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S&V Weekly Newsletter Vol.6 No.29, July 20, 2020

This Newsletter is sponsored by SAFLIA

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

 

Retail last week

Only brands are selling

Pema Lalla Outfitters, men’s outfitter, 3 stores.
Pretoria, Gauteng, SA – Business had been “a bit slow”, member A.M. Pema said, and the only real option “to get feet into the store” was to discount.
       “Brands at a price – that’s what sells,” he said. “Unbranded footwear – even if you offer it at cost price – just isn’t selling.”
       He said the store was giving a mask to any potential customer who didn’t have one “whether he buys something or not, and 90% of them do”.

At least someone’s benefitting from alcohol ban

Leaderman’s, men’s outfitter and family footwear, 1 store.
Oudtshoorn, W Cape, SA – “When we first reopened it was very busy,” member Chantelle Terblanche said, “then it slowed down a bit in June. But since the alcohol ban, it’s really picked up – people can’t spend on alcohol, so they’re spending on other things, including clothing and shoes. That’s how it works in Oudtshoorn, and I’m really grateful for it.
       “Of course, it’s not as busy as it used to be, but right now we’re carrying on as normal.”

Customers ‘not coming into CBD’

Paruk’s, men’s outfitter, 1 store.
Durban, KZN, SA  – Consumers are not going into the CBD, director Zaid Paruk said. “The last thing on their minds is clothing. Our suit sales – which are normally big for us – have come to a standstill. Casual wear sales are better.
       “Even the cold weather – which we thought would bring business – hasn’t. There are lots of window shoppers, but people are battling. Most of the sales we’ve had for the past 2 months have been people coming to pick up their lay-byes.”

 

Stock Exchange News Service (SENS)

Richemont: Trading update

Geneva, Switzerland (July 16, 2020)  – Trading update for the first quarter ended 30 June 2020.
Financial highlights:

  • Strong impact from Covid-19, with sales for the quarter down by 47% at actual and constant exchange rates compared to the prior year period
  • Double digit sales decline across all regions, distribution channels and business areas due to widespread temporary store and distribution centre closures, a halt in tourism and subdued consumer sentiment in many markets; at actual rates
    • Decreases were less pronounced in the Middle East and Africa and in Asia Pacific, the latter benefiting from 47% sales growth in China
    • Online retail sales showed stronger resilience than sales in other channels; excluding Online Distributors, online sales contributed 8% of Group sales compared to 2% in the prior year period
    • Jewellery Maisons and Online Distributors fared better than the other business areas
  • As of 30 June, all distribution centres and most stores have reopened with exceptions in the Americas and travel retail
  • The Group's gross and net cash positions at 30 June 2020 amounted to EUR 7.9 billion and EUR 1.8 billion, respectively

Review of trading for the three-month period ended 30 June 2020 at constant exchange rates versus the prior year period
During the quarter under review, the Group's trading and operations were strongly impacted by Covid-19. Sales contracted significantly across all regions, channels and business areas, notwithstanding a 49% increase in China. Performance reflected unprecedented levels of disruption and widespread temporary closures of internal, franchise or multi-brand retail partner stores, as well as the closure of Online Distributors' fulfilment centres. The pandemic affected regions to varying degrees, depending on the duration of closures, reliance on tourist spending and the 'feel good factor' of their domestic clientele. In Europe, sales were 59% lower than in the prior year period, with all markets impacted by public health protection measures, as well as subdued local demand and a lack of international tourism when stores gradually reopened during the quarter. Sales in Asia Pacific were the most resilient. The 29% sales decrease across the region reflected declines across all markets, with the exception of China, which delivered triple digit online sales growth and very strong domestic retail sales in the absence of overseas purchases from the Chinese clientele from the mainland. Sales in the Americas contracted by 61%, with business areas impacted significantly by the temporary store and distribution centre closures. In Japan, sales declined by 64% as stores were closed for most of the quarter under review. The year-on-year sales decline in the Middle East and Africa was contained to 38%, partly reflecting the recent internalisation of operations in the Kingdom of Saudi Arabia as well as advanced purchases in anticipation of the Kingdom's VAT increase on 1 July.
       Retail and wholesale sales decreased by 43% and 65%, respectively, due to temporary store closures, severely reduced tourism and generally weak consumer sentiment. Retail sales were lower across geographies, with the exceptions of strong increases in China and the local South Korean market. Online retail sales decreased by 22%, largely due to the temporary closure of the Online Distributors' fulfilment centres, following strong double digit growth in the comparative prior year period. Of note, quarterly online retail sales exceeded wholesale sales in the period, reaching 25% of Group sales compared to 17% in the prior year period. Excluding Online Distributors, the contribution of online sales rose to 8% of Group sales from 2% in the prior year period, fuelled by strong demand across all business areas.
       The 41% decrease in sales at the Jewellery Maisons reflected lower sales across all product lines and regions, with Asia Pacific recording a lower rate of decline than the business area average. In China, sales increased by 68% over the period. This was particularly driven by increased online and offline retail spend and the contribution of the recently opened Cartier flagship store on Tmall Luxury Pavilion. Sales at the Specialist Watchmakers decreased by 56% due to the aforementioned negative factors, accentuated by a strong reliance on multi-brand retail partners, a comparatively low exposure to China and low online retail penetration worldwide. During the quarter, the Specialist Watchmakers launched a number of online initiatives and participated in the Watch Show on the Cloud to introduce their creations to the Chinese market. Online Distributors recorded a 42% sales decline as a result of temporary distribution centre closures and a highly competitive pricing environment. The Group's other businesses posted a 59% sales reduction, with all Maisons impacted by temporary store and distribution centre closures.
Corporate calendar: The Group's annual general meeting will be held on Wednesday, 9 September 2020 in Geneva, and its interim results for the current financial year will be announced on Friday, 6 November 2020.

