Skip to main content

Woolworths Foods standout performer as retailer reports 54.5% fall in profits

| Retailer trading results

Woolworths Foods stood out as the star performer for the struggling retailer, which reported a 54.5% drop in profits to R2.2 billion after changes in accounting standards for the 52 weeks to end June 18. Headline earnings per share (HEPS) fell 64.8% to 116.2 cents.

Sales at the Cape Town retailer's Food unit grew 10.7% with online sales for the year growing 57.2%, the company said in a statement on Thursday. This compares with a 10.7% fall in sales in its Fashion, Beauty and Home unit.

Its troubled Australian retailing operation, David Jones, saw sales decline 17.2% in the second half of the year, ending the full year down 6.4%. Country Road sales in the second half also declined by 25.6%, ending the year down 14.3% on the  prior year.

Woolworths said the year was characterised by the disruption of Covid-19 pandemic which significantly impacted the performance of the group during H2.

"The challenges posed by the crisis galvanised our teams to work together as we successfully implemented numerous initiatives to stabilise our operations and cash flows and strengthen our balance sheet," said CEO Roy Bagattini.

It is imperative though, that we to actively learn from this crisis and reassess our strategies, particularly in the context of a fast-evolving customer shopping ecosystem where we’re seeing an accelerated shift to online and accentuated levels of digital engagement with 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.