Publisher of leading trade magazines for the Footwear, Leather-goods, Leather & PPE industries
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S&V Weekly Newsletter Vol.3 No.9, March 6, 2017

This Newsletter is sponsored by SAFLIA

Please note: Click on any ad to go to the advertiser’s website

 

AVI Ltd: Spitz, Green Cross ‘reasonable in difficult environment’

Johannesburg (SA) – AVI Limited’s unaudited interim results for the 6 months ended December 31, 2016 were released this morning. AVI, which is a fast moving consumer goods group, includes A&D Spitz and Green Cross, along with food and beverages and personal care products. Extracts follow:
        Group overview: Group revenue for the first semester of the financial year increased by 11,6%, from R6,39 billion to R7,13 billion.
        This growth reflects a combination of price increases in response to a weaker Rand exchange rate and higher raw material costs, and volume growth in most of our grocery categories. Gross profit rose by 8,0% to R3,12 billion with the consolidated gross profit margin dropping from 45,3% to 43,8% as some categories have yet to fully recover the input cost pressures resulting from the weaker Rand exchange rate. Operating profit increased by 8,1%, from R1,30 billion to R1,41 billion underpinned by the improvement in gross profit and the containment of selling and administrative expenses. The operating profit margin decreased from 20,4% to 19,7% in line with the pressure on gross profit margins in some categories.
        Footwear and Apparel: The Footwear and Apparel category increased revenue by 4,3% to R1,19 billion while operating profit increased by 1,3% from R305,6 million to R309,6 million. The operating profit margin decreased from 26,9% to 26,1%.
        The Spitz and Kurt Geiger brands grew revenue by 2,8% as a result of higher selling prices offset by lower footwear volumes. Core footwear brands performed well considering the constrained consumer environment, although some consumers found it difficult to absorb the higher prices necessary to address rising, Rand driven, input costs. The gross profit margin was in line with last year underwritten by prudent control of selling and administrative costs. Spitz recorded its best monthly sales in December supporting a reasonable semester in a tough environment. Operating profit increased from R288,6 million to R290,4 million while the operating profit margin for the semester declined from 30,6% to 29,9%.
        Green Cross revenue grew 11,1% to R193,8 million. Retail revenue increased by 17,3% due to price increases in response to the weaker Rand and increased trading space, with one new store opened in addition to the eight new stores opened in the 2016 financial year. Improved assortment and stock replenishment resulted in encouraging retail sales growth notwithstanding the constrained environment. Wholesale revenue declined by 1,9%, reflecting continued volume pressure on this channel as consumers increasingly display a preference to buy higher priced footwear in branded stores. Gross profit margin was maintained despite the weaker Rand, while selling and administrative costs increased in line with the increased number of stores. Operating profit increased from R17,8 million to R18,7 million with encouraging overall progress in the last three months of the semester. – [http://www.sharenet.co.za/v3/sens_display.php?tdate=20170306070500&seq=2]

 

 

DTI to spend R1billion on TCLF industries

Pretoria (SA) – The Department of Trade & Industry has allocated R1 billion to the textiles, clothing, leather & footwear (TCLF) sector for incentives in its 2017/18 budget, according to Abisha Tembo, chief director, IDD Textiles, Clothing, Leather & Footwear at the DTI. This is out of total incentives budget of R5.5 billion.
        “This is good news for the local manufacturing industry,” said Association of SA Manufacturers of Luggage, Handbags & General Goods chairman Shaun Esson. “We would like to thank all of the people involved at the DTI and the IDC for supporting our industries and for keeping us top of mind at Treasury. These are the types of interventions that allow us to grow and remain competitive.”
        “We hope the footwear industry will get a significant portion of the funding,” said Jirka Vymetal, executive director of the Southern African Footwear & Leather Industries Association (SAFLIA), “and that it will go towards benefitting the industry overall and strengthening areas of structural weakness, such as various categories of components.”
        He also expressed his gratitude to the DTI and the IDC for the continued support. 

