Departure of CFO ‘inevitable’ as Mr Price counts its costs:
Just a month after Mr Price reported a financial bruising, the retail group has announced the departure of its chief financial officer, Mark Stirton.
Mr Price did not reveal why Stirton stepped down, saying only that the decision was made on mutually agreed terms and that he will remain with the group until March 2024 “to facilitate a comprehensive handover of his duties”.
Stirton served in the position for almost five years. During his tenure, which was punctuated by an economy-bashing pandemic and capped off by a cost-of-living crisis, the group’s share price fell 32%.
In the year ended 31 March 2023 Stirton, as well as Mr Price chief executive Mark Blair, saw significant declines in their remuneration, with the retailer reporting that it failed to meet its financial objectives.
Ron Klipen, portfolio manager at Cratos Asset Management, said Stirton’s departure was not surprising given Mr Price’s failure to meet market expectations. The change in senior management signals that the group faces major difficulties both on the macro front and from a sectoral point of view, he said.
The retailer also looks to be losing market share in some of its operations. “You’ve got competition entering the market. Look at Pick n Pay clothing. Though it’s still small, competitors like that appear to be taking some market share away from Mr Price in apparel.”
Major competitors, such as the Pepkor Group, have also reported major headwinds, Klipen noted. “Against the backdrop of weak spending, as a result of financially stretched consumers, priority spend has been towards food and beverages, resulting in reduced spend on apparel. So management changes are inevitable.”
The apparel market has proven hard to crack, with Woolworths having a difficult time getting its clothing business right. The Foschini Group’s share price is only marginally higher than it was a decade ago, while Truworths’ share price has slipped almost 15% in that period.
Meanwhile, smaller competitors have emerged. In the 2023 financial year, Pick n Pay clothing opened 59 standalone stores, after having experienced somewhat of a resurgence. Earlier this year, Shoprite opened its first standalone clothing store under its new fashion brand, UNIQ.
“There appears to be a change in the market for apparel, with more and more competition, with consumer spending really constrained on the back of a very low growth in the South African economy,” Klipen said.
In Mr Price’s integrated report, released at the end of June, Stirton noted that South Africa’s retail landscape over the financial year was fiercely contested amid tumultuous economic conditions. The landscape, the report later noted, has changed fundamentally since the pandemic, because competition has intensified and digital adoption has increased.
“New apparel and homeware retail challengers emerged, combined with the resurgence of older retail names who carry strong brand equity in the hearts and minds of South African consumers,” Stirton said.
Mr Price reported a disappointing 5.4% increase in earnings before interest, taxes, depreciation and amortisation, which it attributed to the effect of load-shedding. Headline earnings per share dropped by 6%.
Mr Price’s financial performance may have been worse were it not for its acquisition of fashion and footwear retailer Studio 88, which, according to Stirton, buoyed the business during the second half of the year.
He said retail conditions are expected to remain challenging, particularly for the first half of the 2024 financial year. He added that the group’s current performance is regarded as transitory, not structural.
Off the back of a considerably lower inflation print in June, the South African Reserve Bank’s monetary policy committee held the prime lending rate at 11.75% following 10 consecutive hikes. Despite this change in fate, some analysts believe there will still be a long wait before interest rates begin to fall from a 14-year high.
With consumer confidence hitting historic lows, retailers have struggled. In May, retail trade sales fell further than expected, by 1.4% year-on-year, following April’s 1.8% slide. May was marked by a painful 50 basis point interest rate hike, which brought the cost of borrowing into the restrictive terrain in which it remains.
In a more recent trading update, covering the 13 weeks ended 1 July 2023, Mr Price reported increased momentum in its retail sales, largely as a result of Studio 88’s inclusion.
But the trading update noted that this growth will not directly translate into gross and operating profit growth, because of higher markdowns and the fact that Studio 88 has a lower margin structure than the core business. Higher markdowns suggest Mr Price has been off the mark with its fashion decisions.
The trading update suggested that the retail landscape will continue to be tough, noting that South Africa’s growth will probably remain muted for the remainder of 2023. Disposable income, it noted, is only anticipated to meaningfully improve in 2024, as inflation eases further and interest rates retreat.
Prior to it falling on tough times, Mr Price made people a lot of money, said Makwe Masilela, of Makwe Fund Managers. In 2018, the group’s share price came close to R300, nearly double its current value.
Masilela agreed that increased competition has made it far more difficult for Mr Price to maintain a solid footing. Like other South African apparel retailers, Mr Price has also not always got its fashion mix quite right, he added.
That said, as economic strain starts to subside — and as the group’s broader reach through Studio 88 and Yuppiechef pays off — Mr Price could forge a path towards better growth, Masilela noted.
