Revenue for the twenty six weeks to December 2006 increased by 21.0% to R8.97bn. Operating profit grew by 31.1% to R957.6m. Good revenue growth together with operating efficiences brought about an improvement in operating margins from 9.8% to 10.7%.
Higher borrowings utilised to fund the growth of our financial services books and the increase in interest rates resulted in finance costs increasing by 51.1% to R171.9m.
Diluted headline earnings per share increased by 22.9% (28.5% prior to the non-comparable STC payment) from 51.9 cents to 63.8 cents per share. The pre-tax profit of R54.6m on the disposal of land in Midrand contributed to the higher increase in earnings per share of 32.3%.
Interim dividend
An interim dividend of 29.5 cents per share has been declared representing an
increase of 22.9%.
Trading environment
Spending continued to grow driven by ongoing structural shifts in the consumer base and the higher level of credit usage. Good trading was experienced over the Christmas period.
operating review
Woolworths
Retail
Our retail business traded well and achieved good like-for-like sales growth.
Clothing and home sales increased by 14.4% (2005: 12.6%), with a 9.8% (2005: 8.2%) increase in comparable stores. Inflation averaged approximately 1.6%. An improved offer in menswear and excellent value in childrenswear delivered particulary good results.
Food continued to perform well and sales grew by 25.9% (2005: 20.9%) in total and 15.1% (2005: 12.2%) in comparable stores. Inflation averaged approximately 7.4%. The high growth rate was driven by the roll-out of convenience stores, our continued quality and innovation and customers increasingly using us for their main food shop.
Trading space
Clothing and home trading space increased 4.2%.The accelerated roll-out of food convenience stores resulted in a 13.1% increase in food trading space from December 2005.
Financial services
Good growth of 24.5% was experienced in our store card, credit card and personal loan books.
The net bad debt experience on the combined books was well within
expectations, increasing from 4.0% to 4.1% of advances.
The fixing of the usury rate on unsecured credit continues to negatively impact the margin in our financial services
business.
Country Road
Country Road contributed a profit after tax of A$5.2m compared to A$2.3m in the prior year. Retail sales increased by 13.7% in Australian dollar terms and total sales by 3.5%. Wholesale sales decreased as we convert this part of the business into a concession model in the two major departmental store chains.
Prospects
Higher interest rates and a tighter credit environment will progressively subdue growth in the second half. Nevertheless we expect to deliver ongoing good growth in diluted headline earnings per share for the full year.
Empowerment
Woolworths continues to be committed to black economic empowerment (BEE) and transformation. As part of our BEE strategy the board has approved a broad-based share scheme for staff, the majority of whom are black. This scheme will be presented for shareholder approval at a general meeting to be convened for May 2007.
Changes to the board of directors
On 1 December 2006 Andrew Jennings was appointed to the board.
DA Hawton Chairman
Cape Town, 23 August 2006
SN Susman Chief executive officer
dividend payment
Notice is hereby given that the directors have declared an interim dividend of 29.5 cents per share for the six months ended December 2006.
The salient dates for the dividend will be as follows:
Last day to trade to receive dividend
Friday, 2 March 2007
Shares commence trading "ex" dividend
Monday, 5 March 2007
Record date
Friday, 9 March 2007
Payment date
Monday, 12 March 2007
Share certificates may not be dematerialised or rematerialised between Monday, 5 March 2007 and Friday, 9 March 2007, both days inclusive.
In accordance with the company’s articles of association, dividends amounting to less than R5.00 due to any one holder of the company’s shares held in certificated form will not be paid, unless otherwise requested in writing, but will be aggregated with other such amounts and be donated to a charity nominated by the directors.
CL Lowe Group secretary
Cape Town, 14 February 2007
directorate and statutory information
Non-executive directors: Buddy Hawton (Chairman), Peter Bacon, Mair Barnes (British), Nigel Colne (British),
Brian Frost, Mike Leeming, Chris Nissen, Sindi Zilwa Executive directors: Simon Susman (CEO), Richard Inskip,Andrew Jennings
(British), Zyda Rylands, Norman Thomson Group secretary: Cherrie Lowe Share code: WHL
ISIN: ZAE000063863 Registered address (postal and physical): PO Box 680, Cape Town 8000
• Woolworths House, 93 Longmarket Street, Cape Town 8001 Registration number: 1929/001986/06
Auditors: Ernst & Young and SAB & T Inc Bankers: Standard Bank of South Africa Limited
Sponsor: Rand Merchant Bank (A division of FirstRand Bank Limited) Transfer secretaries: Computershare Investor Services 2004 (Pty) Ltd, 70 Marshall Street, Johannesburg 2001
![Woolworths Holdings Limited [logo]](i/whl_logo.gif){kind=logo}
sheet
statement
statement
of changes
analysis
commentary
Group results
Revenue for the twenty six weeks to December 2006 increased by 21.0% to R8.97bn. Operating profit grew by 31.1% to R957.6m. Good revenue growth together with operating efficiences brought about an improvement in operating margins from 9.8% to 10.7%.