 

Kenya seeks to grow footwear SMEs

From Yassin Awale, Leather Sector Advisor to the Cabinet Secretary
Nairobi (Kenya) – During the launch of the Kenya Footwear Manufacturers Association 5 year strategic plan (2017-2022) the government continued with its commitment towards the development of the sector by announcing the setting up of a US$1 million pool for the establishment of a revolving fund to provide funds to SMEs at a preferential rate as well as the provision of space to develop clusters across the country, in the 47 Counties. The Kenya Leather Development Council, in partnership with Kenya Industrial Estates (a government of Kenya parastatal), will develop working space as well as the modalities top provide, monitor and manage the funds. – [yassin.awale@gmail.com]

 

 

Footwear News Australia closes

Melbourne (Australia) –         Trade magazine Footwear News Australia has closed after 37 years.
        In a mail to readers, publisher/editor Vicki Hatton, who took over the magazine founded by her father, Bob Grant, blamed declining advertising and subscription revenues and increased printing and distribution costs.
        She is lecturing media and communications at a university and is also working towards a Masters degree in communication. – [vhatton@footwearnews.com.au]

 

Invitation to attend the official opening of the India Leather & Footwear Trade Expo in Cape Town on Wednesday

From Deidre Harte, LTE
Cape Town (SA) – The India Leather & Footwear Trade Show will be officially opened by Dr Ivan Meyer, Minister of Finance, Western Cape Government, on Wednesday, 8 March at 10:00am in Hall 4B at the CTICC in Cape Town. The Council for Leather Exports (CLE) and Mr Puneet R Kundal, Consul General, Consulate General of India, Cape Town cordially invite the industry to attend the inauguration. 43 leading manufacturers (see list below) from India will be showcasing their latest products exclusively to Southern African industry decision makers and buyers including non-leather footwear; leather footwear and garments; small leather goods including handbags, belts, wallets, portfolio’s, etc; safety footwear, boots and gloves; finished leather; saddlery items as well as shoe components such as welt and veneer heel covers, soles, shoe lasts and shoe uppers.

AALEE INDIA EXPORTS PVT. LTD, AKS LEATHER INDIA PVT. LTD, ALERT INDIA (P) LTD, AMPEL, ASHFORD LABORATORIES PVT. LTD. (TREGUS INC.), BELLISSIMO ACCESSORIES PVT. LTD, DAATA LEATHER EXPORTS, D'LORDS FOOTWEAR & FASHION PVT. LTD, ELAHI EXIM INDIA PVT. LTD, HABIB FASHION, HANNA SCM, I K INTERNATIONAL, INDIANA EXPORTS, INTERNATIONAL CORPORATION, JC FENASIA EXPORTS PVT. LTD, JALANDHAR LEATHER (INDIA) PVT. LTD, KEVIN IMPEX, KIWI INTERNATIONAL, LEATHERWAVE, LEATHER WORLD, M & M EXPORTS, MEMOR HOUSE, M V SHOES, NAAZ EXPORTS (P) LTD, NAV INTERNATIONAL, PORTIND SHOE ACCESSORIES PVT. LTD, QUANTUM INTERNATIONAL, R.S. LEDERWAREN PVT. LTD, RAMJEE LEATHERS AND SUPPLIES, RICHMARKS INTERNATIONAL, SANT RUBBERS LTD, SARUP INDUSTRIES LTD, SHAFS LEATHER EXPORTS, SIDDHARTH EXPORTS, SPORTS INTERNATIONAL, SUPERHOUSE LIMITED, SWARNA INTERNATIONAL, TOP LASTS, UNIFAB INDUSTRIES, UNIVERSAL LEATHER INDUSTRIES, ZUHA LEATHER PVT. LTD

The India Leather & Footwear Trade Expo will take place on Wednesday, 8 & Thursday, 9 March in Hall 4B, CTICC, Cape Town and the opening times are from 09:30am until 14:30pm. If you have not yet registered to attend the trade expo, please register online at http://urexpo.com. Entrance is free but the show is not open to the general public. For more information, contact the local show organiser - LTE – leaders in trade exhibitions on Tel: +27 21 790 5849, Email: deidreh@worldonline.co.za.

 

 

They Said It

"The Stuttafords plan is a load of shit." - Arthur Limbouris of Trail Terrain and New Pier Trading, in a belated response to our article last week.

"I should have listened to my mother and become a doctor." - Armadillo Footwear’s Gary Woolfson on trading conditions.

"If you tighten your belt too much, your eyes pop out." - Woolfson again.

 

Appointments

Klein Karoo International
Oudtshoorn (SA) – Klein Karoo International has appointed Arno Albertyn as its new leather director from April 1. He was previously with a boutique winery.
        Explaining the appointment of a non-leather person to the position, KKI MD Charl du Plessis – who was previously leather director and was himself from outside the industry – said it had been very difficult to find a person in the industry. He said Albertyn’s background included similar challenges to those faced by the ostrich industry, and that “hopefully he’ll get his head around it quite quickly”.

