S&V Weekly Newsletter Vol.8 No.08, February 21 2022

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

Bounty Brands: 'We always act ethically'

Cape Town, W. Cape, SA – The press release we published last week announcing Bounty Brands' appointment as southern African distributor for Reebok was followed by reports in other media linking Bounty to an investment in 2018 in which the State-owned Unemployment Insurance Fund (UIF) lost R1.8 billion.
      Bounty has been dogged by controversy, and its relations with some of the people from which it acquired its brands have been acrimonious.
      US brands, in particular, shy away from controversy.
      We offered Bounty Brands Group CEO Stefan Rabe and Bounty Apparel MD Warren Bowers the opportunity to reply to the reports:

UIF investment into Bounty Brands The Board of Bounty Brands has noted allegations in the media in relation to the investments made by the Public Investment Corporation (PIC) on behalf of the Unemployment Insurance Fund (UIF) in 2018. We want to put on record that the funds so invested were deployed in accordance with the legal agreements signed between Bounty Brands, the UIF-funded investor companies and the PIC. Any subsequent loss of value of the Bounty Brands shares held by all shareholders, including the UIF-funded investor companies, resulted from a combination of the financial collapse of Coast2Coast Capital (the then majority shareholder of Bounty Brands) in late 2018 and the poor trading conditions resulting from the Covid-19 pandemic in early 2020. Through a recapitalisation process conducted during 2020, the company acquired new shareholders that injected additional capital into the business and returned the company to a stable financial position. All existing investors in Bounty Brands, including the UIF-funded investors via the PIC, were invited to participate in the recapitalisation process on the same terms as the new shareholders, but declined to do so. The Board of Bounty Brands wants to assure all of its stakeholders that it has always acted in an ethical and strictly legal manner in regards to all its dealings, and that it will continue to do so.

Apeco in liquidation

Pinetown, KZN, SA – Although Apeco MD Mark Gibbings did not reply to a request for confirmation, customers and competitors say the company, founded in 1924, has gone into liquidation. After Mossop Leather and Woodheads, it was probably the oldest component supplier to the footwear and leather goods industries in SA.
      We understand that he will revive an old company name, Pearson Trading, and that it has acquired the KZN agency for Mossop Leather.
      We understand that a handful of staff will move across.

'Former brand ambassador suing Bathu Sneakers'

According to a report in Sunday World on 13 February, Lerato Kganyago, a presenter at Metro FM and a now former brand ambassador for Bathu Sneakers, is suing Bathu for R315 000 which she says is outstanding from a R600 000, 12-month contract which started in March last year.
      According to the report, Bathu said in a letter late last year that it had "terminated her contract due to budget constraints".
      "As a business, we have had to cut back on expenses and we have had to terminate numerous contracts with some of our valuable stakeholders such as Ms Lerato Kganyago."
      Bathu said it would pay the outstanding amount, but hadn't done so. - https://www.pressreader.com/south-africa/sunday-world-8839/20220213/page/1/textview

The President’s SONA shoes: Dicks takes all the credit

Pietermaritzburg, KZN, SA – We reported last week that in his state of the nation address, President Cyril Ramaphosa said the shoes he was wearing had been made by NULAW members at Dick Whittington Shoes in Pietermaritzburg and Bolton Footwear in Cape Town.
      They were made by Dick Whittington, sales & marketing director Tavonga Gonyora told The Witness.
      “We received a special request from the National Union of Leather and Allied Workers to put together a shoe for the President and we were more than happy to,” he said. "Johnston and Murphy shoes have a long heritage of being the official shoe brand for U.S. presidents since 1850. It has been made by Dick Whittington Shoes, under licence, for nearly 60 years." - https://www.news24.com/witness/news/pietermaritzburg/the-presidents-sona-shoes-made-in-pietermaritzburg-20220212  

Stock Exchange News Services (SENS)
 

Truworths interim results December 2021

Revenue up 3.9% for 6 months
Cape Town, W. Cape, SA (Thu 17 Feb 2022, 14:57) – Revenue for the interim period went up 3.9% to R10.3 billion (R9.9 billion) whilst gross profit grew 6.6% to R5.1 billion (R4.8 billion). Operating profit jumped 32.5% to R2.5 billion (R1.9 billion). Profit attributable to equity holders was higher at R1.8 billion (R1.3 billion). Furthermore, headline earnings per share rose 32.2% to 448.6 cents per share (339.3).

Dividend: The directors of the company have resolved to declare a gross cash dividend from retained earnings in respect of the 26-week period ended 26 December 2021 in the amount of 300 South African cents (2020: 232 South African cents) per ordinary share to shareholders reflected in the company's register on the record date, being Friday, 11 March 2022.

Outlook
South Africa: Truworths: The further lifting of restrictions as the country passed the peak of the Omicron-fuelled fourth wave of the COVID-19 pandemic has contributed to normalising of the economy. This is favourable for consumer sentiment and, ultimately, retail spending.
      While COVID-19 uncertainty is expected to continue well into the future, the risk of further waves of infection will be mitigated by increasing vaccination levels and administering booster doses of the vaccine.
      Although the economic outlook remains challenging, management expects growth to be supported by initiatives to increase its market share in categories where it is under-represented, the ongoing improvement in the health of the debtors book, the introduction of new credit products and payment options, new and expanded retail store concepts and brands, the continual expansion of the Group’s e-commerce offering and further technological innovation to support the customer shopping experience.
      Truworths’ retail sales for the first seven weeks of the second half of the 2022 reporting period increased by 5% compared to the first seven weeks of the prior corresponding period.
      Trading space is expected to remain unchanged for the 2022 financial year.