 

TFG - underwritten renounceable rights offer

Cape Town, W Cape, SA (July 16, 2020)  – TFG shareholders are referred to the declaration announcement released on the Stock Exchange News Service ("SENS") of the JSE Ltd. ("JSE") on Tuesday, 14 July 2020, relating to a renounceable rights offer to qualifying TFG shareholders ("Rights Offer").
       TFG shareholders are advised that TFG has received all the necessary approvals to implement the Rights Offer and the Rights Offer is now unconditional as the terms of the Rights Offer have now been finalised and all conditions precedent to the Rights Offer have been fulfilled.

Terms of the Rights Offer: TFG shareholders are advised that the board of directors of TFG has resolved to proceed with the Rights Offer to raise, in the aggregate, gross proceeds up to R3.95 billion and that all requisite resolutions to effect the Rights Offer have been passed by the requisite majority of shareholders at the Group's extraordinary general meeting ("EGM") held on Thursday, 16 July 2020.
       The Rights Offer is underwritten by Rand Merchant Bank, a division of FirstRand Bank Ltd., The Standard Bank of South Africa Ltd. and Absa Bank Ltd., subject to customary terms and conditions.
       The Rights Offer will consist of an offer of 94 270 486 renounceable rights to subscribe for new TFG ordinary shares ("Right Offer Shares") in the ratio of 40 Right Offer Shares for every 100 TFG ordinary shares held by TFG shareholders (excluding TFG shareholders resident or located in the restricted jurisdictions to be set out in the Rights Offer Circular (as defined below) on the record date of the Rights Offer ("Ratio of Entitlement"), being Friday, 24 July 2020, and/or such proportionate lower number of Rights Offer Shares in respect of a holding of less than 100 TFG ordinary shares, offered for a subscription price of R41.90 per Rights Offer Share.
       The Rights Offer issue price represents a discount of approximately 32.8% to the Theoretical Ex-rights Price calculated using the prevailing 30-day volume-weighted average price and 40.6% to the prevailing 30-day volume-weighted average price of TFG shares as at Wednesday, 15 July 2020. The Rights Offer Shares will constitute approximately 28.6% of TFG's post-Rights Offer share capital.
       The salient dates and times of the Rights Offer remain unchanged from those published in the declaration announcement on SENS on Tuesday, 14 July 2020.
       TFG shareholders may commence trading the letters of allocation from commencement of business on Wednesday, 22 July 2020 until the close of business on Tuesday, 4 August 2020, both days inclusive, under the JSE code TFGN and ISIN ZAE000288353 and the Rights Offer Shares from commencement of business on Wednesday, 5 August 2020.

Rights Offer circular: Further details of the Rights Offer will be disclosed in the rights offer circular ("Rights Offer Circular"), which Rights Offer Circular is anticipated to be made available on TFG's website, tfgLtd..co.za, on Monday, 20 July 2020, and will be posted, together with a form of instruction in respect of letters of allocation, to certificated TFG shareholders on Monday, 20 July 2020 and to dematerialised shareholders on Monday, 27 July 2020.

