S&V Weekly Newsletter Vol.7 No.48, November 29 2021
Please note: Click on any ad to go to the advertiser’s website
Logistics
Nike: Will they or won't they deliver?
'What is really going on with Nike's cancelled orders?' read a headline in US trade publication Footwear News on 24 November.
At that point, FN knew of 1 unnamed store that had received notification from Nike that "the products [for the northern hemisphere summer 2022 season] that had not yet been shipped to the store would not be fulfilled", and FN said NPD Group senior sports industry advisor Matt Powell 'confirmed to FN that he had heard from about half a dozen independent shoe stores that the same situation happened to them. However, shortly after, Powell said Nike backed away from what was revealed in the reported email to at least one of these stores. “Now I’m being told that Nike retracted emails saying stores had futures cancelled. Very strange,” Powell wrote.'
The situation in SA is also unclear. On Friday, S&V emailed 3 chains - 1 stocking both fashion and technical product, the others fashion only - and 2 technical sports independents, asking what information they had been given by Nike about their orders between now and the end of the second quarter 2022, and what information they had been given by other international sport/athleisure brands about the same issue. S&V also emailed Nike SA for comment.
As of yesterday afternoon, none had replied.
But a retailer spoken to on Friday said that for the last 6 months, Nike SA had "just continued to take quarterly futures orders".
"My understanding, and this is hearsay, is that they have closed a number of accounts. We continue to trade. I've seen letters which some US retailers have received, and I've heard some pretty big European accounts have been told the same thing, so I'm a bit mystified.
"Based on Securities & Exchange Commission filings, where Nike advised that they had lost 108 million pairs of production in Q3, this is obviously going to impact on all geographies, but we have heard nothing from Nike SA so far on how this will impact our orders."
He said virtually all the other suppliers had been "pretty upfront and open with us about the effect of the problems with production in the East and shipping".
"I guess we'll just have to wait and see."
Manufacturing on track to reach 2019 figures, imports down
Durban, KZN, SA – Half year statistics indicate that SA footwear manufacturers are on track to recover to 2019 production levels, SAFLIA has reported. Imports appear to have dropped.
"The caveat is that we are uncertain about the informal sector, where we often estimate production figures," said SAFLIA executive director Jirka Vymĕtal. "Many of them seem to have closed or scaled back."
He said local orders had increased not because of the DTIC's Master Plan "but because of ever-increasing prices out of Asia and dramatic increases in freight and shipping costs".
Exports had not grown, he said.
| January-June |
2019 |
2020 |
2021 |
| |
Millions of pairs |
| Imports |
90.4 |
62 |
79.6 |
| Local production |
24.4 |
15.9 |
21.5 |
Stock Exchange News Service (SENS)
Kaap Agri final results September 2021
For the full report, click here
Paarl, W. Cape, SA (25 November 2021) – Revenue for the year was reported at R10.6 billion (2020: R8.6 billion ) while operating profit improved to R556.9 million (2020: R508.4 million). Profit for the period attributable to equity holders of the holding company increased to R321.1 million (2020: R275.1 million). Furthermore, headline earnings per share came in at 454.92 cents per share (2020: 388.54 cents per share).
Company outlook: Agricultural conditions in the areas in which we operate have largely been positive; however, certain areas remain under pressure, particularly the Eastern Cape and northern regions of the country. The agricultural sector remains cautious regarding policy uncertainty around land rights.
Covid has had an indelible impact on the lives of all people, and consumer behaviour and patterns have been permanently affected. While agri trade has been the least impacted by Covid due to the essential nature of food production, it has been encouraging to see areas within our retail trade returning to pre-Covid levels.
Mr Price interim results October 2021
For the full report, click here
Durban, KZN, SA (25 November 2021) – Revenue from continuing operations went up 35.2% to R12.4 billion (R9.2 billion) whilst profit from operating activities grew 48.9% to R1.7 billion (R1.1 billion). Profit attributable to equity holder rose 50.8% to R1.1 billion (R753 million). In addition, headline earnings per share from continuing operations increased 33.7% to 448.3 cents per share (335.4 cents per share ).
