S AFRICA: Woolworths books rise in H1 profits

By: just-food.com | 18 February 2010

Woolworths books 4.9% profit rise

Woolworths Holdings booked a rise in first-half profits today (18 February) but sounded a cautious note on the South African and Australian markets.

Profits grew by 4.9% to ZAR11.69bn (US$1.53bn) for the 26 weeks to 27 December.

Adjusted headline earnings per share, which excludes the post-tax foreign exchange impact of ZAR41.6m, increased by 13.8% to 80.1 cents per share.

Net sales increased 9.3% to reach ZAR11.55bn, while food sales increased by 8.9%, with a gain in market share in the last two months of trade.

Comparable store sales for the food division increased by 4.7%, while operating profit margin increased to 3.8% from 3.4% in the previous year, driven by repositioned prices and value offering.

CEO SN Susman said: “Conditions in South Africa and Australia will remain challenging. In South Africa, the upper income consumer is more confident. As we move out of recession, the group is better positioned to take advantage of any upliftment in consumer spending.”