Retail giant Woolworths reported revenue growth of 55.2% to R30.3-billion boosted by its acquisition of Australian company David Jones, but the company sounded alarm bells that load-shedding could hamper sales in the coming year.
Woolworths results for the 26 weeks to December 28 2014 have shown a 29.8% increase in pre-tax profit to R2.9-billion, while basic and headline earnings grew 9.5% and 14.7% respectively and include the consolidation of David Jones and the full ownership of the Country Road Group.
The company’s adjusted headline earnings – excluding mainly acquisition-related transaction costs – grew 40.3% and by 29.3% on a per-share basis due to the increase in the number of shares in issue resulting from the group’s R10-billion rights offer, completed in September 2014, Woolworths chief executive Ian Moir said.
The directors have declared an interim cash dividend of 96.5 cents per share, which is in line with the restated dividend from last year.
“This is a good set of results, with all business units performing ahead of the market despite current tough trading conditions,” Moir said. “We believe that economic conditions in South Africa will remain constrained ... sales may be further impacted by load shedding.”
Moir said the upper income segment in which Woolworths operates continues to show resilience.
“We continue to trade ahead of the market and trading for the first six weeks of the new financial year has been positive.”
The company said its food division “delivered an excellent performance”, with sales up 14.1% and operating profit up by 24.3%.
“The larger supermarket format is working well and the food division has now delivered above market growth every month since September 2011,” said Moir. “Woolworths Financial Services saw growth in the debtors book of 10.5%, with the impairment rate including collection costs normalising – but still at an industry leading level – at 4.8%. Profit before tax increased by 34.7%.”
Moir said the company was progressing well with the integration of David Jones and the full ownership of the Country Road Group, which has positioned it as “a leading southern hemisphere retailer and makes us better able to compete with the ever increasing presence of northern hemisphere retailers”.
Sales rose by 2.0% in Australian dollar terms and profit of A$107-million (R970-million) was 10.3% higher than the comparable period, he said.
“The Country Road Group saw overall sales up 9.2% in Australian dollar terms.
“New and larger concession pads for all four brands are currently being introduced into David Jones stores, in line with our acquisition strategy,” said Moir.
“In Australia there are early signs of an improved retail environment and we expect sales in both David Jones and the Country Road Group to be ahead of the market.” — siyam@dispatch.co.za
Woolworths move sees sales rocket
Woolworths results for the 26 weeks to December 28 2014 have shown a 29.8% increase in pre-tax profit to R2.9-billion, while basic and headline earnings grew 9.5% and 14.7% respectively and include the consolidation of David Jones and the full ownership of the Country Road Group.
The company’s adjusted headline earnings – excluding mainly acquisition-related transaction costs – grew 40.3% and by 29.3% on a per-share basis due to the increase in the number of shares in issue resulting from the group’s R10-billion rights offer, completed in September 2014, Woolworths chief executive Ian Moir said.
The directors have declared an interim cash dividend of 96.5 cents per share, which is in line with the restated dividend from last year.
“This is a good set of results, with all business units performing ahead of the market despite current tough trading conditions,” Moir said. “We believe that economic conditions in South Africa will remain constrained ... sales may be further impacted by load shedding.”
Moir said the upper income segment in which Woolworths operates continues to show resilience.
“We continue to trade ahead of the market and trading for the first six weeks of the new financial year has been positive.”
The company said its food division “delivered an excellent performance”, with sales up 14.1% and operating profit up by 24.3%.
“The larger supermarket format is working well and the food division has now delivered above market growth every month since September 2011,” said Moir. “Woolworths Financial Services saw growth in the debtors book of 10.5%, with the impairment rate including collection costs normalising – but still at an industry leading level – at 4.8%. Profit before tax increased by 34.7%.”
Moir said the company was progressing well with the integration of David Jones and the full ownership of the Country Road Group, which has positioned it as “a leading southern hemisphere retailer and makes us better able to compete with the ever increasing presence of northern hemisphere retailers”.
Sales rose by 2.0% in Australian dollar terms and profit of A$107-million (R970-million) was 10.3% higher than the comparable period, he said.
“The Country Road Group saw overall sales up 9.2% in Australian dollar terms.
“New and larger concession pads for all four brands are currently being introduced into David Jones stores, in line with our acquisition strategy,” said Moir.
“In Australia there are early signs of an improved retail environment and we expect sales in both David Jones and the Country Road Group to be ahead of the market.” — siyam@dispatch.co.za
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