costs across all business units.
       Operating profit for the full year was lower than last year. Both creamer and biscuits achieved strong year on year profit growth in the second semester and this, supported by an improved result from I&J partially ameliorated the first semester's decline in operating profit.
       Group operating profit was impacted by restructuring costs at Green Cross (R27m) and an unrealised mark-to-market loss on I&J's fuel hedges of R13,4 million compared to an unrealised gain of R15,6 million in the prior year.        Finance costs were higher than last year in line with higher debt levels.
       The impact of the new revenue and lease accounting standards, adopted with effect from 1 July 2018, on headline earnings for the year was negligible.
       A total impairment of R87,0 million after tax has been made against Green Cross' property, plant and equipment and trademark values to recognise expected realisable values following the restructuring completed in the second semester, as well as the period it will take to return the business to acceptable levels of profitability. The impairment will be recorded as a non-cash capital item.
       The weighted average number of shares in issue during the year was 0,5% higher than last year due to the issue of new shares in terms of the Group's various share incentive schemes, including the black staff empowerment share scheme.
       The following disclosure is made in accordance with Section 3.4 (b) of the Listings Requirements of the JSE Limited:
- Consolidated headline earnings per share for the year ended 30 June 2019 are expected to decrease by between 4% and 6% over the prior year, translating into a decrease from last year's 543,1 cents to a range of between 511 and 521 cents per share; and
- Consolidated earnings per share for the year ended 30 June 2019, including capital gains and losses, are expected to decrease by between 4% and 6% over the prior year, translating into a decrease from last year's 513,1 cents to a range of between 482 and 493 cents per share.
       It is expected that AVI will release its results for the year ended 30 June 2019 on or about 9 September 2019.
       The information above has not been reviewed and reported on by the Group's auditors.

"Very tough. The month started okay - not great, but good compared to what we've had - but last week and especially this week it has been very quiet." - Nazir Laher, proprietor, Elite Same Day Shoe Repairs, Johannesburg, Gauteng. Independent, 1 store, repairer and men's footwear retailer.

"A bit quiet. The year started very slowly, but some of the months have been okay." - Desrae Doubell, sales, Elle Lifestyle Boutique, Port Elizabeth, E Cape. Independent, 3 stores, women's boutique.

"Not too bad. It's picked up a bit. The year so far hasn't been great - some months on par with last year, some a bit down. Last month was very poor." - Ash Nagar, proprietor, Esquires, Benoni, Gauteng, SA. Independent, 1 store, men's outfitter.

"Quiet but okay. It's the middle of the month, and parents don't have money. Come the end of the month it will pick up - that's the trend." - Muhammad Seedat, member, Essay's Fashions, Benoni, Gauteng, SA. Independent, 1 store, school wear specialist.

"The year generally has been down by comparison to last year, and this week was the same." - Asif Mahomed, member, Etem Fashions, Laudium, Gauteng, SA. Independent, 1 store, women's outfitter specialising in comfort footwear.