The group reported a 6.2% increase in gross profit to R2.2bn and pro forma adjusted earnings before interest‚ tax‚ depreciation and amortisation were up 9.3% to R481m.
"Edcon has continued to improve performance while we execute our strategic change agenda in the Edgars division to position the group for future growth‚" said chief executive Jürgen Schreiber.
"Our results were positively impacted by the discount division‚ which delivered an improvement in sales and profitability through consistent execution of its turnaround strategy. The implementation of the 72-store transformation project in Edgars remained disruptive in the quarter‚ but is now almost complete‚" he said.
He said the refurbishment programme was being augmented by store-optimisation and people initiatives‚ while the roll-out of new brands in both refurbished and mono-branded stores had started to gain momentum.
During the second quarter of its financial year‚ Edcon's total revenues increased 7.3% because of improved trading performances and good growth in income from the insurance joint operation with Hollard.
Same-store sales increased by 1.2% after strong cash sales of 17.4%, achieved despite the temporary disruption of the refurbishment initiatives in the Edgars division and a 4.3% reduction in credit sales for the group. "This was a positive reflection of the in-store and Thank U loyalty offerings‚ which now had more than 10m card holders," the group said.
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