Publisher of leading trade magazines for the Footwear, Leather-goods, Leather & PPE industries

S&V Weekly Newsletter Vol.5 No.35, September 2, 2019

This Newsletter is sponsored by SAFLIA

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

 

Retail last week

Comment from 5 retailers on Saturday
"We did a bit better this week, partly because it's the end of the month, and partly because it's looking a bit brighter. It's been a tough year." - Zoonate Alli, partner, G. Nabee & Co., Lichtenburg, NW Province, SA. Independent, 2 stores, family outfitter.

"Friday was reasonably busy, today has been quiet, although we had expected the week to be busier because of month end. We're not yet seeing an improvement." - Yunus Osman, member, Gaby's Gear, Pretoria, Gauteng, SA. Independent, 1 store, men's and women's outfitter.

"Reasonable. I know most other people are complaining, but I'm grateful for the way things are going at the moment. Overall the year has been reasonable so far." - Zaakir Gani, Gani's Sports World, Klipfontein, Mpumalanga, SA. Independent, 1 store, sports specialist.

"Down. Very disappointing for month end. The economy has got worse and worse every year since the World Cup." - Yunus Gani, member, Gani's, Johannesburg, Gauteng, SA. Independent, 1 store, department store.

"Very bad. The first part of the year was okay, but for the past 2 months it's been down." - Jay Patel, member, Gardinia Stores, Johannesburg, Gauteng, SA. Independent, 1 store, general dealer.

 

 

Apparel newsletter publisher dies

Durban, KZN, SA – Mark Bennett, publisher of The African Cotton, Textiles & Apparel Monitor newsletter, collapsed and died on August 26, aged 59, while on contract in Ghana.
       An obituary will follow.

 

Handbag trend seminar

Cape Town, W Cape, SA – The Footwear & Leather Industry Cluster (FLIC) and co-sponsors SAFLEC, eThekwini Export Programme, Wesgro and the SA Ostrich Business Chamber (SAOBC) will hold a 5-day collection workshop and trend seminar for the handbag sector in Cape Town from October 21-25.
       It will cover the 2020/2021 spring/summer season with a brief overview of 2021/2022 autumn/winter trends.
       The seminar will run by Arsutoria trainer Maria Cristina Rossi.
       It will be held at InvestSA One Stop Shop Boardroom, 46 St Georges Mall, Cape Town. For further details, contact: priya.eep@saflec.co.za

 

 

Stock Exchange News Service (SENS) release

Mr Price - results of AGM
Durban, KZN, SA (August 29, 2019) – Shareholders are advised that at the Mr Price Group Annual General Meeting ("AGM") held yesterday, Wednesday, 28 August 2019, all the ordinary and special resolutions as set out in the notice of AGM dated 11 June 2019 were passed by the requisite majority of votes of shareholders present in person or represented by proxy.
       The Group strives to apply its remuneration philosophy of "partnership" consistently and appropriately and will continue its efforts to engage with shareholders to understand more fully the concerns around the remuneration policy and implementation thereof. Accordingly, shareholders are invited to advise the Group of their reasons for their dissenting votes on the remuneration policy and/or the implementation thereof, and whether they wish to engage with the Group on these issues. Correspondence in this regard should be addressed by email to the Head of Investor Relations, Matthew Warriner (mwarriner@mrpg.com), by 30 September 2019. Thereafter the date and time of requested engagements will be scheduled with shareholders individually.

Woolworths final results June 2019
Cape Town, W Cape, SA (August 29, 2019) – Revenue for the year increased to R75.179 billion (2018: R70.572 billion), gross profit climbed to R27.964 billion (2018: R26.892 billion), operating profit lowered to R5.121 billion (2018: R5.259 billion), loss attributable to shareholders of the parent narrowed to R1.086 billion (2018: loss of R3.550 billion), while headline earnings per share lowered to 342.9 cents per share (2018: 346.3 cents per share).
       Dividend: The board of directors has declared a final gross cash dividend per ordinary share of 98.5 cents (78.8 cents net of dividend withholding tax) for the 53 weeks ended 30 June 2019, a 24.5% decrease on the prior year's 130.5 cents per share. This brings the total dividend for the year to 190.5 cents, a 20.3% decrease on the prior year's total dividend of 239.0 cents per share.
       Company outlook: In South Africa, consumer spending is expected to remain constrained. However, we expect Food to continue to trade ahead of the market and for FBH to continue its turnaround.
       In Australia, we believe the retail market will continue to be tough with heavy discounting and promotional activity.
       We remain committed to delivering our strategies and invest in initiatives that drive growth and efficiencies, while focusing on reducing costs, improving cash flows and strengthening the balance sheet.