Company outlook: The high level of uncertainty experienced during the FY2022 Period is most likely set to continue for the remainder of FY2022 and beyond. The threat of further COVID-19 waves, load-shedding and global supply chain challenges, all continue to affect the group's ability to plan with accuracy, requiring increased focus on proven disciplines and agile decision making.
The group has proven its operational versatility over the last 18 months. Despite the challenges listed above, it entered the high summer season (October to December 2021) with fresh and available stock, made possible by strategic timing buffers built into ordering processes and its high volume of units sourced in South Africa (the most and the majority share of all units procured in South Africa across the retail sector). The merchandise teams have worked tirelessly to book production capacity and shipping delivery times well in advance to mitigate the anticipated risks of the approaching seasons. The group has advanced hedging policies, covering both exchange and freight rate contracts, giving it comfort that it has secured highly competitive rates, enabling it to make the best possible commercial decisions regarding inflation and margins. Inflation will continue to be monitored closely as the group strives to live out its purpose of being "Your Value Champion", while ensuring that it continues to deliver healthy and sustainable margins.
The group's fashion-value merchandise, fiscal discipline and highly cash generative business model has enabled it to trade through some difficult circumstances and emerge in a position of strength. Sincere gratitude is extended to all the group's associates and partners for their commitment to protecting and restoring its operations and communities during a very challenging time, operating with agility and in the true spirit of partnership. Management remains focused on the group's recently stated growth ambitions in South Africa, bedding down its acquisitions and taking hold of its strategic opportunities through superior execution.
New DG for UNIDO
Vienna, Austria (26 November 2021) – The nineteenth session of the General Conference of the United Nations Industrial Development Organization (UNIDO), under the theme “Building a better future”, will take place in a hybrid form from 29 November to 3 December 2021 at the Vienna International Centre, Austria.
On Tuesday, 30 November 2021, Gerd Müller, currently Germany’s Federal Minister for Economic Cooperation and Development, will be confirmed as the successor to LI Yong as UNIDO Director General. The confirmation will take place during the third plenary meeting of the UNIDO General Conference from 9:30 a.m. – 12:15 p.m.
The conference will feature several high-level events, including the UNIDO 55th anniversary ceremony, all accessible to the public. In addition, a virtual exhibition, highlighting the conference’s key topics, including the Organization’s COVID-19 response, can be viewed here: https://unido-gc.org/.
The full agenda of the General Conference, live-stream and more can be found here:
https://www.unido.org/19th-general-conference
In case you missed it!
The November issue of S&V African Leather Magazine
S&V AFRICAN LEATHER MAGAZINE VOL15 NO11 NOVEMBER 2021
IN THIS ISSUE:
3 Sam Setter's Pills
- A new quip from Sam Setter in each issue.
03 Hide Prices - Has The Rise Stopped?
- Greg Feinber, Cape Produce Co.: Hide price drop 'temporary'.
- Gert Kruger, Mossop Leather: What's come down will go up - but local manufacturers will be less affected than importers.
07 Automotive Leathers
- Global parts shortage affects SA auto leather plants.
08 An Eclectic View
- Buffing dust: This should be treated as a health and safety issues, writes H. Procter
09 Tanning Science Decoded
- The use of pine bark powder and naphthalene sulphonate syntan as a pre-tannage for vegetable tanned or chrome-free leather: A summary by Dr. Clive Jackson-Moss of the ISTT.
11 Weights & Measures
- Compiled by the ISTT.
12 Basic Leather Making
- A new series by Richard Daniels.
14 Fairs & Conferences
- The XXXVI IULTCS biennial congress is successfully completed, writes Christine Anscombe.
- ACLE to be rescheduled to 2022.
16 Technology
- Digital communication discussed by various suppliers.
17 Agriculture
- Proper estate planning for farmers, by Dineo Molaba of FNB.
