JSE-listed Long4Life delivered a reasonable performance for the six months ended August 31, given the difficult trading environment.
Revenue increased by 20% year-on-year to R1.84-billion, while gross profit increased to R718.9-million, compared with the R627.5-million gross profit reported for the six months ended August 31, 2018.
The gross margin was 39.1%, compared with the gross margin of 40.9% in the prior comparable period.
Headline earnings a share decreased to 15.4c, compared with 16c in the prior comparable period, while trading profit was relatively flat at R176.2-million, at a reduced margin of 9.6% compared with 11.6% in the prior period.
The group has continued to invest in infrastructure, store development and marketing to enhance the competitiveness and sustainability of the businesses. This additional expenditure impacted on both margins and returns in the short term, resulting in a return on funds employed of 38%.
Notwithstanding that the trading environment is expected to remain difficult, with constrained consumer spending, management remains confident of the group's ability to execute in terms of its strategic imperatives.
Long4Life is targeting earnings growth for the full year, which it notes is underpinned by strong brands and services that remain appealing to many consumers.
Given the seasonality of the businesses, the divisions traditionally have higher operating leverage in the second half of the year.
The group's balance sheet strength continues to provide opportunities to assess internal and external possibilities.