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Johannesburg - Retailer Edcon, which delisted from the JSE
in 2007, on Monday said adjusted earnings before interest, tax, depreciation
and amortisation (Ebitda) increased by 8.1% for the fourth quarter ending April
2.
"I'm encouraged by our consistent positive growth
throughout the year," said Jurgen Schreiber, who has been Edcon's CEO since
April.
"This performance has been underpinned by improved
connections with our targeted consumer segments and successful marketing in
support of enhanced product offers," he said.
Total sales increased by 6.1%, with comparable store sales
up 5.3% and credit sales accounting for 49% of total sales, down from 50%
achieved the year before.
The group said the 9.5% rise in cash sales endorsed the
improvement in product offering.
Edcon's department store division, which includes Edgars,
Boardmans and Red Square, increased retail sales by 7.1%, largely due to strong
growth from ladieswear, menswear and cellular.
CNA's retail sales grew 3.9%, primarily from growth in
stationery and cellular. The discount division, which includes Jet, Jet Mart,
Jet Shoes, Legit and Discom, increased retail sales by 5.3%, chiefly through
sales growth in cosmetics, home products and cellular.
Edcon's gross profit margin was stable at 36.9%, with lower
markdowns offsetting the impact of input price inflation.
Credit and financial services operating profit increased by
26.8%.
"This arose primarily from management's initiatives
that commenced during 2009 to reduce the availability of credit to higher risk
customers, while simultaneously improving collection activities," the
company said.
Annualised bad debts as a percentage of average debtors was
10.9%, down from 12.9% in the prior year.
The group reported strong cash generation, with a reduction
in net short-term debt of R1.585m.
During the year foreign currency hedges of R5.001m were
settled through the issue of R4.616m in euro bonds and R1.010m in South African
bonds.
Schreiber said the group's outlook remained positive.