- Looming agriculture profit margin pressures ahead as the rate hike cycle resumes, by Paul Makube of FNB.
Advertisers in this Issue
ISTT (02), Italtan (05), Mimosa (OFC), Rolfes Leather Division (04), S&V Calendar (15), Southern African Footwear & Leather Export Council (SAFLEC) (07), Stahl (06).
Death Notices
Johannesburg, Gauteng, SA – Sagran Naick, commission agent for Le Coq Sportif and Umbro SA, died of Covid on 22 July.
Mossel Bay, W. Cape, SA – Pieter Yzelle, retired former director of South Cape Ostrich Tanning (SCOT), now part of Cape Karoo International, died on 11 November.
They Said It
"I'm just grateful that locally, at least, we're still on Level 1. If they don't shut down the liquor industry and the hospitality industry, we still have the opportunity of having a local Christmas." - Mandy Owen, Vermont Leather and former chair of the Association of SA Manufacturers of Luggage, Handbags & General Goods, on the sudden ban on travel to- and from SA by our major tourist markets.
Got anything you'd like to share?
Do you have any suggestions, comments or experiences about the industry that you'd like to share with the industry? - tony@svmag.co.za
29/11/1930: Mike Samuel, agent, Durban, KZN, SA.
29/11/1943: Nigel Ratcliffe, retired, formerly Boehme Africa and TST Agencies, Ballito, KZN, SA.
29/11/1951: André Lubbe, retired, formerly AP Lubbe & Son, Stellenbosch, W. Cape, SA.
29/11/1965: Maria Mintoor, All Leather Shoe Manufacturers, Cape Town, W. Cape, SA.
30/11/1933: Ahmed Simjee, Hopewell, Durban, KZN, SA.
30/11/1963: Martin Paulsen,?, formerly NULAW, Durban, KZN, SA.
30/11/1971: Mantsebo Motsoanakaba-Phakoana, Fashion Parlour, Ladybrand, Free State, SA.
01/12/1946: Rob Cattell, Cattell’s Industrial Footwear, Springs, Gauteng, SA.
01/12/1948: Ken Gordon, retired, formerly Turbek Trading, Hermanus, W. Cape, SA.
01/12/1950: Aboobaker Gangat, May’s Factory Shop, Port Shepstone, KZN, SA.
01/12/1959: Arthur Lewis, AGB Sourcing & Consulting, Pinetown, KZN, SA.
01/12/1966: Grant N Munro, Freestyle Handmade Originals, Cape Town, W. Cape, SA.
02/12/1949: Stephen Chetty, retired, formerly NFLC, Vanderbijlpark, and Edcon, Johannesburg, Gauteng, SA.
02/12/1968: Teddy Moodley, Caprini Footwear, Durban, KZN, SA.
02/12/1971: Happy Shongwe, Happy Boutique, Mbabane, Swaziland.
02/12/1974: Stuart Galbraith, Milspeed Marketing, China.
03/12/19??: Brandon Geyser, EVA Industries, Durban, KZN, SA.
03/12/1976: Quintin Marais, Rolfes Chemicals, Boksburg, Gauteng, SA.
05/12/1941: Kishor Makan, agent, Johannesburg, Gauteng, SA.
05/12/1961: Eckhard Marshing, ACA Threads, Cape Town, W. Cape, SA.
05/12/1962: Mahomed Amod Mahomed, Willowton Footwear, Pietermaritzburg, KZN, SA.
05/12/1963: Dr Clive Jackson-Moss, ISTT, Grahamstown, E. Cape, SA.
In Memoriam this week
29/11/2001: Harold Sack (b. 14/09/1932), Nugshoe [closed], Pinetown, KZN, SA.
30/11/2017: Dimitar Todorov (b. 08/11/1947), Afromerino Produce (now African Merino Trading) and Tannery Industries Botswana (closed).
