Woolworths boosts profit

JOHANNESBURG – South African food and clothing retailer Woolworths lifted first-half diluted headline earnings per share by 23 per cent due to the growing black middle class, booming credit demand and new food stores.

Woolworths said in a statement yesterday diluted headline earnings per share, which excludes certain non-trading, capital and extraordinary items, rose to 63,8 rand cents in the 26 weeks to end December from 51,9 cents in the year-ago period. The company, South Africa’s equivalent of Britain’s Marks and Spencer, also said it had approved a deal to give its black staff a stake in the company as part of South Africa’s drive to shift more of the economy into the hands of the black majority.Woolworths will unveil details of the black economic empowerment plan for shareholder approval at a general meeting in May.The impact of four interest rate hikes last year and a tighter credit environment would probably curb growth in the second half but the company said it still expects “good growth” in diluted headline EPS for the full year.The company boosted revenue by 21 per cent to 8,97 billion rand, helped by buoyant business over Christmas and the launch of new convenience stores.Woolworths declared an interim dividend of 29,5 cents per share, up 22,9 per cent versus the year-ago period.Nampa-ReutersThe company, South Africa’s equivalent of Britain’s Marks and Spencer, also said it had approved a deal to give its black staff a stake in the company as part of South Africa’s drive to shift more of the economy into the hands of the black majority.Woolworths will unveil details of the black economic empowerment plan for shareholder approval at a general meeting in May.The impact of four interest rate hikes last year and a tighter credit environment would probably curb growth in the second half but the company said it still expects “good growth” in diluted headline EPS for the full year.The company boosted revenue by 21 per cent to 8,97 billion rand, helped by buoyant business over Christmas and the launch of new convenience stores.Woolworths declared an interim dividend of 29,5 cents per share, up 22,9 per cent versus the year-ago period.Nampa-Reuters