Abstract of the audited group outcomes for the 52 weeks ended 26 June 2022 and money dividend declaration
Woolworths Holdings Restricted
(Integrated within the Republic of South Africa)
Registration quantity 1929/001986/06
LEI: 37890095421E07184E97
Share code: WHL
Share ISIN: ZAE000063863
Bond Firm code: WHLI
(‘the Group’, ‘the Firm’ or ‘WHL’)
SUMMARY OF THE AUDITED GROUP RESULTS FOR THE 52 WEEKS ENDED 26 JUNE 2022 AND CASH DIVIDEND DECLARATION
FINANCIAL OVERVIEW
Turnover +1.7% to R80.1bn
Turnover and concession gross sales +1.four% to R87.0n
Revenue earlier than tax +zero.eight% to R5.2bn
Adjusted revenue earlier than tax +11.zero% to R5.1bn
Earnings per share -11.zero% to 387.4cps
Headline earnings per share +6.5% to 398.9cps
Adjusted diluted headline earnings per share +9.7% to 374.9cps
Web money (excluding lease liabilities) of R229m (2021: internet borrowings of R1.1bn)
Whole dividend per share +247.7% to 229.5cps (2021: 66.0cps)
COMMENTARY ON PERFORMANCE
The Group’s turnover and concession gross sales for the 52 weeks ended 26 June 2022 (‘present yr’, ‘full yr’ or
‘yr’) elevated by 1.four% in comparison with the 52 weeks ended 27 June 2021 (‘prior yr’) and by 2.6% in fixed
foreign money phrases. On-line gross sales grew by 16.four%, contributing 12.four% to the Group’s whole turnover and concession
gross sales over the yr.
However the risky international backdrop, commerce throughout the second half of the yr (‘H2’) confirmed an improved
run price over the primary half of the yr (‘H1’) throughout all our companies, with Group turnover and concession gross sales
rising by four.9%, and by 5.6% in fixed foreign money phrases, respectively, as lockdown restrictions eased and our
deal with commerce and executing towards our strategic priorities gained additional momentum.
As talked about in our interim outcomes launched on the JSE Inventory Trade Information Service (‘SENS’) on 2 March 2022,
commerce throughout H1 was severely impacted by the prolonged lockdowns in Australia, and to a lesser extent by the civil
unrest in South Africa. This, coupled with the absence of JobKeeper allowances in Australia and lease aid, which
supported the prior yr base, the revenue on sale of the Bourke Road Males’s and Elizabeth Road properties, as
effectively as lease exit and modification good points, makes the complete yr buying and selling end result non-comparable to that of the prior
yr.
Earnings per share (‘EPS’) was 387.4cps in comparison with 435.1cps for the prior yr, whereas headline EPS (‘HEPS’) and
adjusted diluted HEPS elevated by 6.5% and 9.7% over the prior yr to 398.9cps and 374.9cps, respectively.
Adjusted diluted HEPS in H2 grew by 43.eight% on the prior yr.
The Group ended the yr with a strong steadiness sheet and a internet money place of R229 million. Strong working
capital administration and a deal with capex prioritisation resulted in money conversion exceeding 100%, producing
Free Money Move of 448.3cps. This supported a share buyback of R1.5 billion over the months of June and July 2022
and a reinstatement of the Woolworths SA and Nation Highway Group dividend at a 70% payout ratio.
Through the yr, the Board of David Jones declared a particular dividend to WHL of A$90 million (roughly R1
billion), with these proceeds utilised to cut back debt in South Africa. On condition that David Jones exceeded its money
forecast for the yr, an extra A$50 million of capital is deliberate to be returned to WHL, publish year-end.
