Lewis Group has delivered an impressive financial performance for the year ending March 2025, reporting strong growth across multiple areas of its business. The company’s total revenue rose by 13.5% to R9.3 billion, supported by a 9.2% increase in merchandise sales, which reached R5.1 billion. A major driver of this growth was a notable surge in credit sales, which jumped by 12.1%, while cash sales grew at a slower pace of 3.4%. The group also saw a 19.1% rise in other revenue streams, such as interest income, service fees, and insurance products, all benefiting from its expanding credit business. Operating profit soared by nearly 67% to R1.2 billion, and headline earnings per share climbed by 60.3%, enabling a final dividend hike of 66.7% to 500c per share.
The group’s debtors’ book continues to strengthen, with the percentage of satisfactory-paying customers reaching an all-time high of 83.5%. Additionally, its collection rate now stands at 78.9%, while non-performing credit accounts declined from 5.5% to 4.1%. This improved financial health has positioned Lewis to reinvest confidently in its operations. Over the past year, it expanded its store network to 918 outlets, including 33 new stores and 16 acquired through the successful integration of Real Beds, a cash retail bed specialist with branches in South Africa and Botswana. Real Beds’ addition has helped bolster Lewis’s speciality retail segment alongside brands such as UFO and Bedzone, which together contributed R532.8 million in merchandise sales. Sales from stores outside South Africa rose by 11.9%, making up 18.3% of overall group merchandise sales.
Looking ahead, Lewis Group is optimistic about consumer appetite for credit, particularly in a tough economic climate. The company plans to expand further by opening at least 20 traditional retail stores and 20 new specialist bed stores in the next financial year. It also continues to modernise its retail environment, having already refurbished 170 outlets during the current period to maintain a fresh and attractive in-store experience. Management has reaffirmed its commitment to long-term growth through disciplined credit strategies, store network expansion, and customer-focused marketing. Despite broader retail challenges, Lewis’s results show that its approach to balancing credit growth with risk management and customer experience is paying off. The company appears well-positioned to sustain its momentum into the year ahead.