 

TFG: Trading update and potential acquisitions

Cape Town, W Cape, SA (July 13, 2020)  – As previously announced on SENS on 15 May 2020 and 18 June 2020, the impact of the global COVID-19 pandemic has been felt across all of our operations since the beginning of March 2020. It had a significant effect on our businesses and on retail turnover for the three months ended 27 June 2020. Scenario planning continues to be critical to our forward planning.

Trading update for the three months ended 27 June 2020: The Group’s consolidated retail turnover declined 43.0% for the three months ended 27 June 2020 when compared to the same period in the previous financial year, with significant trading disruptions caused by Government-enforced lockdowns and regulations on social distancing in all three of our major operating territories – South Africa, the United Kingdom and Australia. The global economic environment remains constrained and consumers continue to experience significant economic pressure.

TFG Africa: TFG Africa’s retail turnover declined 38.4% for the three months ended 27 June 2020 when compared to the same period in the previous financial year, predominantly as a result of all TFG Africa’s South African operations being closed from 27 March 2020 to 30 April 2020. c.80% of the stores re-opened from 1 May 2020, with all stores adhering to strict COVID-19 safety protocols. Performance was strong in May and TFG Africa achieved retail turnover growth of 0.6% compared to the same period in the previous financial year, notwithstanding the fact that 447 jewellery stores were still closed during the month due to the prevailing lockdown restrictions. Excluding the jewellery stores, retail turnover growth in May was up 7.9%^ compared to the previous financial year. All TFG Africa stores re-opened from 1 June 2020 with trading more subdued in the month of June (retail turnover declined 13.8% compared to the same period in the previous financial year) with lower levels of footfall observed in the regional shopping centres.
Pro forma management account numbers used to calculate an indicative retail turnover growth: For the three months ended 27 June 2020, cash retail turnover declined 31.8% when compared to the same period in the previous financial year. E-commerce retail turnover growth for the period was significantly stronger than expected at 109.8% compared to the same period in the previous financial year, contributing 5.0% to total retail turnover for the period. TFG Africa credit: A conservative credit appetite and restricted approval criteria remain in place. Credit retail turnover contracted by 47.1% for the three months ended 27 June 2020 compared to the same period in the previous financial year. As previously announced on SENS on 15 May 2020, cash collections in respect of our debtors’ book were strong in the month of May, the month from which customers could again make account payments in our stores and as a result of customers continuing to adopt the electronic and other alternative payment channels made available to them.
       For the 3 months ended 27 June 2020, cash collections were above expectation but still down on the same period in the previous financial year.

TFG London: TFG London’s pound sterling-denominated retail turnover declined 68.5% for the three months ended 27 June 2020 when compared to the same period in the previous financial year, against the backdrop of a disrupted environment, characterised by Government-enforced lockdowns that temporarily prevented all physical store and concession sales in almost all of TFG London’s UK, European and Rest of the World operations. The store and concession estate gradually re- opened during May and June (in the UK from 15 June 2020), albeit with significantly lower than usual levels of footfall across all markets, particularly in central London and commuter locations which rely on public transport, as well as on office and tourist trade, both of which are yet to return. TFG London’s own branded websites traded up 2.4% in the quarter compared to the same period in the previous financial year, supported by strong sales of casual clothing. 3rd party online channels were however weaker, driving an overall reduction in total e-commerce pound sterling denominated retail turnover of 21.2% for the period when compared to the same period in the previous financial year.

TFG Australia: TFG Australia’s Australian dollar-denominated retail turnover declined 42.4% for the three months ended 27 June 2020 when compared to the same period in the previous financial year. All stores were closed on 27 March 2020 in response to Government restrictions and regulations on social distancing and the re-opening of outlets commenced in April, with all outlets re-opened by the end of May. Trade has been impacted by individual States having different levels of restrictions based on the number of active COVID-19 cases and recently, the Victorian Government announced a lockdown (in parts of the State) due to indications of a second wave of infections, although stores are expected to remain open on minimum rosters. E-commerce retail turnover growth for the three months ended 27 June 2020 was strong in Australian dollar terms at 74.0% when compared to the same period in the previous financial year.