SOUTH AFRICA
WOOLWORTHS FASHION, BEAUTY AND HOME (‘FBH’)
The FBH enterprise grew H2 turnover and concession gross sales by 6.5%, with full-priced gross sales rising by eight.eight%,
supported by improved product resonance, market share good points in our ‘should win’ classes, and a stronger
efficiency from the remainder of Africa. Gross sales for the complete yr grew by 5.four% and by 7.three% in comparable shops, whereas
buying and selling house declined by four.5%, supporting a double-digit improve in buying and selling densities. Value motion averaged
6.zero% over the complete yr and stays positively impacted by lowered markdown. On-line gross sales grew by 13.2% and
contributed four.four% to South African gross sales.
Gross revenue margin elevated by 210bps to 47.6%. Expense development was contained to 1.eight%, supported by a 1.7%
decline in retailer prices, on account of our house discount and value optimisation initiatives. Adjusted working
revenue elevated by 48.7% to R1 610 million, leading to an working margin of 11.9% for the yr, in comparison with
eight.four% within the prior yr.
WOOLWORTHS FOOD
The Woolworths Meals enterprise grew turnover and concession gross sales in H2 by four.6%, with buying and selling momentum
bettering all through the interval, as Covid-19 base results eased. Gross sales for the complete yr grew by four.2%, and by
three.1% in comparable shops, reflecting the affect of the excessive base and the return to out-of-home consumption,
an more and more aggressive backdrop, and low product inflation throughout our key classes. Value motion
averaged three.5% for the complete yr, with underlying product inflation at three.9%, reflecting continued value funding.
Area grew by 1.eight% relative to the prior yr. On-line gross sales elevated by 45.four%, contributing three.2% of South African
gross sales, assisted by the additional rollout of our on demand on-line providing.
Gross revenue margin decreased by 50bps to 24.zero%, resulting from development in on-line gross sales, provide chain prices and a degree of
value funding. Bills grew by 5.7%, primarily reflecting funding in initiatives, together with on-line. Adjusted
working revenue grew by zero.four% in H2, with full yr revenue declining by three.9% to R2 893 million, returning an
working revenue margin of seven.three% for the yr, in comparison with 7.9% within the prior yr.
WOOLWORTHS FINANCIAL SERVICES (‘WFS’)
The Woolworths Monetary Companies guide displays a year-on-year improve of 6.eight% at 30 June 2022, pushed by
demand and a restoration in publish Covid-19 spend. The impairment price for the yr ended 30 June 2022 improved
to four.7%, in comparison with 5.three% within the prior yr, reflecting robust collections and continued power of the guide.
Return on fairness elevated to 18.four%, from 13.6% within the prior yr.
AUSTRALIA AND NEW ZEALAND
As talked about beforehand, commerce in H1 was considerably impacted by government-enforced restrictions throughout the
area which required the closure of shops representing greater than 70% of our brick-and-mortar gross sales for an
prolonged interval. In H2, robust client demand and our deal with commerce resulted in a wholesome rebound in gross sales.
DAVID JONES (‘DJ’)
DJ turnover and concession gross sales declined by 2.6% for the complete yr and by 2.5% in comparable shops, however grew
by four.three% in H2, after the easing of lockdown restrictions. In step with our house optimisation initiatives, buying and selling
house lowered by an extra 2.6% relative to the prior yr. On-line gross sales elevated by 28.7% and contributed 22.eight%
to whole gross sales over the complete yr.
Gross revenue margin was maintained at 35.2%, however the clearance of H1 stock build-up. Bills
declined by three.6%, pushed by the profitable execution of cost-out initiatives and the rationalisation of the DJ meals
providing. Adjusted working revenue in H2 grew by 85.5% to A$52.5 million. For the complete yr, adjusted working
revenue declined by zero.6% on the prior yr to A$83.7 million, returning an working revenue margin of four.1%,
in comparison with four.zero% within the prior yr. This was achieved regardless of Covid-19 associated authorities help and lease
concessions within the prior yr base.
