Woolworths turnover up 23.2 per cent from strong sales - CNBC Africa

Woolworths turnover up 23.2 per cent from strong sales

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The retail store chain, which released results on Thursday, recorded that profit before tax grew 27.1 per cent to 3.6 million rand from the previous comparative year’s 2.8 million rand.

Headline earnings per share also grew 27.3 per cent to 340.4 cents from 267 cents last year.

“The strong sales growth experienced in the first half of the year continued through into the second half despite the pressure on the SA consumer,” the company said in a statement.

“Sales growth was leveraged by improved gross margins in both the South African and Australian clothing businesses, benefiting from improved sourcing, delivering group profit before tax growth of 27.1 per cent.”

Woolworths Clothing and General Merchandise revenue grew by 12.3 per cent to 10.7 million rand from 9.5 million rand in the previous comparative year, and its Woolworths Food segment revenue grew 15.4 per cent to 17.4 million rand from the previous year’s 15.4 million rand.

Their County Road Group’s revenue grew to 6.4 million rand from the previous year’s 3.3 million rand.

In October last year, the group purchased all of the ordinary shares of Witchery Australia Holdings Pty Ltd and its subsidiaries ("Witchery"), for a total value of 1.5 million rand, an equivalent of 180.9 million Australian dollars.

Witchery boosted second quarter sales and from the date of acquisition, Witchery has contributed 2.1 million rand in revenue.

Woolworths’s financial services overall debtors' book had year-on-year growth of 15.8 per cent.

Total gross profit for the group was recorded at 13.5 million rand from the previous year’s 10.1 million rand. A gross cash dividend of 148.0 cents was declared.

Operating profit was recorded at 3.4 million rand for the 53 weeks to June 2013 from the previous comparative year’s 2.6 million rand.

 Expenses were however up to 10.1 million rand from last year’s 7.6 million rand for the same period.

During the year, the group acquired eight previously franchised stores in Lesotho and Kenya for a cash consideration totalling 67 million rand.