Guiding consumers since 2009

Woolworths boasts strong financial results

By Jessica Anne Wood

Woolworths Holdings Limited (WHL) was the second company to release its financial results for the year ended June 2016 this week. Earlier Shoprite Holdings Limited also released positive financial results for the past financial year.

Group sales for WHL increased by 16.4% to R72.1 billion despite challenging conditions in both South Africa and Australasia where the group has operations. In a statement released by WHL it noted that the Board has declared a final dividend of 180 cents per share, which provides a total dividend for the year of 313 cents per share, and increase of 26.7% from the previous financial year.

Ian Moir, WHL Group CEO said: “Our Group has performed well against difficult global and local economic conditions and an increasingly tough retail trading environment. This year’s performance demonstrates the continued benefits of our strategy to be the leading retailer in the Southern hemisphere. The transformation of David Jones continues to deliver and we are benefitting from the increased size and scale of the Group.”

The growth

According to WHL, Woolworths’ clothing and general merchandise sales grew by 8.2% and 4.4% respectively. Woolworths Food continued to gain market share, with its focus on quality, freshness and innovation.

WHL pointed out: “The Foods business has delivered growth ahead of the market every month since September 2011. With food inflation putting pressure on our customers and the recent drought in Southern Africa impacting supply and price of raw materials, we continued to invest in price and breadth so as to offer a complete shop at competitive prices.”

Furthermore, Woolworths Financial Services grew its debtor’s book by 8.1%. This is despite the impact of the new credit regulations under the NCCA. “The Financial Services offer was repositioned within the WRewards programme to deliver a simpler, richer programme and incentivise customers to use their WFS cards as tender. This has yielded encouraging results in a credit environment that remains under pressure. The book’s impairment rate was up slightly to 5.7%,” explained WHL.

Other brands with WHL, such as Country Road Group and David Jones also experience growth in both the South African and international market. Overall WHL has had a good financial year for the period of June 2015 to June 2016.

Recent Articles

Featured How to earn passive income through dividends on your investments

If you invest your money wisely, you will be able to watch it grow beyond inflation. This is a far better option than simply leaving your money in a general savings account. However, did you know that you could also receive interest or dividend payments on your investments?

This is why you should ask your medical scheme for an annual claims statement

Even with a strict budget, a lot can happen in a year and you may lose track of your medical expenses, especially the costs that you cover out-of-pocket. It’s important to regularly assess your medical aid or hospital plan contribution.

Make rewards programmes work for you

Many retailers and financial service providers have introduced rewards programmes, or loyalty programmes, to retain their customers and make them feel appreciated. These programmes can help you save money, but you have to know how to make them work for you.

 

Top 5 things to consider before taking on further credit

Nowadays, the process of attaining credit has become easier and faster. Although applying for, and receiving cash on the same day may excite potential lenders, it doesn’t come without serious repercussions if you’re not wise. 

Deals

Get 25% off your stay at Monte Vista Boutique Hotel

Price: Available on request
When: Until 31 January 2021
Where: Montagu

Luxury Spa Package Special for R449 at Aurora

Price: R449
When: Until 31 January 2021
Where: Cape Town

Oyster and Champagne Special at Blowfish Restaurant | JustMoney

Price: R129
When: Daily
Where: Cape Town


Latest Guide

Guide to debt rehabilitation solutions