South African retailer Woolworths Holdings has booked an increase in first-half profits, boosted by favourable currency swings and robust spending over the Christmas period.
For the six months to 25 December, net profits climbed 63.2% to ZAR1.19bn (US$153.6m). Operating profits grew 27.8% to reach ZAR1.4bn.
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Group sales for the period increased 11.4% to ZAR14.21bn with stronger growth in the second quarter, particularly over the festive season. Sales growth was leveraged by improved gross margins and the favourable foreign exchange impact of a weaker rand.
Food sales grew ahead of the market at 11.7%, with comparable store sales up 8.4%.
“We believe that economic conditions in South Africa will remain constrained,” the company said. “However, trading for the first six weeks of the second half of the financial year has been positive, and we expect sales growth to be broadly in line with the first half.”
In Australia, Woolworths said it expects the current competitive retail environment to continue and sales for the second half to be in line with the first-half performance.
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