Woolworths profit jumps on Aus acquisition

Johannesburg - High-end retailer Woolworths Holdings [JSE:WHL] posted a 29% jump in half-year profit on Thursday, boosted by the acquisition of Australian department store chain David Jones.

Woolworths said adjusted headline earnings per share totalled 244 cents in the six months ended December compared with 188.5c a year earlier.

Sales increased 55% to R30.3bn thanks to a contribution from David Jones, whose acquisition was closed in August last year.

Stripping out the impact of David Jones, sales would have increased by 12.5%.

Retailers in South Africa are struggling to grow sales at a faster pace as consumers rein in spending due to high personal debt, unemployment and rising fuel and transport prices.

But Woolworths is faring better as most of its customers are from the high-income category.