Woolworths expands food division but clothing remains biggest profit driver
The retailer’s bottom line was boosted by a property sale, but earnings per share excluding that sale declined in the year to June
Woolworths’ clothing division remains its biggest profit centre, despite flat sales and squeezed margins. The retail group reported on Thursday morning that overall revenue for the 52 weeks to June 25 grew 3.7% to R69bn. While its food division contributed 40% of group revenue, its contribution to pretax profit was 36%. Its clothing and general merchandise division, meanwhile, contributed just 21% of revenue but 39% of pretax profit. Australian department store chain David Jones contributed 22% of revenue and 23% of pretax profit, and sister Australian retailer Country Road 16% of revenue and 17% of pretax profit. Woolworths’ bottom line was boosted by R1.76bn profit from the sale of David Jones’s Sydney headquarters, bumping basic earnings per share up by 25% to 566.7c. But diluted headline earnings per share, which exclude profit from the property sale, declined 8% to 417.7c. The final dividend was maintained at R1.80, holding the total dividend for the year flat at R3.13 per shar...
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