COUNTRY ROAD GROUP (‘CRG’)
CRG gross sales grew by 9.zero% and by 11.three% in comparable shops for H2, leading to constructive full-year gross sales development of
three.1% and four.zero%, respectively, however an extra eight.1% discount in buying and selling house. This end result was pushed
primarily by a powerful efficiency from the Nation Highway, Trenery and Politix manufacturers, following the profitable
launch of recent ranges and the continuing deal with model and product positioning. On-line gross sales elevated by four.6%
and contributed 31.6% to whole gross sales for the yr.
Gross revenue margin declined by 130bps to 59.5%, on account of elevated clearance gross sales following the prolonged
lockdown, coupled with greater freight prices arising from international provide chain constraints. Bills elevated by
eight.2%, on account of the prior yr affect of JobKeeper subsidy and lease rebates. Adjusted working revenue in H2
grew by 18.6% to A$72.1 million. For the complete yr, adjusted working revenue was 22.three% decrease at A$120.2 million,
returning an working revenue margin of 11.1% in comparison with 14.7% within the prior yr.
OUTLOOK
The worldwide macro atmosphere stays risky, with rising inflation and rates of interest posing a headwind to the
outlook for financial development. While this affect on Australian client spend ought to be considerably mitigated
by robust family steadiness sheets and excessive employment, South African consumption faces excessive unemployment
and extreme vitality shortages.
International provide chain uncertainties and elevated freight prices have been exacerbated by latest international occasions,
putting important upward strain on uncooked materials availability and enter pricing. However this backdrop,
the present momentum of our attire companies is predicted to proceed, and our Meals enterprise is predicted to
ship a strong underlying efficiency while investing in key initiatives.
We have now a strong steadiness sheet, and important self-help alternatives throughout our companies to develop each
income and profitability, and are allocating capital accordingly to reinforce the general returns profile of our
Group.
Any reference to future monetary efficiency included on this announcement has not been reviewed or reported
on by the Group’s exterior auditors and doesn't represent an earnings forecast.
H Brody R Bagattini
Chairman Group Chief Government Officer
Cape City
30 August 2022
DIVIDEND DECLARATION
The Board of Administrators of WHL (‘Board’) has taken a choice to declare a ultimate gross money dividend per abnormal
share (‘dividend’), based mostly on a pay-out ratio of 70% of second half headline earnings of the mixed Woolworths
South Africa enterprise segments (FBH, Meals and WFS) in addition to Nation Highway Group.
Discover is hereby on condition that the Board has declared a ultimate dividend of 149.zero cents (119.2 cents internet of dividend
withholding tax) for the 52 weeks ended 26 June 2022, being a 125.eight% improve on the prior yr’s 66.zero cents.
This brings the overall dividend for the yr to 229.5 cents, representing a 247.7% improve on the prior yr’s whole
dividend of 66.zero cents. The dividend has been declared from reserves and subsequently doesn't represent a
distribution of ‘contributed tax capital’ as outlined within the Earnings Tax Act, 58 of 1962. A dividend withholding tax
of 20% might be relevant to all shareholders who aren't exempt.
The issued share capital on the declaration date is 1 zero24 671 335 abnormal shares. The salient dates for the
dividend might be as follows:
Final day of commerce to obtain a dividend Tuesday, 13 September 2022
Shares begin buying and selling ‘ex’ dividend Wednesday, 14 September 2022
File date Friday, 16 September 2022
Fee date Monday, 19 September 2022
Share certificates is probably not dematerialised or rematerialised between Wednesday, 14 September 2022 and
Friday, 16 September 2022, each days inclusive. Bizarre shareholders who maintain dematerialised shares could have
their accounts at their CSDP or dealer credited or up to date on Monday, 19 September 2022. The place relevant,
dividends in respect of certificated shares might be transferred electronically to shareholders’ financial institution accounts on
the fee date. The place the switch secretaries would not have the banking particulars of any certificated
shareholders, the money dividend might be held in belief by the switch secretaries pending receipt of the related
certificated shareholder’s banking particulars after which the money dividend might be paid through digital switch into
the private checking account of the certificated shareholder.
