Woolworths profit to fall 20%
Nov 19 2009 18:37
Johannesburg - South African clothing and food retailer Woolworths expects a 20% fall in first-half earnings per share and said economic conditions were expected to be tough for the remainder of the 2010 financial year.
The company said its results for the six months to end-December would be affected by profit earned on the disposal of a 50% plus one share of Woolworths Financial Services to Absa Group last year.
The group said its financial services loan book grew 3.9% year-on-year at the end of October, while the rate of bad debts for the four months to end-October was at 8.2%.
Sales for the 20 weeks ended November 15 rose 8.1% while comparable store sales increased by 3.8%, the company said.
Shares in the retailer closed down 2% at R17.12.
South African retailers have been struggling as consumers in
Africa's biggest economy rein in spending with upmarket food retailers like Woolworths being the hardest hit.
- Reuters
