The Foschini Group expects profit surge, says KZN flood impact is not material

The Foschini Group has made insurance claims relating to the floods in KwaZulu-Natal

In a trading update for the year to end-March, retailer The Foschini Group (TFG) says its headline profit should be more than 692.6 cents per share, compared to 197.9 cents per share in the previous year.

The company, which also owns @home, American Swiss and various other retail brands, also confirmed that 36 of its stores as well as a cloth warehouse were damaged in the floods that hit KwaZulu-Natal this month.

But TFG says the flood damage has not been material.

“These damages are not considered to be material in the context of the group’s South African operations and all affected stores have since resumed trading. The group has appropriate insurance cover and has notified its insurers accordingly,” said TFG.

The group reported a strong trading performance in South Africa, the UK and Australia in the second half of the financial year. This offset the impact of the July unrest in KwaZulu-Natal, as well as a R2.7 billion goodwill impairment at its TFG London operations

TFG’s share price was slightly higher on Monday morning following the update, trading up 18c to R139.59.

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