Strategic initiatives in dealing with COVID-19 Update: The COVID-19 pandemic remains dynamic and continues to evolve at different stages throughout the jurisdictions within which we operate. We are adapting our business as effectively as possible to deal with the dynamic environment within which we operate, with the aim of creating long term value for our staff, customers and shareholders. As previously announced, we have accessed Government funding, where available to us, in each of our territories of operation. We also continue to prioritize cost savings initiatives across all our operations and our business optimization initiatives in TFG Africa.

Submission of conditional offer to acquire selected JET stores and related assets: On 10 July 2020, TFG submitted a conditional offer to acquire certain commercially viable stores and selected assets of JET, a division of Edcon Limited (“Edcon”) for a cash purchase consideration of R480 million (“Proposed Transaction”). Edcon is currently in business rescue in terms of the Companies Act. Edcon’s business rescue practitioners have accepted the terms of TFG’s conditional offer. TFG has been granted exclusivity to negotiate and finalise the terms and conclude the Proposed Transaction.        JET is a leading Southern African retailer (by brand recognition and market share) and would provide TFG with a strategically important expansion into the value segment of the Southern African retail apparel market. The Proposed Transaction enables TFG to acquire selected parts of the JET business, a unique opportunity which previously was not possible and is expected to give TFG significant scale at an attractive price. The transaction construct provides TFG with structural risk mitigants, as detailed below, and establishes a value retail pillar for the TFG business that would be costly and difficult to replicate organically. The Proposed Transaction will also include the transfer of selected key executives and staff of JET to ensure sufficient management capacity and continuity to deliver on the current turnaround plan for JET and discussions are well advanced in terms of a proposed transition plan.
       TFG’s conditional offer envisages:
*the acquisition of the JET brand;
*the assumption of a minimum of 371 commercially viable JET stores (“Commercially Viable Stores”). Included in the Commercially Viable Stores, is a distribution centre located in Durban, South Africa and certain stores in Botswana, Lesotho, Namibia and Eswatini;
*the acquisition of the associated property, plant and equipment for the Commercially Viable Stores and the Durban distribution centre;
*the acquisition of the rights in and to the JET Club; and
*all existing stock holdings with a minimum stock value of no less than R800 million (“Minimum Stock Value”). In the event that value of the stock on hand is less than the Minimum Stock Value at the closing date, TFG will proportionately adjust the purchase consideration by the percentage by which the actual stock value is less than the Minimum Stock Value.
       As part of the conditional offer, TFG will assume the operational commitments associated with the Commercially Viable Stores only, such as employee and lease commitments, albeit on a renegotiated basis. Certain head office staff and functions will also be assumed. TFG is finalising its assessment of the capital requirements of the business and currently does not believe this would result in a significant change in the capital requirements for the overall TFG Group.
       TFG are actively engaging with the business rescue practitioners and other key stakeholders in order to progress to a binding offer on an accelerated basis. The Proposed Transaction is subject to customary conditions precedent for a transaction of this nature, including amongst others, the renegotiation of store leases, requisite transitional services arrangements being agreed, TFG Board approval and the approval by the relevant regulatory authorities.
       TFG does not anticipate that the Proposed Transaction will be a categorised transaction in terms of the Listings Requirements of the JSE Ltd. TFG will keep shareholders informed of developments relating to the Proposed Transaction.
       Update on the proposed Rights Offer: Further to the SENS announcement issued by the Company on 18 June 2020 in relation to, amongst other things, the proposed fully underwritten renounceable rights offer by the Company ("Rights Offer") and the convening of an extraordinary general meeting of TFG shareholders to be held on 16 July 2020 to approve matters relating to implementation of the Rights Offer ("EGM"), shareholders are advised that the Company is in the process of finalising the circular to shareholders in relation to the Rights Offer ("Circular") and has today submitted the Circular to the JSE for formal approval. Subject to certain conditions, including the adoption of the resolutions by the requisite majority of TFG shareholders at the EGM, the Company expects to be in position to proceed with Rights Offer and publication of the Circular as soon as practicable following the EGM.

Annual general meeting: Shareholders are referred to the market notice issued by the Financial Services Conduct Authority (“FSCA”) and communicated by the JSE on 3 April 2020, granting an extension of financial reporting periods and are advised that the Company will be utilising the two-month extension period afforded to issuers in that notice.
       The Company’s financial year-end was 31 March 2020. Accordingly, in the normal course, the Company would have been required to distribute its audited annual financial statements together with the notice of annual general meeting (“AGM”) to shareholders by no later than 31 July 2020.
       Management is in the process of finalising these documents and will publish them, along with the integrated annual report by no later than 31 August 2020 and shareholders will be notified via SENS.

