Woolworths full year turnover up 7.2%

27 Aug 2009

Retailer Woolworths reported on Wednesday, 26 August 2009, that its adjusted diluted headline earnings per share for the full year ended 30 June had lifted to 123.7 cents from 114.3 cents before.

The total distribution per ordinary share for the year amounts to 179.0 cents, which includes the special dividend, from a 79 cent ordinary distribution before.

The directors have also resolved to make a cash distribution of 53.5 cents per ordinary share in lieu of the final dividend for the year ended June 30 2009 out of the company's share premium account.

"We are conscious that the economic conditions will remain tough throughout the year. We believe that we have a better-positioned merchandise offer, without any compromise to our quality. We will remain focused on managing costs and controlling our stock throughout this period. The improvement in sales experienced in the fourth quarter has continued into the first eight weeks of this year," the company said.

The company reported turnover up 7.2% to R21.175 billion when based on a comparable 52-week period. Store costs amounted to R3.482 billion this time from 3.118 billion before, while net bad debts and bad debts provisions dipped to R134.2 million from 584.3 million before.

Operating costs were at R2.167 billion from R2.253 billion, with operating profit at R1.638 billion from R1.999 billion a year earlier.

On October 1 2008, Woolworths Financial Services (Proprietary) Limited issued shares to Absa Bank Limited to the value of R875 million, resulting in the dilution of the group's shareholding to 50% less one share and a net profit on disposal of controlling interest of R380 million.

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