Higher borrowings utilised to fund the growth of our financial services books and the increase in interest rates resulted in finance costs increasing by 51.1% to R171.9m.
Diluted headline earnings per share increased by 22.9% (28.5% prior to the non-comparable STC payment) from 51.9 cents to 63.8 cents per share. The pre-tax profit of R54.6m on the disposal of land in Midrand contributed to the higher increase in earnings per share of 32.3%.
Interim dividend
An interim dividend of 29.5 cents per share has been declared representing an increase of 22.9%.
Trading environment
Spending continued to grow driven by ongoing structural shifts in the consumer base and the higher level of credit usage. Good trading was experienced over the Christmas period.
operating review
Woolworths
Retail
Our retail business traded well and achieved good like-for-like sales growth.
Clothing and home sales increased by 14.4% (2005: 12.6%), with a 9.8% (2005: 8.2%) increase in comparable stores. Inflation averaged approximately 1.6%. An improved offer in menswear and excellent value in childrenswear delivered particulary good results.
Food continued to perform well and sales grew by 25.9% (2005: 20.9%) in total and 15.1% (2005: 12.2%) in comparable stores. Inflation averaged approximately 7.4%. The high growth rate was driven by the roll-out of convenience stores, our continued quality and innovation and customers increasingly using us for their main food shop.
Trading space
Clothing and home trading space increased 4.2%.The accelerated roll-out of food convenience stores resulted in a 13.1% increase in food trading space from December 2005.
Financial services
Good growth of 24.5% was experienced in our store card, credit card and personal loan books.
The net bad debt experience on the combined books was well within expectations, increasing from 4.0% to 4.1% of advances.
The fixing of the usury rate on unsecured credit continues to negatively impact the margin in our financial services business.
Country Road
Country Road contributed a profit after tax of A$5.2m compared to A$2.3m in the prior year. Retail sales increased by 13.7% in Australian dollar terms and total sales by 3.5%. Wholesale sales decreased as we convert this part of the business into a concession model in the two major departmental store chains.
Prospects
Higher interest rates and a tighter credit environment will progressively subdue growth in the second half. Nevertheless we expect to deliver ongoing good growth in diluted headline earnings per share for the full year.
Empowerment
Woolworths continues to be committed to black economic empowerment (BEE) and transformation. As part of our BEE strategy the board has approved a broad-based share scheme for staff, the majority of whom are black. This scheme will be presented for shareholder approval at a general meeting to be convened for May 2007.
Changes to the board of directors
On 1 December 2006 Andrew Jennings was appointed to the board.
Chairman
Cape Town, 23 August 2006
Chief executive officer
dividend payment
Notice is hereby given that the directors have declared an interim dividend of 29.5 cents per share for the six months ended December 2006.
The salient dates for the dividend will be as follows:
Share certificates may not be dematerialised or rematerialised between Monday, 5 March 2007 and Friday, 9 March 2007, both days inclusive.
In accordance with the company’s articles of association, dividends amounting to less than R5.00 due to any one holder of the company’s shares held in certificated form will not be paid, unless otherwise requested in writing, but will be aggregated with other such amounts and be donated to a charity nominated by the directors.
Group secretary
directorate and statutory information
Non-executive directors: Buddy Hawton (Chairman), Peter Bacon, Mair Barnes (British), Nigel Colne (British),
Brian Frost, Mike Leeming, Chris Nissen, Sindi Zilwa
Executive directors: Simon Susman (CEO), Richard Inskip,Andrew Jennings (British), Zyda Rylands, Norman Thomson
Group secretary: Cherrie Lowe Share code: WHL ISIN: ZAE000063863
Registered address (postal and physical): PO Box 680, Cape Town 8000
• Woolworths House, 93 Longmarket Street, Cape Town 8001
Registration number: 1929/001986/06
Auditors: Ernst & Young and SAB & T Inc
Bankers: Standard Bank of South Africa Limited
Sponsor: Rand Merchant Bank (A division of FirstRand Bank Limited)
Transfer secretaries: Computershare Investor Services 2004 (Pty) Ltd, 70 Marshall Street, Johannesburg 2001