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Profit surge for Woolworths

Aug 26 2010 08:32 Reuters

Company Data

Woolies [JSE : WHL]

Last traded R41.75
Change R0.05
% Change 0.12%
Cumulative volume 600,247
Market cap R34.88bn

Last Updated: 13/02/2012 at 13:50. Prices are delayed by 15 minutes. Source: McGregor BFA

 

Shoprit [JSE : SHP]

Last traded R130.94
Change R0.69
% Change 0.53%
Cumulative volume 308,922
Market cap R71.16bn

Last Updated: 13/02/2012 at 13:52. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Johannesburg - Retailer Woolworths Holdings [JSE:WHL] posted a 25% rise in full-year profit, helped by a recovering demand in Africa's biggest economy and said it expects a slow recovery ahead.

Woolworths, which sells upscale food and clothing, said on Thursday headline earnings per share rose to 157.2 cents in the year to end-June from 126 cents a year last year.

Headline EPS is the main profit gauge in South Africa and strips out certain one-off items.

Woolworths, which also operates in Australia, said it expects a slow improvement in both South Africa and Australia.

The Cape Town-based company said revenue for the year rose BY 8.2% to R23.7bn.

Shares in Woolworths have gained more than 30% so far this year, outpacing a more than 2% decline in the JSE all-share index.

Investors have been snapping up Woolworths and other South African retailers on hopes that decades-low interest rates, soccer World Cup and a tentative economic growth would ease strain on consumers.

But these benefits are tempered by high household debt levels and job losses.

South Africa's retail sales rose for a sixth consecutive month in June, helped by World Cup spending, but the increase was weaker than expected.

Woolworths' larger rival Shoprite Holdings [JSE:SHP], which this week posted a 16 percent rise in full-year profit, gave a cautious 2011 outlook, citing job losses and debt levels.
 

 
 
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