South African retail giant TFG wants to maximise value in its recent acquisition Tapestry, it said on Friday.
In its interim results, the company said it sees great value in its R2.4-billion acquisition of Tapestry, which owns Coricraft and Dial-a-Bed.
“Since the acquisition of Tapestry Home Brands from August 1, we have integrated that business and introduced TFG credit to all Tapestry stores. Furthermore, we have leveraged our group scale to secure key new locations for the Tapestry brands,” said TFG CEO Anthony Thunström.
“The acquisition seeks to provide the group with exposure to new and diverse products and categories, as well as gaining new customers to complement the TFG customer base in existing categories.
“The transaction is in line with TFG’s stated strategy of vertical integration in key product categories and the continued development of its quick response local manufacturing capability.”
The group, which has a market value of R39-billion on the JSE, said its gross profit surged 24.8% to R11.6-billion, noting that its Australian business registered turnover growth of 48.7% during the period.
The company, like many retail groups in the country, was hamstrung by the ongoing loadshedding, losing 132 000 trading hours during the first half of the financial year.
However, Thunström said the group is investing in back-up power solutions which have been installed across stores throughout the country.
“The group continues to demonstrate its resilience and agility and is best positioned to trade through cyclical headwinds and stretched consumer wallets in all our territories. We continue to invest in our key strategic initiatives to further strengthen our differentiated business model.
“We have made progress on our strategic objectives and speciality brand business portfolio, and continue to eye organic and inorganic growth opportunities. A specific focus will be on the Tapestry business to maximise the value from our investment,” Thunström said.
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