 

Truworths: Business update

Cape Town, W Cape, SA (July 15, 2020)  – Investors are referred to the business update and trading statement (‘previous announcement’) published on SENS by Truworths International Ltd. (the ‘Company’) on 25 May 2020 regarding the negative impact the COVID-19 pandemic was expected to have on the results of the Company and its subsidiaries (collectively the ‘Group’) for the 52-week period to 28 June 2020 (the ‘current period’).
       Retail sales of the Group for the current period decreased by 9.4% to R16.9 billion relative to the R18.6 billion reported for the 52-week period ended 30 June 2019 (the ‘prior period’).
       Account sales comprised 51% (2019: 51%) of Group retail sales for the current period, with account and cash sales decreasing by 8.4% and 10.5%, respectively, relative to the prior period.

Truworths Africa: Retail sales for the Truworths Africa segment (being the Group, excluding the UK-based Office segment and comprising mainly of the Truworths businesses in South Africa) decreased by 8.7% to R12.3 billion relative to the prior period’s R13.5 billion, with account and cash sales decreasing by 8.4% and 9.5%, respectively. Account sales comprised 70% of retail sales (2019: 70%). Truworths Africa’s like-for-like store retail sales decreased by 10.3% and trading space increased by 0.5% relative to the prior period. Product deflation averaged 1.2% for the current period (2019: 0.2%).        Truworths Africa’s retail sales for the second half of the current period decreased by 23.5% to R4.5 billion relative to the R5.9 billion in the second half of the prior period. Furthermore, retail sales for the portion of the second half of the current period, prior to the nationwide lockdown in South Africa (i.e. 30 December 2019 to 26 March 2020), were R2.5 billion, an increase of 3.5% over the comparable prior period. Truworths in South Africa was prohibited from trading for five weeks under lockdown level 5. Retail sales for the current period since the lockdown was lowered to level 4 and subsequently level 3 (i.e. 1 May 2020 to 28 June 2020) were R2.0 billion, a decrease of 8.3% relative to the comparable prior period.        The economic crisis caused by the severe negative impact of the ongoing COVID-19 pandemic has resulted in diminished revenue, reduced collections and an increase in the doubtful debt provision in respect of the Truworths Africa debtors book. Gross trade receivables (relating to the Truworths, Identity and YDE businesses) were at R5.5 billion (2019: R5.9 billion) and the number of active accounts decreased by 2.3% to 2.6 million at the current period end. Active account holders able to purchase and overdue balances as a percentage of gross trade receivables were at 77% (2019: 83%) and 20% (2019: 13%), respectively.

Office: Retail sales for the Group’s UK-based Office segment decreased in Sterling terms by 17.4% to GBP230 million relative to the prior period’s GBP279 million. In Rand terms, retail sales for Office decreased by 11.3% to R4.5 billion.        Office’s retail sales for the second half of the current period decreased by 35.5% to GBP79 million relative to the GBP122 million in the second half of the prior period. Furthermore, retail sales for the second half of the current period, prior to the lockdown in the UK (i.e. 30 December 2019 to 23 March 2020), were GBP40 million, a decrease of 16.5% compared to the comparable prior period. During the UK lockdown period from 24 March 2020 to 14 June 2020 (during which all Office stores across the UK were closed), retail sales were GBP33 million, representing a decrease of 47.4% compared to the comparable prior period. For the period 15 June 2020 to 28 June 2020, when retail stores in the UK were allowed to reopen but only certain Office stores were opened, retail sales were GBP6 million, a decrease of 49.7% relative to the comparable prior period. By the end of the current period, Office had reopened 52 of its standalone stores and 16 concession stores across the UK, Ireland and Germany, thereby trading from 68 of its total portfolio of 129 stores. Additional UK stores are planned to be reopened in due course based on the post lockdown sales performance of the stores currently trading.
       The Office segment continued to show good online performance and benefited from its strong online presence, particularly during the UK lockdown period. For the current period, online retail sales grew by 8.8% relative to the prior period and comprised approximately 44% of retail sales. For the current period, prior to the UK lockdown which commenced on 24 March 2020, Office online sales comprised approximately 35% of retail sales. Trading space for the Office segment decreased by 4.8% relative to the prior period.

