• Full year dividend significantly increased, up by almost 250% to 229,5c
• FBH turnaround demonstrated through strong operational and financial performance, with aEBIT
growth of almost 49%
• Australian second half performance outperformed expectations, with David Jones aEBIT up 86% and
Country Road Group aEBIT up 19%.
• Foods business continues to generate highest return on capital employed in the market
• The Group has the highest online contribution to sales within its peer group
• R1.5bn share buyback demonstrating management’s confidence in the business
• Strongest balance sheet since 2014
• Significant reinvestment into the South African business planned, particularly in digital and data, with
further R8bn of capex for next 3 years
Woolworths Holdings Limited (WHL) today announced annual results for the 52 weeks ended 26 June
2022. Commenting on the results, Roy Bagattini, WHL Group CEO said, “I am very pleased with the
Group’s performance. We have delivered the healthiest balance sheet in almost a decade, double-digit
profit growth supported by strong momentum in Australia and signs of the turnaround of FBH, and the returnof excess cash to our shareholders. I firmly believe that we have proven ourselves to be a resilient
or ganisation that is focused on formulating clear strategies and executing against them. We are on track to rebuild our financial credentials, drive long-term value creation, and restore our business to its rightful place in the hearts and minds of all our stakeholders.”
Group turnover increased by 2.6% in constant currency terms, with second half sales up by 5.6%. Online
sales grew by 16.4%, contributing 12.4% to the Group’s total turnover and concession sales over the year.
Turnover in our Fashion Beauty and Home business grew by 5.4%, with full-priced sales growing by 8.8%, supported by improved product resonance and market share gains in our ‘must win’ categories. Trading space declined by 4.5%, supporting a double-digit increase in trading densities. Online sales grew by 13.2% and contributed 4.4% to South African sales. Adjusted operating profit increased by 48.7% to R1 610 million, resulting in an operating margin of 11.9% for the year, compared to 8.4% in the prior year.
Our Food business grew turnover by 4.2%, reflecting the impact of the high Covid base and the return to
out-of-home consumption, an increasingly competitive backdrop, and low product inflation across key
categories. Space grew by 1.8% relative to the prior year. Online sales increased by 45.4%, contributing
3.2% of South African sales, assisted by the further rollout of our on demand online offering. Adjusted
operating profit declined by 3.9% to R2 893 million, returning an operating profit margin of 7.3% for the
year, compared to 7.9% in the prior year. The business remains the highest return on capital Food retailer within the market.
The Woolworths Financial Services (WFS) book reflects a year-on-year increase of 6.8% at 30 June
2022, driven by demand and a recovery in post-Covid spend. The impairment rate for the year ended 30
June 2022 improved to 4.7%, compared to 5.3% in the prior year, reflecting strong collections and continued strength of the book. ROE increased to 18.4%, from 13.6% in the prior year.
David Jones turnover declined by 2.6% for the full year, due to government-imposed lockdowns for the
majority of the first half, but pleasingly grew by 4.3% in the second half, post the easing of lockdown
restrictions. In line with our space optimisation initiatives, trading space reduced by a further 2.6% relative to the prior year. Online sales increased by 28.7% and contributed 22.8% to total sales over the full year. Adjusted operating profit in H2 grew by 85.5% to A$52.5m. For the full year, adjusted operating profit declined by 0.6% on the prior year, to A$83.7 million, returning an operating profit margin of 4.1%, compared to 4.0% in the prior year. This was achieved despite Covid-related government support and rent concessions in the prior year base.
COUNTRY ROAD GROUP
Country Road Group sales grew by 3.1%, notwithstanding a further 8.1% reduction in trading space. This
result was driven primarily by a strong performance from the Country Road, Trenery and Politix brands,
following the successful launch of new ranges and the ongoing focus on brand and product positioning.
Online sales increased by 4.6% and contributed 31.6% to total sales for the year. Adjusted operating profit in H2 grew by 18.6% to A$72.1m. For the full year, adjusted operating profit was 22.3% lower at A$120.3 million, returning an operating profit margin of 11.1% compared to 14.7% in the prior year.
The Board declared a final dividend of 149.0 cents, a 125.8% increase on the prior year’s 66.0 cents. This
brings the total dividend for the year to 229.5 cents, a 247.7% increase on the prior year’s total dividend of 66.0 cents.
Turnover +2.6% to R87.0bn
Adjusted profit before tax +11.0% to R5.1bn |H2 +50%
Adjusted diluted headline earnings per share +9.7% to 374.9cps | H2 +44%
Total dividend per share +247.7% to 229.5cps (2021: 66.0cps)
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