HomeChoice increases its revenue despite challenging year
By Matthew Stevens - Mar 14th, 16:03
Home-shopping and digital retailer HomeChoice International declared a dividend of 87c per share on Tuesday in the release of its financial statements for the year to end-December.
The group’s revenue rose by 19.3% to R2.7bn and total profit and comprehensive income increased 7.7% to R424.8m. This growth took place despite some challenges, said HomeChoice.
These challenges included the tough economic and trading conditions in SA during that year, the fall in the prescribed minimum interest rate and the increased restriction in the unsecured credit market, said HomeChoice. These led to a slight drop in the gross profit margin in its retail sector, a decrease in the finance charges its financial services division earned and increased operating and compliance costs.
HomeChoice said these challenges were offset by a number of factors. It said that good retail sales in the second half and improved disbursements of loans allowed revenue to grow while improved cost management allowed the group to mitigate the effects of increased expenses. The group also benefited from increased cash on hand, which resulted from lower capital expenditure, and a term loan of R350m it secured. Revenue in all its divisions increased but the strongest growth was in retail sales, which were up 25.1% to R1.5bn.
The HomeChoice group was incorporated in Malta and is listed on the JSE. It has two primary subsidiaries. HomeChoice, which is its retail sector and the largest home-shopping retailer in southern Africa, according to HomeChoice; and FinChoice, its financial services division, which provides loans and insurance products.© BusinessLIVE MMXVII
Retail sales provide a positive surprise
21/07/2017 - 12:03
SA’s retail sector not only confounded economists who had expected a contraction in May, but growth accelerated from April, despite the economy being in recession.
Shoppers moving to mobile: Where retailers fall short with m-commerce experiences
21/07/2017 - 11:08
Mobile is a large and growing segment of online shopping, with data showing 62 percent of mobile users have purchased online and 42 percent of consumers use mobile as their primary access to websites.
Why you need to put yourself in your customers’ shoes…or pants…or jackets
21/07/2017 - 09:29
The growing number of customer touchpoints has made creating and implementing effective marketing strategies harder than ever. In fact, Hubspot's State of Marketing 2017 shows only 61 percent of marketers believe their marketing strategy is effective. This means that 39 percent of marketers are deploying ineffective strategies.
Choppies struggles to make its mark in tough SA conditions
20/07/2017 - 15:56
Botswana-based Choppies may be a well-established grocery retail chain in many parts of sub-Saharan Africa, but the company has found the going tough in SA.
Dis-Chem and Clicks remain attractive
20/07/2017 - 15:01
While the general retailers’ index has sunk 27% from its April 2015 peak, two shares in the sector appear to be proving the so-called "lipstick theory".