R163m

EDCON RE­TURNS TO PROFIT

Finweek English Edition - - THE WEEK -

Re­tailer Edcon has re­ported a net profit of R163m in the sec­ond quar­ter of the group’s 2017 fi­nan­cial year, com­pared with a R2.1bn net loss in the same pe­riod the pre­vi­ous year. Edcon, which has seen its cred­i­tors swap debt for eq­uity in Septem­ber as the re­tailer bat­tled to pay down debt, said trad­ing con­di­tions re­mained con­strained in the sec­ond quar­ter, with re­tail cash sales in­creas­ing by only 0.8% and credit sales drop­ping 18.1%. The group is in the process of clear­ing old in­ven­tory, some as old as three years, which it ex­pects will have a neg­a­tive impact on gross profit in the year, Busi­ness Day re­ported.

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