Woolies interim results December 2018
Revenue for the interim period increased 2.4% to R37.016 billion (2017: R36.147 billion), gross profit lowered 1.1% to R14.227 billion (2017: R14.383 billion), operating profit dropped 5% to R2.976 billion (2017: R3.133 billion), profit attributable to shareholders of the parent turned around to R1.892 billion (2017: loss of R4.861 billion), while headline earnings per share weakened by 2.9% to 200.4 cents per share (2017: 206.3 cents per share).
The Board of Directors has declared an interim gross cash dividend per ordinary share of 92 cents per share (73.6 cents net of dividend withholding tax) for the 26 weeks ended 23 December 2018, a 15.2% decrease on the prior period's 108.5 cents per share.
Trading conditions are unlikely to improve in the short-term in either South Africa, where the consumer remains under considerable pressure from a weak economy, and in Australia, where consumer sentiment remains constrained.
However, we believe that structural changes made within our FBH business in South Africa, and the completion of the transformational projects within David Jones, with the exception of the Elizabeth Street store refurbishment, will enable both businesses to recover from recent underperformance and ensure longer-term growth and profitability. We expect the current momentum in Woolworths Food and Country Road Group to continue.