Massmart interim results June 2019
Johannesburg, Gauteng, SA (August 29, 2019) – Revenue for the interim period grew to R43.9 billion (R41.7 billion) whilst gross profit rose to R8.4 billion (R8.1 billion). Operating loss before interest came to R129.8 million (profit of R571.1 million). Loss for the period of R585.8 million (profit of R190 million). Furthermore, headline loss per share was 251.8cps (earnings of 94.7cps).
       Dividend: Massmart’s dividend policy is to declare and pay an interim and final dividend representing a 2.0 times dividend cover unless circumstances dictate otherwise. As a result of the headline loss reported during this period, no interim dividend has been declared.
         Company outlook and trading statement for the year ended December 2019: For the 33 weeks to 18 August 2019, total sales amounted to R55.8 billion, representing an increase of 5.0% over the prior period. Comparable stores' sales increased by 3.2%. Product inflation is estimated at 2.6%.
       It is difficult to envisage the South African consumer economy improving in the near-term and negative risks seem heightened in the international geopolitical and economic situation. Massmart's profitability has always been heavily skewed towards the second half of the financial year and particularly the fourth quarter, which includes Black Friday and the Festive season, which makes near-term financial guidance difficult.
       Assuming no further deterioration in the South African consumer economy for the remainder of 2019, Massmart expects that basic earnings per share for the year to December 2019 may be at least 50% below last year's basic earnings per share of 410.6 cents per share on a comparable basis (excluding the impact of IFRS 16) and may be at least 100% below last year's basic earnings per share of 410.6 cents per share (including the impact of IFRS 16). On the same basis, Massmart expects that headline earnings per share for the year to December 2019 may be at least 50% below last year's headline earnings per share of 416.5 cents per share on a comparable basis (excluding the impact of IFRS 16) and may be at least 100% below last year's headline earnings per share of 416.5 cents per share on a reported basis (including the impact of IFRS 16). A further announcement will be released once there is a reasonable degree of certainty on results in due course.

 

 

They Said It

"You're first in the pecking order after sorting out SARS." - Sew Solutions' member Rajesh Raghunandan responding to a request for information. How's that for an elevated status? However, I'm STILL waiting!

 

S&V Directory - Order now

The directory is ready. On sale for R450. The online version is also available at R450 for 12 months' access.

 

2019 Trade Fairs Another essential service from S&V

Please note that we have put a list of the 2019 trade fairs and conferences on our website, linked to their websites: http://www.svmag.co.za/events

 

Exchange rates

Source: http://www.x-rates.com/calculator/

 
  Euro € GBP £ US $ Yuan Renminbi ¥
05/01/2019 R15.94 R17.79 R13.99 R2.03
12/01/2019 R15.86 R17.76 R13.83 R2.04
19/01/2019 R15.76 R17.85 R13.87 R2.04
26/01/2019 R15.52 R17.97 R13.60 R2.01
02/02/2019 R15.26 R17.42 R13.32 R1.97
09/02/2019 R15.46 R17.66 R13.65 R2.02
16/02/2019 R15.90 R18.15 R14.09 R2.08
23/02/2019 R15.90 R18.32 R14.04 R2.09
02/03/2019 R16.17 R18.77 R14.22 R2.12
09/03/2019 R16.22 R18.79 R14.43 R2.14
16/03/2019 R16.31 R19.15 R14.40 R2.14
25/03/2019 R16.31 R19.02 R14.42 R2.14
30/03/2019 R16.26 R18.90 R14.49 R2.15
06/04/2019 R15.80 R18.36 R14.09 R2.09
13/04/2019 R15.76 R18.24 R13.95 R2.08
20/04/2019 R15.86 R18.33 R14.10 R2.10
27/04/2019 R16.03 R18.56 R14.37 R2.13
04/05/2019 R16.08 R18.88 R14.34 R2.13
11/05/2019 R15.91 R18.40 R14.16 R2.07
18/05/2019 R16.09 R18.32 R14.41 R2.08
25/05/2019 R16.15 R18.32 R14.41 R2.08
01/06/2019 R16.28 R18.41 R14.57 R2.11
08/06/2019 R16.95 R19.03 R14.94 R2.16
15/06/2019 R16.61 R18.65 R14.81 R2.14
22/06/2019 R16.30 R18.24 R14.32 R2.08
29/06/2019 R16.01 R17.88 R14.08 R2.05
06/07/2019 R15.91 R17.74 R14.17 R2.05
13/07/2019 R15.75 R17.57 R13.97 R2.03
20/07/2019 R15.63 R17.42 R13.93 R2.02
27/07/2019 R15.91 R17.68 R14.29 R2.07
03/08/2019 R16.42 R17.97 R14.78 R2.13
10/08/2019 R17.08 R18.34 R15.25 R2.16
17/08/2019 R16.97 R18.58 R15.30 R2.17
26/08/2019 R17.00 R18.74 R15.27 R2.13
31/08/2019 R16.68 R18.46 R15.18 R2.12
Note: For previous rates, see HERE

 

 

 

ABSA Agri Trends 28/08: Hides & skins prices

Hides: R1.52/kg. This is 1% lower than last week’s price of R1.54/kg. The current price is 70.8% lower than prices were a year ago. The market remains under immense pressure, a recovery is not be expected in the short to medium term. The impact of the big decline on hide prices plays an important role in the  broader beef industry, because hides form a part of the cattle’s ‘fifth quarter’ which contributes to the processor’s return from animal purchased. During 2017 and 2018, beef prices were so good, which probably meant that the lower hide prices had a minimal impact and could have been overlooked. However, beef prices have declined now and this is bringing the hide value component back into the spotlight. - Wessel Lemmer, senior agricultural economist, Absa Group. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies.

