Woolworths hikes dividend as margins pick up
Despite SA volume pressure
Total group turnover rose 7% to R85.7 billion, with headline earnings per share rising 29% to 514.7c.
Woolworths has hiked its full-year dividend payout by more than a third thanks to double-digit earnings growth, with margins picking up even though it experienced some volume pressure in its food and fashion businesses.
The JSE-listed retailer, which reported results for the year to 25 June on Wednesday, was also boosted by the sale of Australian fashion business David Jones in March, but also had to contend with higher costs and increased food waste due to South Africa's ongoing power interruptions.
Total group turnover rose 7% to R85.7 billion, the group said, with headline earnings per share rising 29% to 514.7c. The group upped its total dividend just over 36% to 313c.
The group's shares slipped over 4% in early trade on Wednesday but have still gained about 37% over the past one year.
The company, which jettisoned its David Jones business at the end of March, said the results were not strictly comparable with the previous year's results, due both to the sale of the Australian department store chain, as well as a low base being created previously by the imposition of Covid-19 lockdowns in Australia.
The company said total proceeds on the disposal was R1.129 billion, with it reporting a profit on disposal of R411 million.
As far as the impact of load shedding in South Africa was concerned, Woolworths said the country's power crisis "continues to have a pronounced impact on our economy, as well as our business and consumer confidence".
It said it had particularly affected its fresh food business, resulting in increased waste and higher overall costs because of a significant rise in diesel costs in its supply chain and store network.
Both its southern African fashion, beauty and home (FBH) business and its food operation experienced volume pressure.
Turnover and concession sales at FBH grew by 8.9% and 8.3% on a comparable store basis, with Woolworths passing on price increases of 11.6%. This implies volumes went backwards, with Woolworths also noting that its second-half sales growth slowed to 6.7% and 5.6% on a comparable store basis.-Fin24
The JSE-listed retailer, which reported results for the year to 25 June on Wednesday, was also boosted by the sale of Australian fashion business David Jones in March, but also had to contend with higher costs and increased food waste due to South Africa's ongoing power interruptions.
Total group turnover rose 7% to R85.7 billion, the group said, with headline earnings per share rising 29% to 514.7c. The group upped its total dividend just over 36% to 313c.
The group's shares slipped over 4% in early trade on Wednesday but have still gained about 37% over the past one year.
The company, which jettisoned its David Jones business at the end of March, said the results were not strictly comparable with the previous year's results, due both to the sale of the Australian department store chain, as well as a low base being created previously by the imposition of Covid-19 lockdowns in Australia.
The company said total proceeds on the disposal was R1.129 billion, with it reporting a profit on disposal of R411 million.
As far as the impact of load shedding in South Africa was concerned, Woolworths said the country's power crisis "continues to have a pronounced impact on our economy, as well as our business and consumer confidence".
It said it had particularly affected its fresh food business, resulting in increased waste and higher overall costs because of a significant rise in diesel costs in its supply chain and store network.
Both its southern African fashion, beauty and home (FBH) business and its food operation experienced volume pressure.
Turnover and concession sales at FBH grew by 8.9% and 8.3% on a comparable store basis, with Woolworths passing on price increases of 11.6%. This implies volumes went backwards, with Woolworths also noting that its second-half sales growth slowed to 6.7% and 5.6% on a comparable store basis.-Fin24
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