Advertise with fastmoving.co.za
 
 

Brian Joffe’s Long4Life says its Sorbet beauty and grooming business boosted profits in the year to end-February as the chain’s salons for male customers gained traction.
Brian Joffe’s Long4Life says its Sorbet beauty and grooming business boosted profits in the year to end-February as the chain’s salons for male customers gained traction.

Sorbet chain boosts Brian Joffe's Long4Life in year to February

RETAILER NEWS

By Nick Hedley - May 15th, 15:08

Brian Joffe’s Long4Life says its Sorbet beauty and grooming business boosted profits in the year to end-February as the chain’s salons for male customers gained traction. 

Sorbet’s performance “exceeded expectations”, with annual revenue growing 19% to reach the R100m mark for the first time, Long4Life said. Trading profits from the brand rose 74%.

The Sorbet business, which is comprised of salons, nail bars, dry bars, Sorbet Man and Candi & Co, operates 207 outlets in SA.

“Interest from potential franchisees remains strong. Sorbet Man, in particular, exceeded growth expectations, with this offering now extended to 21 stores,” Long4Life said.

Long4Life, whose brands also include Sportsmans Warehouse, Inhle Beverages, and Chill Beverages, said group revenue in the year rose to R3.6bn from R884.8m in the prior 11 months.

Profit after tax was R356m from R169.7m previously.

The company, which listed in 2017 and has not yet adopted a formal dividend policy, said it would not pay a dividend for the year as it had spent R159.6m on share buybacks and was eyeing new investments.

“Whilst the consumer is expected to continue to be under significant pressure, the group remains cautiously optimistic about the future,” Long4Life said.

But asset prices remained lofty, added the group, which closed several large deals soon after listing but has since seen deal-flow slow.

In August 2018, it decided not to go ahead with the R3.9bn acquisition of Rage after analysts said the shoe group was overvalued.

Long4Life said that while it had looked at several investment opportunities, “sellers’ expectations and asset valuations have not reflected the difficult economic climate and in many instances have not met the group’s valuation criteria”.

However, it was optimistic about closing deals in the year to February 2020. The group had cash of R1.1bn at the end of February, from R1.7bn a year before.

Long4Life said it wanted to grow its personal care and wellness division, which includes Sorbet, LimeLight, and health business ClaytonCare.

“Various [acquisition] opportunities are being considered, together with an assessment of additional and/or new products and services.”

Business Live 

Read more about: sorbet | retailer | retail | long4life | brian joffe

Related News

Contraction in economy looms in the first quarter
17/05/2019 - 09:16
Weak performances in the retail, mining and manufacturing sectors, which bore the brunt of the most severe power cuts the country has experienced yet, indicates that the economy contracted in the first quarter of the year.

Richemont lifts dividend 5% as online platforms boost sales
17/05/2019 - 08:52
Richemont chair John Rupert says group sales rose 27%, 'reflecting growth across all business areas and distribution channels.'

Taking stock of fashion's $210bn inventory problem
16/05/2019 - 11:08
Fashion retailers are faced with a dilemma: to keep up with the demands of 'fast fashion' they need rapid stock turnover. But what do they do with the surplus?

Retail sector barely budged in March
16/05/2019 - 09:54
Consumers were under pressure in March with a 74c/l hike in the petrol price and slightly higher inflation.

Dischem's employee strike costs it more than 75m
16/05/2019 - 08:31
Dis-Chem Pharmacies says a strike by employees that lasted nearly five months shaved up to R76.4m off its profits in the year to end-February.