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Verimark returns to profit in first half, but no dividend

13 Oct 2016

Direct response retailer Verimark returned to profit on flat sales in the six months to end-August, it reported on Wednesday morning.

Verimark CEO Michael van Straaten.

Picture: Financial Mail

It reported a R2.5m aftertax profit compared with a loss of R3.6m in the previous matching period.

Revenue grew 0.5% to R184.4m, which the company said was due to a weaker rand making imported goods more expensive. Sales volumes were largely unchanged.

"It became necessary for Verimark to increase selling prices in mid-February 2016. These price increases were greater than the prior year’s increase implemented in February 2015, which impacted sales growth, but resulted in improved gross profit margins," the company said.

Headline earnings per share were 2.2c from the previous matching period’s 3.6c headline loss.

Verimark said the closure of its Singapore operations was in its final stages and should be completed within the next few months.

It was exploring a number of diversification strategies locally and internationally, it said. It was also testing the sourcing of locally produced products.

No dividend was declared.

Source: Business Day

Source: I-Net Bridge

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