JOHANNESBERG, Mar 4 – Woolworths Holdings reported higher half year earnings, supported by strong demand for premium food products during the Black Friday period and the festive season.
Headline earnings per share rose to 167.4 cents in the 26 weeks ended December 28, up from 152.8 cents in the same period a year earlier. The company also recorded a 3.2 percent increase in adjusted earnings before interest, tax, depreciation and amortization to 4.6 billion rand.
Group turnover and concession sales increased 5.4 percent to 42.5 billion rand on a constant currency basis. The retailer said growth was driven by positive sales across all business segments, including its food and apparel divisions.
The company stated that improved performance in its apparel units contributed to the results, following ongoing operational changes. Its food business continued to grow above the market, supported by higher consumer demand during key retail periods.
However, Woolworths said trading conditions remained constrained in its main markets, South Africa and Australia. Its Australian fashion business faced pressure from a highly competitive retail environment, where heavy discounting weighed on margins.
Gross profit margins came under pressure due to sustained investment in capacity, increased online sales, and higher promotional activity to clear excess inventory in the fashion segment, the company said.
Despite these pressures, Woolworths declared an interim dividend of 118 cents per share, up 10.3 percent from the prior period.
