Home » Industry » Edgars Profit Increases to U.S.$5,2 Million

EDGARS Stores recorded a net profit of US$5,2 million for the 53 weeks ended January 10, 2015, a 22 percent increase over the profit for the same period last year.

The increase in profit was due to extension of the credit period from six months to 12 months for the Edgars chain saw.

The launch of The Club, which had a membership of 87 000 during the period under review, also contributed to the company’s performance. The group also said it opened four stores during the year.

Turnover increased by 20 percent with like for like growth at 2,4 percent, while profitability improved by 30 percent.

Edgars chairman, Themba Sibanda, said offering extended credit options, improved assortments and superior customer services were the major drivers for the group’s performance.

He said the group would continue to focus on cost control, account growth and customer service to improve earnings.

“We will continue to focus on offering customers more value and wider choice, tighter cost control and transforming business processes,” Sibanda said.

The Jet chain contributed 21,6 percent to the group’s turnover up from 20 percent in 2013

In terms of credit management, Sibanda said the growth in debtors was well-managed and there was no deterioration in the quality of the books. He said by year end the company had 168 763 compared to 2013’s 142 796 active accounts. Basic earnings per share was up 2,02 cents from 1,68 cents. Edgars borrowings were at US$20,3 million compared to US$16,5 million and gearing improved marginally during the year.

Source : Financial Gazette