01/12/1998: Gian-Carlo Rosa (‘John’) Donati, Nupro Shoes [closed], Pinetown, KZN, SA.
02/12/1996: Pieter Du Plooy, Bata Zimbabwe, Bata SA, KZN, SA.
02/12/2008: Tony Laycock (b. 26/01/1951), Mario Levi Manufacturing [closed], Uitenhage, E. Cape, SA.
03/12/2017: Jim Butterworth (b. 13/12/1937), retired, formerly Elliott Footwear [closed], Crown Footwear and Martin Johnson [closed], Durban, KZN, SA.
04/12/2007: Neville Beckley (b. 27/01/1915), SA Footwear [closed], Durban, KZN, SA.
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.
Directory updates this week
A.J. Rankin & Basson Sport, Ceres, W. Cape, SA.
A.M. Omarjee & Sons/O'Jees, KwaDukuza, KZN, SA.
A.P. Jones, Fish Hoek, W. Cape, SA.
Exchange rates
1. SA Rand (ZAR)/Lesotho Loti (LSL)/Namibian Dollar (NAD)/Swazi Lilangeni (SZL)
Source: http://www.x-rates.com/calculator/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 2021/11/07 |
R17.40 |
R20.33 |
R15.05 |
R2.35 |
| 2021/11/14 |
R17.54 |
R20.56 |
R15.33 |
R2.40 |
| 2021/11/21 |
R17.76 |
R21.17 |
R15.74 |
R2.46 |
| 2021/11/29 |
R18.19 |
R21.52 |
R16.12 |
R2.52 |
Note: For previous rates, see HERE
2. Botswana Pula (BWP)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 2021/11/07 |
13.23 |
15.45 |
11.44 |
1.78 |
| 2021/11/14 |
12.97 |
15.21 |
11.33 |
1.77 |
| 2021/11/21 |
13.11 |
15.62 |
11.62 |
1.82 |
| 2021/11/29 |
13.21 |
15.62 |
11.71 |
1.83 |
3. Malawian Kwacha (MWK)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 2021/11/07 |
944.69 |
1103.68 |
817.48 |
127.75 |
| 2021/11/14 |
935.64 |
1096.78 |
817.62 |
128.17 |
| 2021/11/21 |
923.23 |
1100.15 |
818.32 |
128.12 |
| 2021/11/29 |
920.46 |
1088.54 |
815.76 |
127.86 |
4. Zambian Kwacha (ZMW)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
US $ |
CNY ¥ |
| 2021/11/07 |
20.18 |
23.58 |
17.47 |
2.73 |
| 2021/11/14 |
20.09 |
23.55 |
17.55 |
2.75 |
| 2021/11/21 |
19.96 |
23.79 |
17.69 |
2.77 |
| 2021/11/29 |
20.07 |
23.74 |
17.79 |
2.78 |
5. Zimbabwean Dollar (ZWL$)
Source: https://www.xe.com/currencyconverter/
| |
Euro € |
GBP £ |
CNY ¥ |
Official US$ |
| 2021/11/07 |
418.21 |
488.59 |
56.55 |
98.98 |
| 2021/11/14 |
414.14 |
485.46 |
56.73 |
99.93 |
| 2021/11/21 |
408.29 |
486.53 |
56.66 |
Not available |
| 2021/11/29 |
408.26 |
482.79 |
56.71 |
105.66 |
ABSA Agri Trends: Hides & skins prices
Johannesburg, Gauteng, SA (25 November 2021) - The current average hide price increased by 8.5% to R5.0/kg from R4.63kg a week ago. The current price is 6.0% lower than the average price a month ago and is 63% higher than the average price a year ago. The range of prices reported was as follows: Minimum price: R4.45 Maximum price: R5.80. Please note, we have changed our methodology and price levels are not directly comparable to previous prices that we reported on. Our methodology weighs the prices we collect according to the number of hides they sell in a month. This is done to make it more representative of the prevailing market price. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. - Marlene Louw, senior agricultural economist, and Nkhensani Mashimbyi, agricultural economist, Absa group.