Update on restructuring of Office: The Truworths International board has considered various options for the Office business as advised in the previous announcement. The Group is in the process of negotiating further funding for the Office business as well as implementing various restructuring initiatives, including a staff redundancy process and store lease negotiations, in order to secure the long-term viability of Office.

As stated in the previous announcement, the COVID-19 pandemic will weigh negatively on the Group’s results for the current period, and will result in an impairment of the Group’s carrying value of the Office trademarks and right-of-use assets relating to store leases. The Group’s results for the current period are in the process of being finalised. The board will provide the anticipated range of the decrease in headline earnings per share and earnings per share for the current period when it has reasonable certainty in this regard, in a further trading statement.        Investors are advised that this business update does not constitute an earnings forecast, that the financial information provided herein is the responsibility of the directors, and that such information has neither been reviewed nor reported on by the Group’s external auditors. The Group’s audited results for the 52-week period ended 28 June 2020 are scheduled for release on or about Thursday, 20 August 2020.

 

They Said It

"Brands have a bureaucracy to work through to get the simplest decision." - Bar Global's Iqbal Baruffwala.
In the same conversation, he described a virus-induced problem, where Bar Global ordered and paid for stock in the U.S. just before the lockdown hit - first there, then here, then there again. It’s now finally about to arrive, but with the original order long since gone. "It’s been an interesting nightmare," he said.

"For the 10 minutes you’re eating your sandwich, you’re ‘perfectly safe’ without your mask on, but for the rest of the time, you don’t dare remove it." - Mossop Western’s Gert Kruger on the logic of airline Covid regulations after his first post-lockdown flight, from Cape Town to Port Elizabeth, on Safair. One improvement – lots of elbow room.

 

Got anything you'd like to share?

Do you have any suggestions, comments or experiences about the lockdown that you'd like to share with the industry? We will publish the throughout the lockdown, so please let us know. - tony@svmag.co.za

 

Exchange rates

1. SA Rand (ZAR)

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

 
  Euro € GBP £ US $ CNY ¥
2020/01/04 R15.97 R18.71 R14.31 R2.05
2020/01/11 R15.97 R18.76 R14.36 R2.07
2020/01/18 R16.04 R14.47 R14.47 R2.10
2020/01/25 R15.87 R18.82 R14.39 R2.07
2020/02/01 R16.54 R19.81 R15.00 R2.16
2020/02/08 R16.48 R19.41 R15.06 R2.15
2020/02/17 R16.16 R19.44 R14.90 R2.13
2020/02/22 R16.27 R19.43 R15.00 R2.13
2020/02/29 R17.27 R20.08 R15.66 R2.24
2020/03/07 R17.69 R20.44 R15.67 R2.26
2020/03/14 R18.04 R19.94 R16.25 R2.32
2020/03/21 R18.92 R20.50 R17.60 R2.48
2020/03/28 R19.63 R21.93 R17.61 R2.48
2020/04/04 R20.58 R23.37 R19.03 R2.68
2020/04/11 R19.70 R22.43 R18.01 R2.56
2020/04/18 R20.43 R23.49 R18.79 R2.65
2020/04/25 R20.59 R23.53 R19.02 R2.68
2020/04/30 R20.24 R23.27 R18.51 R2.62
2020/05/09 R19.89 R22.69 R18.29 R2.58
2020/05/16 R20.11 R22.49 R18.58 R2.61
2020/05/23 R19.24 R21.47 R17.64 R2.47
2020/05/30 R19.48 R21.67 R17.54 R2.45
2020/06/06 R18.93 R21.28 R16.77 R2.37
2020/06/13 R19.19 R21.39 R17.06 R2.40
2020/06/20 R19.37 R21.28 R17.25 R2.43
2020/06/27 R19.35 R21.28 R17.25 R2.43
2020/07/04 R19.14 R21.24 R17.01 R2.40
2020/07/11 R18.94 R21.16 R16.77 R2.39
Note: For previous rates, see HERE

2. Zambian Kwacha (ZMW)

Source: https://www.xe.com/currencyconverter/

 
  Euro € GBP £ US $ CNY ¥
2020/06/20 20.39 22.53 18.24 2.58
2020/06/27 20.48 22.52 18.25 2.57
2020/07/04 20.24 22.46 17.99 2.54
2020/07/11 20.54 22.94 18.17 2.59


