segmental analysis
The group has adopted IFRS 8 Operating Segments with effect from 1 July 2009. IFRS 8 requires operating segments to be identified on the basis of internal reporting about components of the group that are regularly reviewed by the chief operating decision-maker (CODM) to allocate resources to the segments and to assess their performance. The CODM has been identified as the executive directors. Management has determined the operating segments based on the internal reports. The group has identified five reportable segments as follows:
- The Clothing and General Merchandise (C&GM) segment supplies clothing, homeware, beauty and other lifestyle products.
- The Foods segment offers a wide variety of food products ranging from ready-cooked meals to fresh produce, bakery, meat and other consumables.
- The Country Road segment operates in Australasia, trading in upmarket fashion apparel for men, women and children.
- The Woolworths Financial Services (WFS) segment offers financial products and services.
- The Treasury segment generates net interest as a result of cash management activities of the group.
The executive directors evaluate the segment performance based on operating profit or loss before tax and exceptional items.
To increase transparency and comparability of revenue, the group has included additional voluntary disclosure of revenue from logistics services.
The new segments are different from the segments previously disclosed as Woolworths Retail has been subdivided into Foods and Clothing and General Merchandise. Woolworths Financial Services remains a segment accounted for on equity basis subsequent to the disposal of the controlling interest on 1 October 2008.
The following is an analysis of the group’s revenue and operating results by reportable segment:
| Restated | |||||||||
| 52 weeks to | 26 weeks to | 26 weeks to | |||||||
| 28 June | 27 December | 28 December | |||||||
| 2009 | 2009 | 2008 | % | ||||||
| Rm | Rm | Rm | change | ||||||
| Revenue | |||||||||
| 21 175.0 | Turnover | 11 549.8 | 10 562.9 | 9.3 | |||||
| 18 936.5 | SA Retail | 10 242.8 | 9 388.9 | 9.1 | |||||
| 7 422.9 | Clothing and General Merchandise | 4 104.1 | 3 742.3 | 9.7 | |||||
| 11 126.1 | Foods | 5 937.4 | 5 449.8 | 8.9 | |||||
| 387.5 | Logistics | 201.3 | 196.8 | 2.3 | |||||
| 2 234.5 | Country Road | 1 307.0 | 1 170.0 | 11.7 | |||||
| 4.0 | Financial Services (to 30 September 2008) | – | 4.0 | (100.0) | |||||
| 747.3 | Other revenue | 146.2 | 584.2 | (75.0) | |||||
| 96.3 | SA Retail | 55.0 | 46.9 | 17.3 | |||||
| 37.8 | Clothing and General Merchandise | 18.9 | 20.2 | (6.4) | |||||
| 58.5 | Foods | 36.1 | 26.7 | 35.2 | |||||
| 17.3 | Country Road | 31.5 | 6.6 | 377.3 | |||||
| 469.7 | Financial Services (to 30 September 2008) | – | 469.7 | (100.0) | |||||
| 184.4 | Treasury | 85.6 | 81.4 | 5.2 | |||||
| (20.4) | Intra-group | (25.9) | (20.4) | 27.0 | |||||
| 21 922.3 | Total group | 11 696.0 | 11 147.1 | 4.9 | |||||
| Gross profit | |||||||||
| 5 310.0 | SA Retail | 3 024.6 | 2 564.6 | 17.9 | |||||
| 2 731.3 | Clothing and General Merchandise | 1 618.1 | 1 325.6 | 22.1 | |||||
| 2 509.8 | Foods | 1 372.8 | 1 204.5 | 14.0 | |||||
| 68.9 | Intra-group | 33.7 | 34.5 | (2.3) | |||||
| 1 359.9 | Country Road | 762.0 | 720.2 | 5.8 | |||||
| 4.0 | Financial Services (to 30 September 2008) | – | 4.0 | (100.0) | |||||
| – | Abnormal foreign exchange profit | 57.7 | – | 100.0 | |||||
| 6 673.9 | Total group | 3 844.3 | 3 288.8 | 16.9 | |||||
| Profit before tax and exceptional item | |||||||||
| 1 185.5 | SA Retail | 769.1 | 640.4 | 20.1 | |||||
| 821.4 | Clothing and General Merchandise | 541.8 | 452.7 | 19.7 | |||||
| 364.1 | Foods | 227.3 | 187.7 | 21.1 | |||||
| 140.5 | Country Road | 90.3 | 93.5 | (3.4) | |||||
| 71.8 | Financial Services (to 30 September 2008) | – | 71.8 | (100.0) | |||||
| 57.4 | Share of earnings from WFS (from 1 October 2008) | 26.8 | 27.4 | (2.2) | |||||
| 49.9 | Treasury | 12.0 | 32.4 | (63.0) | |||||
| (79.0) | Abnormal foreign exchange profit/(loss) | 57.7 | – | 100.0 | |||||
| 1 426.1 | Total group | 955.9 | 865.5 | 10.4 |