Hide & skin price progression
Date Hides/Kg Dorper/Skin Merino Skin
18/01/2019 3.94 33.75 81.67
25/01/2019 2.89 31.11 92.78
01/02/2019 2.83 30.63 87.50
05/02/2019 2.53    
13/02/2019 2.95    
15/02/2019 2.95 25.83 62.01
19/02/2019 2.01    
22/02/2019 2.00 31.88 49.21
26/02/2019 2.04    
01/03/2019 2.04 30.00 45.21
14/03/2019 1.63    
20/03/2019 1.60    
27/03/2019 1.67    
10/04/2019 1.68    
24/04/2019 1.78    
26/04/2019 1.49 32.50  
03/05/2019 1.82    
17/05/2019 2.05 34.00  
21/05/2019 1.72    
24/05/2019 1.72 36.67  
28/05/2019 1.74    
31/05/2019 1.74 32.50 48.75
10/06/2019 1.68 41.90  
14/06/2019   25.83 38.57
18/06/2019 1.68 25.83  
28/06/2019 1.66    
01/07/2019 1.67    
05/07/2019   25.00 38.57
12/07/2019 1.70 24.00 38.75
16/07/2019 1.71    
23/07/2019 1.71    
29/07/2019 1.59    
09/08/2019 1.58 28.75  
13/08/2019 1.57    
For previous prices, see HERE
 

  

01/09/1941: Stan Kotkin, retired, formerly Footwear Trading (ceased trading), Johannesburg.
01/09/1942: Judy Vincent, Saddler Belts & Leathercraft, Durban.
01/09/1971: Antonella Florio, Vanity, Ladybrand.
02/09/1941: Saag Jonker, Ostrich Products SA, Oudtshoorn.
02/09/1953: Carlos Costa, Superior Footwear/Imponente Tanning, Harare, resident in Australia.
02/09/1960: Arveen Boodhoo, Dick Whittington Shoes, Pietermaritzburg.
02/09/1952: Derek Ellway, formerly Inspectashoe [closed], Cape Town, now in the UK.
02/09/1963: Sunil Daya, Randy’s Agency, Port Elizabeth.
03/09/1953: Vic Jablowski, Protech V, Pinetown.
03/09/1970: Michel Hasson, Topaz, Cape Town.
04/09/1952: Julian Pledger, left the industry, formerly Faith Footwear [closed], Port Elizabeth.
04/09/1955: David Scott, exporter, Pinetown.
04/09/1963: Peter Crouch, Crouch Footwear, Pietermaritzburg.
04/09/1992: Sarah Hayze-Hill, Chillisource, Durban.
05/09/1954: Abdul Samad, Bob’s Shoe Centre, Johannesburg.
05/09/1989: Erlank van Zyl, Ostriland, Citrusdal.
06/09/1957: Yusuf Bhabha, Shoe Boutique, Secunda.
06/09/1953: Tony Stottelaar, Leather Systems SA, Port Elizabeth.
07/09/1981: Mohamed A Lalla, Tysons Shoe & Clothing, Vereeniging.
07/09/1972: Karl Flowers, Authenticae, Northampton.
08/09/1954: Denis Tuchten, formerly Shoe Connection, Cape Town.
08/09/1960: Paulo da Silva, emigrated, formerly Bambi Shoes [closed], Durban.
08/09/1970: Kevin Naidu, Shenlea Agencies, Durban.

 

In Memoriam this week

01/09/2012: Mike Cromhout (b. 06/02/1947), agent, Cape Town.
02/09/2018: Sid Finlayson (b. 07/01/1939), Bata Zimbabwe, Futura Footwear and Bolton Footwear, Mossel Bay.
03/09/2005: Oliver Guibert (b. 23/12/?), Bata Zimbabwe.
04/09/2012: Judi Moakes (b. 13/04/1960), in Northampton, formerly secretary, SLTC (SA Section).
08/09/2017: Roger Benjamin (b. 17/08/1945), agent, Port Elizabeth.

Have you let us know about your birthday, or the birthdays of your colleagues? Our readers love this section, so please become part of it. This also applies to the In Memoriam section. Help us remember former colleagues.

 

Have a look at these links

We invite businesses to send us links to websites, Facebook pages and the like which they feel would be of interest to others. The links below are from our database:
Be Nice Clothing, Robertson, W Cape, SA. Distributor of sport and corporate wear, school uniforms and footwear.: http://www.beniceclothing.co.za/
Beach & Beyond, Ballito, KZN, SA. Beach wear retailer, including women's sandals and tote bags: https://beachandbeyond.co.za/

 

Contact us

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

Next newsletter: September 9, 2019.

SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za

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

 

 

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