United Kingdom: Office: Office is expected to continue to benefit from its strategic positioning with the world’s leading footwear brands, and its strong and expanding online presence supported by its network of 94 stores.
      Office’s retail sales for the first seven weeks of the second half of the 2022 reporting period increased by 41% in Sterling terms compared to the first seven weeks of the prior corresponding period, continuing the improving post-lockdown sales patterns reported for the first half.
      Trading space is planned to reduce by approximately 11% for the 2022 financial year as Office continues to follow its strategy of exiting unprofitable stores as leases expire or lease breaks are agreed with landlords.
 

Fairs & Events
 

APLF Dubai:

Dubai – Covid travel requirements change frequently, and the APLF organisers say visitors should consult the following website for accurate information:
https://www.emirates.com/za/english/help/covid-19/dubai-travel-requirements/tourists/

They Said It

"Hi Tony……..Leave Kim out of this. She is a busy travel agent !  Yes. My nephew waited 2 days. That was in January though. It's probably improved by now. I’m just trying to find out if I will land up with 2 days in hotel and then the fair is over. Next Monday newsletter and the rules will most likely have changed! KIM……….say nothing! Tony is a journo!!" - Hugo Zuanni, Leather Link, Cape Town, W. Cape, SA, demonstrating why social media serve more to confuse issues than resolve them. 

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

21/02/1958: David Barnett, Urban Angel Accessories, Boksburg, Gauteng, SA.
21/02/1975: Zubair Desai, Leather Loft, Stanger/KwaDukuza, KZN, SA.
22/02/1967: Shabir Ahmed Moola, Moola’s Newcastle, KZN, SA.
22/02/1970: Ebrahim Akoon, Urban Legends, Bloemfontein, Free State, SA.
22/02/1982: Katherine Bischoff, Leatherband, Johannesburg, Gauteng, SA.
23/02/1949: Jeff Burland, retired, formerly United Fram/Wayne Plastics, Johannesburg, Gauteng, SA.
24/02/1954: Linda Gordon, Riversdalse Skoenwinkel, Riversdal, W. Cape, SA.
24/02/1973: M Taljaard, Taljaard Shoe Store, Germiston, Gauteng, SA.
26/02/1946: Brian Carmichael, MTL Trading, Cape Town, W. Cape, SA.
26/02/1959: Prakash Chiba, Falcarragy Trading, Durban, KZN, SA.
26/02/1961: Keith Lyons, Strayz, Pinetown, KZN, SA.
26/02/1981: Ndlela Mazibuko, BBF Safety Group, Pinetown, KZN, SA.
27/02/1975: Denver Mahabeer, ?, formerly Edgars, Johannesburg, Gauteng, SA.

In Memoriam this week

27/02/2010: Jean Mee ‘Mick’ Lailvaux (b. 22/02/1919), Service Agencies (closed), Durban, KZN, SA.
27/02/2010: Amanda ‘Mandy’ Terry (b. 20/02/1969), Makro, Johannesburg, Gauteng, 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.

Classified Adverts

Looking to purchase good condition refurbished machinery for leather goods.

Job creation initiative involving local NPO.
Please contact Susan.
Cell No: 072 410 6683

Directory entries updated last week

Duca del Cosma [Division of Hi-Tec Sports Distributors (Pty) Ltd], Cape Town, W. Cape, SA.
Hi-Tec Sports Distributors (Pty) Ltd, Cape Town, W. Cape, SA.
Magnum Boots [Division of Hi-Tec Sports Distributors (Pty) Ltd], Cape Town, W. Cape, SA.
Royal Adhesive Industries cc, Pinetown, KZN, SA.

New subscribers last week

Sibulele Pandle, Bhaqaza Footwear, Mthatha, E. Cape, SA.
Hemesh Naran, R&N Trading, Alberton, Gauteng, SA.
Maloti Mothobi, Bolton Footwear, Cape Town, W. Cape, SA.
Johanna Williams, leather and fabric crafter, UK.
Joaquim de Paulo, Speed Trainer, Cape Town, W. Cape, SA.
Ernest Sitter, Messe Frankfurt, Cape Town, W. Cape, SA.
Shabeer Mayet, Reeds Mans Shop, Brakpan, Gauteng, SA.
Douglas Bornman, Texstyles Import & Export, Krugersdorp, Gauteng, SA.
Phillie van der Mescht, Berseba Farm, Sutherland, W. Cape, SA.
Vera Keer, accountant, Gauteng, SA.
Karen Fourie, Honey River Bags, Johannesburg, Gauteng, SA.
Erwin Litthauer, Pelts Products, Port Elizabeth, E. Cape, SA.
Nilesh Naran, L. Naran Shoe Centre, Pretoria, Gauteng, SA.

3. Malawian Kwacha (MWK)

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

4. Zambian Kwacha (ZMW)

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

5. Zimbabwean Dollar (ZWL$)

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

ABSA Agri Trends: Hides & skins prices

Johannesburg, Gauteng, SA (17 February 2022) - The current average hide price increased by 9.2% to R6.12/kg from R5.62kg a week ago. The current price is 11.2% higher than the average price a month ago and is 24.6% higher than the average price a year ago. The range of prices reported was as follows: Minimum price: R5.15 Maximum price: R6.25. Please note: 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.

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:
Graylor Workwear, East London, E. Cape, SA. PPE distributor.
Grindlay Fabrics, Cape Town, W. Cape, SA. Automotive and upholstery fabric suppliers.

Contact us

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

Next newsletter: February 28, 2022.

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

Our website www.svmag.co.za