Skip to main content

Woolworths Holdings announces results for 26 weeks to 27 December 2015

| Retailer trading results

Revenue increased by 17.1% to R35.5 billion (up 12.3% excluding David Jones) and pre-tax profit grew by 16.5% to R3.4 billion. Headline earnings per share grew by 30.6% to 251.7cps.

The directors have declared an interim cash dividend of 133.0 cents per share, which is an increase of 37.8% on the same period last year.
Clothing and General Merchandise had a much improved half, with sales growing 12.5% in South Africa and Clothing sales up 11.7%. Operating profit increased by 14.6%. These results are driven by a good performance from core womenswear and menswear categories and a strong improvement from kidswear.
The Food division once again delivered a strong performance, with sales up 12.1% and operating profit up by 17.6%.  The supermarket strategy is proving successful and Christmas sales were strong.
David Jones had a strong first half performance with improved merchandising and the expansion of the Group’s private label brands across the chain. Sales (including concession sales) grew by 11.2% on a 26-week basis, well ahead of both the Australian department store and specialty clothing market. Sales in comparable stores grew by 9.7%. Despite the inclusion this year of the clearance month of July, significant once-off costs associated with the launch of private label and other transformation projects, the contribution to profit across the Group from David Jones increased by 19%.
Country Road Group sales in Australasia grew by 13.4% and by 0.1% in comparable stores, despite a disappointing performance by Country Road womenswear. Operating profit increased by 5.2%, which includes the additional profit from the successful launch of Country Road Group brands into David Jones.
The Woolworths Financial Services debtors’ book grew by 7.8%, with an annualised impairment rate for the six months ended 31 December 2015 at 4.8% (six months ended 31 December 2014: 4.8%).
Commenting on the results, WHL Chief Executive Ian Moir said:
“We are pleased with this set of results. Despite the tough trading conditions, our businesses continue to perform well ahead of the market. There has been a strong turnaround in the South African Clothing business following corrective management action, and the transformation of David Jones continues to deliver the results we expected. Through our positioning as a leading Southern Hemisphere retailer, we are able to leverage our scale and global sourcing strategy to deliver quality products at competitive prices for our customers.”

Related Articles

Spar’s IT system failure has cost the company R...

By: IOL News Local retailer Spar has been hit hard this financial year and said on Thursday that it will have to withhold a final dividend to save cash after a huge IT system failure this year.

Tough decisions made, sets the tone for a more ...

The SPAR Group lifted turnover 10.1% to R149.3 billion (2022: R135.6 billion) for the year ended 30 September 2023. This was largely driven off the back of strong performance from the Irish business which saw growth of 21.9% in ZAR terms. Souther...

Woolies’ online grocery sales surge

By: Myles Illidge – My Broadband Woolworth’s trading update for the 20 weeks ended 12 November 2023 has revealed that the increased penetration of its Woolies Dash food delivery service resulted in a significant increase in online sales.

Dis-Chem reports group revenue growth of 9.4% t...

In the six-month period ending 31 August 2023, Dis-Chem reported Group revenue growth of 9,4% to R17.9 billion over the corresponding half year period to 31 August 2022.

Clicks shares soar as it clocks in higher marke...

By Dieketseng Maleke - IOL Clicks’ share price surged 8% yesterday after it reported record market share gains and a hike in earnings.