SA’s Woolworths profit up

JOHANNESBURG – South African food and clothing retailer Woolworths unveiled a 17,4 per cent rise in annual headline earnings per share but warned that interest rate hikes would curb profit growth this year.

Sales jumped 16,6 per cent to 15,1 billion rand for the year to the end of June, driven mostly by food sales and store expansion. Woolworths, SA’s version of Britain’s Marks & Spencer, plans to capitalise on the country’s burgeoning black middle class by opening new stores in townships and is launching a beauty product line to boost its non-food business.But after record low interest rates, a strong rand and tax cuts fuelled a two-year consumer spending boom, two interest rate hikes since June will temper profit growth in the year ahead, Woolworths said yesterday, which will push the stock lower in line with other retailers.Headline EPS rose to 105 cents in the year to end-June from 89,4 cents in the previous year.Nampa-ReutersWoolworths, SA’s version of Britain’s Marks & Spencer, plans to capitalise on the country’s burgeoning black middle class by opening new stores in townships and is launching a beauty product line to boost its non-food business.But after record low interest rates, a strong rand and tax cuts fuelled a two-year consumer spending boom, two interest rate hikes since June will temper profit growth in the year ahead, Woolworths said yesterday, which will push the stock lower in line with other retailers.Headline EPS rose to 105 cents in the year to end-June from 89,4 cents in the previous year.Nampa-Reuters