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JOHANNESBURG - South African retailer Woolworths Holdings reported a 9.6% rise in half-year headline earnings on Wednesday, benefitting from strong demand for its upmarket food products over Black Friday and the festive season and the revampingof its fashion units.
Headline earnings per share rose to 167.4 cents in the 26 weeks ended December 28 from 152.8 cents in the prior period. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) rose 3.2% to 4.6 billion rand ($277.27 million).
"The group's interim results reflect the ongoing progress in various strategic initiatives, with improving performance in the apparel businesses and continued above-market growth in the food business," the retailer said.
This is notwithstanding a constrained trading environment across both the companies' key markets South Africa and Australia, with its Australian fashion business trading in a highly discount-driven retail sector.
Group turnover and concession rose 5.4% to 42.5 billion rand ($2.56 billion), or 6.1% in constant currency terms, buoyed by positive sales growth in all segments of the business.
Gross profit margins across Woolworths' businesses have, however, been under pressure, due to a combination of long-term capacity investment, stronger growth in lower margin categories and channels such as online shopping and increased promotions to clear excess inventory in the fashion businesses, Woolworths said.
The retailer declared an interim dividend of 118 cents, up 10.3%.
($1 = 16.5903 rand)



















