Turnover and concession sales +9.7% to R85.9bn
Profit before tax +267.3% to R5.2bn
Adjusted profit before tax +110.7% to R4.6bn
Earnings per share +647.6% to 435.1cps
Headline earnings per share +212.5% to 374.4cps
Adjusted diluted headline earnings per share +102.9% to 341.6cps
Net borrowings (excluding lease liabilities) 91.0% reduction to R1.1bn
Dividend resumed at 66.0cps in respect of second half earnings

Woolworths Holdings Limited (WHL) today announced its full-year results for the 52 weeks ended 27 June 2021. The retailer delivered a strong performance despite a challenging trading environment characterised by the impact of Covid-19, sluggish economic growth and weak consumer confidence. For the full year, group sales increased by 9.7% to R85.9bn, adjusted profit before tax was up 110.7% to R4.6bn and headline earnings per share (HEPS) increased by 212.5% to 374.4cps.

Roy Bagattini, WHL Group CEO said, “The past year has certainly tested our resolve as an organisation. The results we are sharing are testament to the passion and commitment of our people, who have shown up for our customers to deliver the exceptional products and service for which we’re known. Our deliberate and focused efforts to drive trade, manage inventory, contain costs and reduce debt have resulted in a strong set of results, with earnings up over 100%, a significantly healthier balance sheet, and the resumption of dividends. We have ended the year in a far stronger position, and are on track to drive profitable growth and long-term value creation, and restore our business to its rightful place in the hearts and minds of all our stakeholders.”

The Food business delivered strong sales and gross margin performance in a tough environment, driven by the investment in key product categories to improve our value proposition, while remaining focused on product quality, innovation and convenience. The Woolworths Food business grew both market share and volumes during the period despite the high base set in the prior year as a result of stockpiling ahead of the first lockdown.
Turnover and concession sales for the current year grew by 6.9% and by 5.7% in comparable stores.
Net space increased by 0.6%. Sales in the second half of the current year grew by 3.2%, and by
16.9% over a two-year period, reflective of the investment in innovation and our robust business
model. Online sales grew by 117.9%, contributing 2.3% to our South African Food sales. This was
further supported by the expanded Click-and-Collect offering and the rollout of our on-demand
delivery service, Woolies Dash.

The sales performance of the Fashion, Beauty and Home (FBH) business continues to be impacted
by several factors, including the constrained environment, the decline in demand for formalwear, as
well as our initiatives to streamline our private label offerings and rationalise unproductive space.
Total revenue for the current year increased by 3.5% and by 4.2% in comparable stores, while sales
in the second half of the current year grew by 24.1% on the prior year’s non-comparable base. Online
sales grew by 114.4%, contributing 4.1% to South African sales. The reduction in net space of 6.4%
has translated into improved trading densities.

The Woolworths Financial Services book reflected a year-on-year increase of 0.7% at the end of
June 2021 (2.0% at 30 June 2020). The impairment rate for the 12 months ended 30 June 2021 was
5.3%, compared to 7.9% for the 12 months ended 30 June 2020, reflecting the underlying strength of
the book, as well as focus on customer relief and collection.

David Jones’ turnover and concession sales increased by 2.3% and by 0.9% in comparable stores,
with second half sales up by 17.1%. Online sales increased by 24.4% and contributed 17.3% to total
sales for the current year. In line with our stated intention of exiting unproductive space, trading space
was further reduced by 6.3%. Sales in our Elizabeth Street flagship store grew by 16.6% during the
current year, notwithstanding the lower footfall in the Sydney CBD.

Key transformations and refreshed product offerings across the Country Road brand contributed to a
total sales growth in Country Road Group of 13.5% and 15.3% in comparable stores, with second half
sales up by 39.5%.Online sales grew by 30.7% and contributed 29.7% to total sales, while trading
space was reduced by 2.8% for the current year.

The Board has declared a final dividend 66.0 cents, a 25.8% decrease on the prior year’s 89.0 cents
per share.