CA Reddiar
Group Firm Secretary
Cape City
30 August 2022
CHANGES TO THE BOARD OF DIRECTORS
As introduced on SENS on 29 August 2022, Mr Robert Collins was appointed as an impartial Non-executive
Director of WHL, with impact from 1 October 2022. Mr Collins spent over 27 years at John Lewis Partnership Plc,
holding varied administration roles, together with managing director of Waitrose till 2020. The Board appears to be like ahead
to welcoming Rob to the Group.
As introduced on SENS on 7 July 2022, Ms Nombulelo (Pinky) Moholi was appointed because the Lead Unbiased
Director of the Board, with impact from 7 July 2022. Ms Moholi has deep information of the WHL Group, and
intensive Board expertise. The Board appears to be like ahead to Ms Moholi’s contribution in her expanded position.
ABOUT THIS ANNOUNCEMENT
Assertion and availability
This brief type announcement, together with the fixed foreign money and professional forma monetary info, is the
accountability of the administrators and is barely a abstract of the knowledge within the full announcement. The
audited Group Annual Monetary Statements had been authorised by the Board on 30 August 2022, and the knowledge
on this announcement has been appropriately extracted from the audited Group Annual Monetary Statements, upon
which KPMG have issued an unqualified report. The auditors’ report doesn't essentially report on all the
info contained on this announcement. Shareholders and bondholders are subsequently suggested that, so as
to acquire a full understanding of the character of the auditors’ engagement, they need to get hold of an digital copy
of the auditors’ report, together with Key audit issues, along with the accompanying Annual Monetary Statements
from the Firm’s registered workplace, or on the Firm’s web site
https://www.woolworthsholdings.co.za/wp-content/uploads/2022/08/whl_annual_financial_statements_2022.pdf
Any funding selections by traders and/or shareholders and/or bondholders ought to be based mostly on
consideration of the complete announcement, which has been printed on SENS and out there at
https://senspdf.jse.co.za/paperwork/2022/JSE/ISSE/WHLE/WHLFY22.pdf and on the Firm’s web site
https://www.woolworthsholdings.co.za/wp-content/uploads/2022/08/whlfy22.pdf
An digital copy of the complete announcement could also be requested and obtained, at no cost, from the Group
Firm Secretary at Governance@woolworths.co.za or the Head of Investor Relations at
InvestorRelations@woolworths.co.za. The Analyst Presentation might be out there on the web site later at the moment at
the hyperlink https://www.woolworthsholdings.co.za/wp-content/uploads/2022/08/Analyst_Presentation.pdf
DIRECTORATE AND STATUTORY INFORMATION
Non-executive Administrators
Hubert Brody (Chairman), Nombulelo Moholi (Lead Unbiased Director), Christopher Colfer (Canadian),
Belinda Earl (British), David Kneale (British), Phumzile Langeni, Thembisa Skweyiya, Clive Thomson
Government Administrators
Roy Bagattini (Group Chief Government Officer), Reeza Isaacs (Group Finance Director),
Sam Ngumeni (Group Chief Working Officer)
Group Firm Secretary
Chantel Reddiar
Debt officer
Ian Thompson
Registration quantity
1929/001986/06
LEI
37890095421E07184E97
Share code
WHL
Share ISIN
ZAE000063863
Bond Firm code
WHLI
Registered deal with
Woolworths Home
93 Longmarket Road
Cape City, 8001, South Africa
Postal deal with
PO Field 680
Cape City 8000, South Africa
Tax quantity
9300/149/71/four
JSE sponsor and debt sponsor
Rand Service provider Financial institution (A division of FirstRand Financial institution Restricted)
Switch secretaries
Computershare Investor Companies Proprietary Restricted
15 Biermann Avenue, Rosebank, 2196, South Africa
31 August 2022
Date: 31-08-2022 07:05:00
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