TFG gets R700m profit bump from Jet acquisition

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The fashion group recognized a hefty gain on purchase in its acquisition of commercially viable Jet stores, but has swung into a headline loss

The fashion group, which recognised a hefty gain on purchase in its acquisition of commercially viable Jet stores, has swung into a headline lossreceived a large profit bump from its acquisition of Jet stores, recognising an almost R700m accounting gain from the deal.

Though an accounting measure, this is some indication of the value that TFG may have unlocked from the deal.commercially viable Jet stores; the transaction proceeded in September, with TFG picking up 425 stores across Southern Africa. Headline earnings is a widely used profit measure in SA, and excludes certain one-off items to better represent underlying performance.

TFG said the outlook for trading conditions remained uncertain as consumer confidence remained under pressure and further lockdowns as a result of the second wave of Covid-19 infections have already been experienced in TFG Australia, and are being experienced in TFG London at present.

 

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