Although economic conditions have had a big part in the lacklustre performance of clothing retailers, management blunders have also had an effect. “Some of the troubles are the result of management decisions — whether it be that they have overspent buying into something new, or taking too much time to expand, or expanding in the wrong way,” Masilela said.
“Generally they have done okay. But, at the end of the day, there are people who are making the decisions …. The likes of Mr Price, Woolworths and Foschini have people making decisions. So it is always important, when you are looking at a company, to also scrutinise their management.”
– Departure of CFO ‘inevitable’ as Mr Price counts its costs | The Mail & Guardian
Choosing the right battery for your solar system:
Selecting the right battery is crucial for optimal performance and efficiency
Solar power is on trend as a free and sustainable energy source. You may have already installed a solar system on your roof and are benefiting from it. But having merely a solar system isn’t a sure card. What if there’s a long power outage occurring, and it’s on a rainy day?
Invest in a battery, and all is settled.
Why you need a battery for your solar system
Without an efficient battery, excess solar power is wasted. And you don’t have enough power when the sun isn’t shining.
Storing extra solar energy in batteries, however, allows you to use it later at any time, reducing your dependence on the grid and saving on utility bills. Some batteries support grid connection and allow you to sell the excess energy back to the grid, so you can even earn money from your solar system.
Common types of batteries for solar systems
Let’s explore some of the mainstream battery types and their features:
Lead-Acid batteries
Lead-acid batteries have been in use for a long time and are relatively affordable. They offer high surge currents and have a relatively high energy density. But they have a shorter lifespan and require regular maintenance.
Nickel-cadmium batteries
Nickel-cadmium batteries are known for their durability and ability to withstand extreme temperatures. They have a long lifespan and high efficiency of charge/discharge. However, they are expensive and contain toxic materials.
Lithium-ion batteries
Lithium-ion batteries are widely used in rechargeable electronics and electric vehicles. They are lightweight, require minimal maintenance, and offer high energy density. Two main lithium-ion types, lithium nickel manganese cobalt oxide (NMC) and lithium iron phosphate (LFP), are the most popular for solar energy storage.
The NMC batteries are relatively lighter and have a higher energy density. The LFP batteries deliver nearly five times as many charge cycles as NMC batteries and are less prone to catch fire.
Why choose a LiFePO4 battery?
LiFePO4 batteries stand out as a favorable option for solar systems; they are safer, more stable, and have an impressive lifespan of up to 3 500 cycles, making them a long-term investment for solar system owners.
Some of the top LiFePO4 battery solutions
There are many batteries on the market, and BLUETTI emerges as a leading provider of portable, home and commercial battery solutions. In addition to the inherent benefits of LiFePO4 batteries, BLUETTI battery systems offer some outstanding features.
Self-heating function
Certain BLUETTI products, such as the B300S additional battery for the AC500, are equipped with temperature sensors that enable self-heating in extremely cold weather. This function ensures the entire system operates smoothly, even in harsh winter conditions with temperatures as low as -20° C.
Integrated power system
BLUETTI battery solutions can be complete power systems that integrate MPPT controllers, efficient inverters, multiple outlets, and more. Coupled with many other useful features, such as the UPS function, peak load shifting, and off/on grid connection, BLUETTI battery systems can provide uninterrupted power for all needs.
Wide compatibility
BLUETTI battery systems are widely compatible with existing or new solar systems. They vary in size, capacity, power and solar charging capability, providing different options.
How to choose the right battery system?
For residential solar systems
Large solar systems on rooftops of homes or farms typically generate more power for large energy consumption and require more storage capacity. In these cases, BLUETTI recommends its EP500Pro and AC300 battery systems. Both batteries offer a high power output of up to 3 000W and can easily power most household appliances. Both battery systems support a 2 400W solar input that could maximise free sunlight. They are also easy to use, just plug and play.
Their main difference lies in their capacity flexibility. Modular in design, the AC300 works with 1 to 4 B300 batteries for a flexible capacity ranging from 3 072Wh to 12 288Wh, allowing you to tailor your battery system to your needs. The EP500Pro, meanwhile, packs 5 120Wh of power into a complete suitcase-style system. The good news is that it can be rolled to wherever you need it with its four sturdy wheels.
For balcony/RV solar systems
Balcony and RV solar systems are popular now; they usually have smaller solar arrays for partial independence from the utility. BLUETTI AC200MAX and EB series (EB3A and EB55) battery systems are designed for these setups. These batteries are compact, portable and provide sufficient power for various occasions.
The flagship AC200MAX can deliver 2 200W from its 2 048Wh built-in battery. You can expand its capacity to 6 144Wh with two additional 2 048Wh B230 batteries. That could store a punch while being easily transportable. Its 900W solar charging feature keeps you powered as long as the sun shines.
The EB3A and EB55 are made for easy power on the move. Small but versatile, they are grab-and-go power centres with a variety of output options that can charge anything you plug in.
