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Johannesburg - Furniture retailer JD Group [JSE:JDG] on Thursday reported merchandise sales at the furniture retail division increased by 20.4% for the four months ended January 15 over the previous corresponding period. Some 68% of these sales were done on credit against 66% in 2010.
"What is particularly encouraging is that merchandise sales increased by 25.2% over the festive period," the company said.
The group said tangible benefits are beginning to emerge from the strategic decision to decouple the furniture retail and financial services operating divisions.
Total debtors costs at financial services decreased by 16% over the corresponding period.
"This result is more than satisfactory considering the loan book grew by a respectable 12%. The improved collection rates together with a 17% reduction in bad debts written off over the period, are ahead of our expectations."
The Cash division - incorporating Incredible Connection and Hi-Fi Corporation - showed a 6.1% increase in merchandise sales with a very gratifying increase in unit sales. Product deflation of 10% did, however, negatively impact top-line sales in the cash division.
ABRA, the group's Polish operation, reflected a 4% decrease in sale of merchandise in zloty terms. The rand equivalent has been further affected by an 11% decline in the average exchange rate for the period, resulting in a 15% decrease in ABRA's sales for the four months in rand terms. The lower than expected sales were largely due to the impact of the severe weather conditions on deliveries.
At a consolidated level, the group increased its sale of merchandise by 11.5% for the four months ended 15 January 2011.
The group expects to release its results for the six month period ending February 2011 on or about Monday 16 May.
"What is particularly encouraging is that merchandise sales increased by 25.2% over the festive period," the company said.
The group said tangible benefits are beginning to emerge from the strategic decision to decouple the furniture retail and financial services operating divisions.
Total debtors costs at financial services decreased by 16% over the corresponding period.
"This result is more than satisfactory considering the loan book grew by a respectable 12%. The improved collection rates together with a 17% reduction in bad debts written off over the period, are ahead of our expectations."
The Cash division - incorporating Incredible Connection and Hi-Fi Corporation - showed a 6.1% increase in merchandise sales with a very gratifying increase in unit sales. Product deflation of 10% did, however, negatively impact top-line sales in the cash division.
ABRA, the group's Polish operation, reflected a 4% decrease in sale of merchandise in zloty terms. The rand equivalent has been further affected by an 11% decline in the average exchange rate for the period, resulting in a 15% decrease in ABRA's sales for the four months in rand terms. The lower than expected sales were largely due to the impact of the severe weather conditions on deliveries.
At a consolidated level, the group increased its sale of merchandise by 11.5% for the four months ended 15 January 2011.
The group expects to release its results for the six month period ending February 2011 on or about Monday 16 May.