| Hide & skin price progression |
| Date |
Hides/Kg |
Dorper/Skin |
Merino Skin |
| 2020/11/06 |
2.36 |
26.00 |
44.00 |
| 2020/11/13 |
2.38 |
23.59 |
40.00 |
| 2020/11/20 |
2.69 |
35.00 |
50.00 |
| 2020/11/27 |
3.08 |
36.00 |
49.00 |
| 2020/12/04 |
3.65 |
34.03 |
49.00 |
| 2020/12/11 |
3.68 |
33.21 |
50.83 |
| 2020/12/18 |
3.93 |
32.59 |
51.67 |
| 2021/12/25 |
4.08 |
34.39 |
51.67 |
| 2021/01/01 |
3.93 |
34.03 |
54.00 |
| 2021/01/08 |
3.88 |
31.43 |
46.43 |
| 2021/01/15 |
4.03 |
31.43 |
46.43 |
| 2021/01/22 |
4.16 |
30.00 |
47.00 |
| 2021/01/29 |
4.04 |
33.05 |
50.83 |
| 2021/02/05 |
3.86 |
31.41 |
45.71 |
| 2021/02/12 |
4.33 |
35.46 |
45.83 |
| 2021/02/19 |
4.29 |
34.49 |
50.00 |
| 2021/02/26 |
4.94 |
34.70 |
47.50 |
| 2021/03/05 |
5.67 |
38.33 |
51.67 |
| 2021/03/12 |
4.80 |
42.50 |
59.17 |
| 2021/03/19 |
4.99 |
35.74 |
52.86 |
| 2021/03/26 |
6.33 |
35.16 |
55.00 |
| 2021/04/02 |
6.50 |
31.83 |
49.00 |
| 2021/04/16 |
8.98 |
37.44 |
50.00 |
| 2021/04/22 |
8.37 |
|
|
| 2021/04/29 |
8.98 |
40.96 |
62.00 |
| 2021/05/06 |
7.56 |
40.96 |
62.00 |
| 2021/05/24 |
7.82 |
40.83 |
61.67 |
| 2021/05/28 |
7.47 |
|
|
| 2021/06/14 |
8.34 |
40.83 |
61.67 |
| 2021/06/24 |
8.31 |
|
|
| 2021/07/02 |
8.25 |
42.21 |
66.00 |
| 2021/07/09 |
9.53 |
46.39 |
64.00 |
| 2021/07/16 |
8.17 |
39.00 |
61.00 |
| 2021/07/23 |
8.44 |
43.33 |
67.50 |
| 2021/07/30 |
7.57 |
39.00 |
61.00 |
| 2021/08/06 |
9.60 |
39.63 |
64.00 |
| 2021/08/12 |
9.93 |
|
|
| 2021/08/23 |
|
41.40 |
64.00 |
| 2021/09/09 |
9.78 |
|
|
| 2021/09/16 |
8.96 |
|
|
| 2021/09/23 |
8.89 |
|
|
| 2021/09/29 |
6.40 |
39.60 |
65.00 |
| 2021/10/07 |
6.27 |
|
|
| 2021/10/11 |
5.68 |
41.00 |
64.00 |
| 2021/10/21 |
5.34 |
45.00 |
64.00 |
| 2021/10/28 |
5.11 |
45.00 |
64.00 |
| 2021/11/04 |
4.67 |
40.29 |
64.00 |
| 2021/11/11 |
4.64 |
39.50 |
65.00 |
| 2021/11/18 |
4.63 |
39.50 |
65 |
| 2021/11/25 |
5.00 |
|
|
Note: For previous prices, see HERE
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:
Fusion Leather, Cape Town, W. Cape, SA. PPE distributor.
G-10 Exclusive Wear, Johannesburg, Gauteng, SA. Men's outfitter.
Contact us
News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za
Next newsletter: December 6, 2021.
SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za
Our website www.svmag.co.za
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