S.Africa's Woolworths lifts H1 profit by 29% - CNBC Africa

S.Africa's Woolworths lifts H1 profit by 29%

Earnings

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Woolworths generates positive results. PHOTO: Cape Town Daily Photo

This was reported in the company’s results for 26 weeks to 28 December 2014.

“We are progressing well with the integration of David Jones and the full ownership of the Country Road Group, which has positioned us as a leading Southern Hemisphere retailer and makes us better able to compete with the ever increasing presence of Northern hemisphere retailers,” said Ian Moir, chief executive.

[DATA WHL:Woolworths] reports that its revenue increased by 55.2 per cent to 30.3 billion rand. While basic and headline earnings grew 9.5 per cent and 14.7 per cent respectively.

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Growth in South African clothing sales grew 9.4 per cent, with good sales coming from menswear and womenswear categories.

Sales in the food division also increased with sales up 14.1 per cent and operating profit up by 24.3 per cent. 

With the partnership with David Jones, Woolworths have added their results. David Jones sales are up by 2.0 per cent, in Australian dollar terms. The profit was 107 million Australian dollars, 10.3 per cent higher than the comparable period.

While the acquisition of the Country Road Group is already proving to be a optimistic one with sales up by 9.2 per cent, in Australian dollar terms.

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Looking ahead the company faces tough conditions in South Africa.  

“We believe that economic conditions in South Africa will remain constrained, especially in the lower and middle income segments of the market where consumer debt levels are still recovering.”

“Sales may be further impacted by load shedding. The upper income segment in which we operate continues to show resilience.  We continue to trade ahead of the market and trading for the first six weeks of the new financial year has been positive.”

However, they are positive that sales in both David Jones and the Country Road Group will be pleasing.

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