S.Africa’s Woolworths warns annual profits could fall by 70%

PUBLISHED: Fri, 14 Aug 2020 11:55:54 GMT

JOHANNESBURG (Reuters) – South African retailer Woolworths said on Friday its profits for the 52-weeks to June 28 could plunge by as much as 70% due to the impact of the coronavirus crisis, high tax rate, and adoption of IFRS 16 accounting standards.

Woolworths said its headline earnings per share (HEPS) – the main profit measure in South Africa- would fall by between 60% and 70% compared to the 342.9 cents it reported a year earlier.

The owner of David Jones in Australia also impaired the carrying value of certain store assets, which will only negatively impact earnings per share and not HEPS.

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