Coats SA
Hammersdale (SA) – Peter Manns has announced his retirement from Coats at the end of March 2017, and will be returning to the UK.
        His position as manager of the Southern African cluster of companies is being taken up by Salim Mugon, who is based in Mauritius. Responsibility for the South African unit will pass to Ashley Naidoo, previously speciality sales and business development manager, who will report to Mugon.

 

Movements

Cape Town (SA) – Ivor Saks has resigned as Armadillo Footwear’s Western Cape agent.

 

Milestones

Montego Bay Surf and Jeanswear
Hermanus (SA) – Sally Hebbert closed her business and retired at the end of February.

Roma Italia
Johannesburg (SA) – Hillbrow boutique Roma Italia is to continue trading despite the murder on March 1 of partner Ismail Khan during an armed robbery attempt.
        His mother said today his brother, Faizel, also a partner in the business, would continue.

 

Birthdays this week

06/03/1971: Sunil Bhagwandas, Ginger Bhagwandas, Durban.
06/03/1976: Kevin Pillay, Alateens Bopsi Footwear, Durban.
07/03/1960: Rafique Moosa, Cassim Moosa Bros. Trading, Pretoria.
08/03/1958: Gary van Rooyen, New Balance SA, Cape Town.
08/03/1962: Rajesh Kulwa, Apeco, Pinetown.
08/03/1966: Yamraj Deeplal, Foot Flair, Amanzimtoti.
09/03/1967: PJ Moloisane, Trade & Investment SA, Sandton.
09/03/1982: Romal Sewsunker, Sunstep Footwear, Durban.
10/03/1951: Mrs M Balakrishnan, Malar Industries, Ndola, Zambia.
10/03/1958: Nigel Dunning, Mimosa Extract Co., Pietermaritzburg.
11/03/1956: Sarah Gedye, Michelle Footwear, Durban.
11/03/1959: André Meyer, Green Cross, Bloemfontein.
11/03/1968: Brett Laing, Grounded, Cape Town.
12/03/1966: Matthew Hansen, CL Hansen Agencies, Durban.
12/03/1988: Mohamed Yaseen Jeewa, Traford Footwear, Durban.

 

In Memoriam this week

06/03/1993: Brian Murphy, agent.
06/03/2011: Livio Sirilli (b. 06/04/1921), Sirilli Shoes, Pietermaritzburg.
10/03/2004: Steven Naidoo, Nasron Footwear, Durban.
11/03/1993: Doug Roberts, Clarks SA/Kingsley Shoes [both closed], Pietermaritzburg.
11/03/2005: Des Orme, (b. 27/11/1924), Panama Shoes [closed], Durban.
11/03/2013: Donald Henry Gough (b. 02/07/1922), Barker Footwear/FMF, Cape Town.

Do you have any names you’d like to add to our list of birthdays and In Memoriam? Please send the details.

 

ABSA Agri Trends 14/02: Hides & skins prices

The average bovine hide price over the past week was R14.65/kg green. Hide prices are determined by the average of RMAA and independent companies. “The recent strength of the currency and pressure from the demand side has been adding pressure on prices. There may also be stocks still sitting from December, which further add pressure on prices.”
        The average price for Dorper skins was R47.33/skin and Merino was R95.29/skin.

Hide & skin price progression
Date Hides/Kg Dorper/Skin Merino Skin
19/01 15.34 45.56 81.38
24/01 15.17 40.92 89.52
31/01 15.10 46.00 94.55

 

Trade Fair dates

For a list of local and international trade fairs covering footwear, leather goods, leather and PPE, visit our website: http://www.svmag.co.za/events.php

 


Classified Adverts

Busy Footwear Manufacturing Company requires:

 

Despatch Clerk & Despatch Manager
Minimum 3 years experience required
Manager must be able to multitask & Co-ordinate
the entire despatch process
Please email cv's: Kershnee@labora.co.za

 




Busy Footwear Manufacturing Company

 

Looking for either Fashion, Industrial Engineering or
students with a design/footwear qualification,
to begin a 9 month, NQF 3 Design Programme.
As an advantage you will be taught on the latest
design software (CAD & Shoemaster)
Please email cv's together with results sheet: kershnee@labora.co.za

 


  

Contact us

News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za

Next newsletter: March 13, 2017.

Should you wish to subscribe email tony@svmag.co.za
Our website www.svmag.co.za

 

 

 

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