In conclusion, selecting the right battery for your solar system is crucial for optimal performance and efficiency. LiFePO4 batteries, such as those offered by BLUETTI, provide outstanding safety, stability and long-term cost performance. Whether you have a household or small-scale solar system, BLUETTI offers top-notch battery solutions tailored to your needs.
About BLUETTI
BLUETTI has been committed to promoting sustainability and green energy solutions since its inception. By offering eco-friendly energy storage solutions for both indoor and outdoor use, BLUETTI aims to provide exceptional experiences for our homes while also contributing to a sustainable future for our planet. This commitment to sustainable energy has helped BLUETTI expand its reach to over 100 countries and gain the trust of millions of customers worldwide.
For more information, please visit BLUETTI online at https://bit.ly/473o4J4
– Departure of CFO ‘inevitable’ as Mr Price counts its costs | The Mail & Guardian
EXCLUSIVE: De-dollarisation debate is ‘just talk’ says Victoria Nuland:
US acting deputy secretary of state Victoria Nuland downplayed talks of de-dollarisation during a sit down interview with the Mail & Guardian this week.
Nuland is in the country leading a US delegation participating in the US-South Africa Working Group on African and Global Issues (WGAGI).
According to a statement from Washington, this is the third year Nuland has led the bi-lateral engagement. Her visit also entailed meetings with government leaders in the energy sector.
In a wide-ranging interview with the M&G, Nuland said that the US was a “strong believer” in the greenback, and its work for “global good”.
Talks of South Africa, the African continent and some emerging economies moving away from the dollar as the world’s reserve currency has intensified with the Russian war on Ukraine.
President Cyril Ramaphosa and his Brazilian counterpart, Luiz Inácio Lula da Silva, raised the matter during the finance summit in Paris last month.
Ramaphosa said that the move away from the dollar as the world’s primary reserve currency for global trade would be discussed at the Brics summit taking place in South Africa this month.
During a meeting of Brics foreign ministers in June, the bloc stated that its meeting underscored the importance of encouraging the use of local currencies in international trade and financial transactions between Brics as well as their trading partners.
Defending the dollar, Nuland said that it had been a balancer around the world.
“It’s not an easy thing to start something new in the financial realm. Leaders will obviously talk about it and they have a right to look at those things. I don’t think it’s as easy a path as some think it is from here to there,” she said.
Speaking at a Brics symposium in May, International Relations Minister Naledi Pandor said that moving away from the dollar was becoming an increasingly more common discussion.
She said the conversations were not about weakening the dollar, but rather about empowering other currencies.
“I have not seen it as a negative discussion, you know, anti-dollar. It’s about whether it is possible to develop a system in which other currencies may be able to be used for international trade,” she said.
Pandor conceded, however, that the move would not be easy.
With the expansion of Brics to include more emerging economies such as Egypt, Argentina, Turkey, Pakistan and Saudi Arabia on the agenda, the summit is expected to result in further pressure to reassess the dollar’s dominance.
According to M&G contributing columnist Dr Imran Khalid, the failure, or reluctance, of the West to reform global governance in a way that grants emerging economies, such as China, greater influence has only compounded grievances.
Khalid said Brics nations seek a currency that ensures accessibility and equitable treatment in global trade, aiming to address the US dollar’s role as a tool for American hegemony, which they believe creates economic instability and hampers global recovery.
Nuland also came to the defence of the US and its handling of the Covid-19 pandemic.
Ramaphosa has over the years relayed how rich countries from the northern hemisphere bought all of the Covid vaccines, hogging them to the detriment of the global south.
During the Paris finance summit, Ramaphosa said he recognised efforts by the US to supply vaccines, “but there have been times when we felt like we were beggars”.
“We felt like we were begging and at times it felt like there would just be droppings from the table. Let me tell you, [that was] something that generated a lot of resentment. We resented that, and it got worse when we said we want to manufacture our own vaccines.
“And when we went to the World Trade Organisation, there was a lot of resistance, enormous resistance,” Ramaphosa told French president Emmanuel Macron.
But Nuland said the US was “massively generous” in supplying US-manufactured vaccines to South Africa and other countries.
“In 2021 I was here and we were already on our second or third shipment. More importantly, working with countries including South Africa to develop your own vaccine capability, vaccine supply chain, because we understood that none of us was resilient against the pandemic. We were strong supporters of indigenous vaccine capability and the development of the chain that goes with that on the continent,” she said.
“We kept saying: ‘What is more important? Life or profits by your big pharmaceutical companies?’ That too, I must tell you, generated and deepened the disappointment and resentment on our part, because we felt like life in the northern hemisphere is much more important than life in the global south.”
– Departure of CFO ‘inevitable’ as Mr Price counts its costs | The Mail & Guardian
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