3. Zimbabwean Dollar (ZWL$)

Source: https://www.xe.com/currencyconverter/

 
  Euro € GBP £ US $ CNY ¥
2020/06/20 405.54 446.91 361.90 51.17
2020/06/27 405.98 446.46 361.90 51.13
2020/07/04 407.08 451.78 361.90 51.21
2020/07/11 408.89 456.71 361.90 51.70

 

 

 

ABSA Agri Trends: Hides & skins prices

Johannesburg, Gauteng, SA (July 14, 2020) - The current average hide price decreased by 8.2% to R0.67/kg from R0.73/kg green a week ago. The current price is 6.3% lower than the average price a month ago and is 60.6% lower than the average price a year ago. The hide industry is still under immense pressure. Global and local demand is at very low levels. The manufacturing and automotive industries, of which the hide industry is highly dependent on, continues to be under strain. Prices are almost zero (across the board) with absolutely no demand and no expectation for any changes ahead. The local hide industry is expected to remain under pressure for the next few months. NB* Hide prices are determined as the average of the RMAA (Red Meat Abattoir Association) prices and prices of independent companies. - Abrie Rautenbach, head Absa agribusiness, and Conce Moraba, agricultural economist, Absa group.

Hide & skin price progression
Date Hides/Kg Dorper/Skin Merino Skin
2020/01/03 1.38 35.00 46.67
2020/01/10 1.42 28.69 45.71
2020/01/17 1.35 30.74 45.71
2020/01/24 1.39 33.75 48.14
2020/02/07 1.36 33.47 47.50
2020/02/14 1.36 33.75 47.50
2020/02/21 1.32 33.75 47.50
2020/02/28 1.29 37.22 43.89
2020/03/06 1.29 36.50 43.50
2020/03/13 1.31 36.00 43.50
2020/03/27 0.93 37.22 48.33
2020/04/03 0.92 37.78 47.36
2020/04/10 0.89 35.63 42.22
2020/04/17 0.88 39.38 41.25
2020/04/24 0.89 33.82 43.33
2020/05/01 0.82 34.55 46.88
2020/05/08 0.82 32.10 43.33
2020/05/18 0.77 32.10 43.33
Note: For previous prices, see HERE
 

  

21/07/1965: Gavin Cooke, Rebel Safetygear, Johannesburg.
22/07/1948: Roy Nell, Roy Nell Agencies, Durban.
22/07/1960: Holger Stutz, Paul Moeller & Co, Johannesburg.
23/07/1940: Errol Schilder, retired, formerly Barker Footwear, Cape Town.
23/07/1954: Jerome Ingenhoes, CapeKaroo International (formerly Exotan), Port Elizabeth.
23/07/1956: Rob Peschel, emigrated, formerly Outeniqua Tanning [closed], George.
24/07/1982: Thembi Mazibuko-Kahimbaara, Leather Zulu, Randburg.
25/07/1949: Leslie D'Unienville, agent, Durban.
25/07/1952: Antoine Lailvaux, agent, Durban.
25/07/1948: GH Moosa, Riley Trading, Pietermaritzburg.
25/07/1948: Duncan Naidoo, Lugogo, Pietermaritzburg.
25/07/1974: Morné Gerber, Leather from Hart, Pietermaritzburg.
26/07/1958: Mahomed Shaikh, River Queen, Durban.
26/07/1977: Craig Kisten Pillay, Topline Manufacturers, Durban.
26/07/1982: Jameel Cassim, Fashion & Shoe Scene, Gauteng.
27/07/1949: Oli Gardella, retired.
27/07/1959: Vibeke Dugmore, KKI Leather Marketing, Oudtshoorn.
27/07/1958: Morris Marimuthoo, Allimor Footwear, Durban.

 

In Memoriam this week

20/07/????: Ivy Cunningham (b. 16/10/1919), In Step Shoes [closed], Pietermaritzburg.
22/07/1993: Paul Hoch, Edendale Tannery [closed], Pietermaritzburg.
22/07/1993: Chagan Ratanje, RK Footwear, Harare.
22/07/2008: Derek Brown (b. 13/01/1948), Derek Brown Agencies, Johannesburg.
25/07/2004: Jules Fisher (b. 19/07/1931), Fashionette Footwear [closed], Cape Town.
26/07/2019: Cassim Shaikh (b. 30/09/1942), Hopewell Footwear, Durban.

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.

 

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Next newsletter: July 27, 2020.

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