26 Aug - 11 min read

Summary of the audited group results for the 52 weeks ended 27 June 2021, cash dividend declaration

Summary of the audited group results for the 52 weeks ended 27 June 2021, cash dividend declaration

Woolworths Holdings Limited 
(Incorporated in the Republic of South Africa) 
Registration number 1929/001986/06 
LEI: 37890095421E07184E97 
Share code: WHL 
Share ISIN: ZAE000063863 
Bond Company code: WHLI 
('the Group', 'the Company' or 'WHL') 
 

SUMMARY OF THE AUDITED GROUP RESULTS FOR THE 52 WEEKS ENDED 27 JUNE 2021, CASH DIVIDEND DECLARATION, 
CHANGES TO THE BOARD OF DIRECTORS AND AMENDMENT OF POLICIES 
 

FINANCIAL OVERVIEW 
Turnover                                                              +9.1% to R78.8bn 
Turnover and concession sales                                         +9.7% to R85.9bn 
Profit before tax                                                     +267.3% to R5.2bn 
Adjusted profit before tax                                            +110.7% to R4.6bn 
Earnings per share                                                    +647.6% to 435.1cps 
Headline earnings per share                                           +212.5% to 374.4cps 
Adjusted diluted headline earnings per share                          +102.9% to 341.6cps 
Net borrowings (excluding lease liabilities)                          91.0% reduction to R1.1bn 
Dividend resumed at 66.0 cps in respect of second half earnings  
 
COMMENTARY ON PERFORMANCE 
The Group is pleased to report a strong operational and financial performance, notwithstanding the ongoing 
impacts of Covid-19 over the year. Management actions to stimulate trade, manage margins, contain costs and 
pay down debt have resulted in a pleasing set of results and a stronger balance sheet. 
 
Group turnover and concession sales for the 52 weeks ended 27 June 2021 ('current year' or the 'period') 
increased by 9.7% compared to the 52 weeks ended 28 June 2020 ('prior year' or 'comparable period') and by 
5.9% in constant currency terms. 
 
Trading conditions over the financial year are not directly comparable to the prior year, given the extensive 
impact of the pandemic. 
 
Trade across the Group continued to improve, notwithstanding uncertainty and business disruption exacerbated 
by the delay of the Covid-19 vaccine rollout, further outbreaks and related lockdowns across both South Africa 
and Australia. The improved trade performance coupled with strong working capital management and the 
proceeds arising from the property sales in Australia resulted in positive cash flows and a significant 
reduction in net debt across the Group. 
 
Furthermore, the following factors contributed to the Group results and financial position: 

  -  The sale of the Bourke Street Mens and Elizabeth Street properties in David Jones were completed in the 
     current year, resulting in net proceeds of A$120.0 million and A$504.4 million which were used to repay debt 
     and generated profits on sale of A$23.8 million and A$19.0 million, respectively; 
  -  Covid-19 necessitated an assessment of the carrying values of assets, resulting in impairment charges of 
     R364 million (pre-tax); and 
  -  The renegotiation of various leases, mainly in David Jones, resulted in lease exit and modification gains under 
     IFRS 16 of R591 million (pre-tax). 

Earnings per share ('EPS') was 435.1 cps compared to 58.2 cps for the prior year, while Headline EPS ('HEPS') and 
adjusted diluted HEPS increased by 212.5% and 102.9% over the prior period to 374.4 cps and 341.6 cps, respectively. 
 
SOUTH AFRICA 
South Africa's recovery from the Covid-19 pandemic has been set back by the onset of the third wave towards 
the end of the fourth quarter. The consequential level 4 restrictions further dampened already-weak consumer 
confidence, which is expected to limit discretionary spend. Furthermore, the recent civil unrest and related 
widespread destruction of property in KwaZulu Natal and parts of Gauteng will also impact economic conditions 
and consumer sentiment. We are pleased to announce that we have reopened two stores to date, with a further 
eight expected to be opened within the next four weeks. Our Maxmead Distribution Centre has also resumed 
full operations and we are continuing to work with our insurance assessors regarding our claims. 
 
WOOLWORTHS FOOD 
Turnover and concession sales for the current year grew by 6.9%, and by 5.7% in comparable stores. The 
Woolworths Food business grew both market share and volumes during the period despite the high base set in 
the prior year driven by stockpiling ahead of the first lockdown. Price movement was 5.2% with underlying 
product inflation of 4.9% while net space increased by 0.6%. Sales in the second half of the current year 
grew by 3.2%, and by 16.9% over a two-year period. 
 
We continue to invest in price in key product categories to improve our value proposition, while remaining 
focused on product quality, innovation and convenience. Online sales grew by 117.9% over the current year, 
contributing 2.3% to our South African Food sales. This was further supported by the expanded Click-and-Collect 
offering and the rollout of our on-demand delivery service, Woolies Dash. 
 
Gross profit margin of 24.5% was 0.4% lower than the prior year as a result of further price investment and the 
growing online contribution which were partly offset by volume rebates and distribution cost efficiencies. 
Expenses, including additional Covid-19 related costs, grew by 6.1%. Adjusted operating profit increased by 3.9% 
to R3 009 million, returning a post IFRS 16 operating margin of 8.0% for the current year. 
 
WOOLWORTHS FASHION, BEAUTY AND HOME ('FBH') 
Total revenue for the current year increased by 3.5% and by 4.2% in comparable stores, while sales in the second 
half of the current year grew by 24.1% on the prior year's non-comparable base. The sales performance of the 
Woolworths FBH business continues to be impacted by several factors, including the constrained environment, 
the decline in demand for formalwear, as well as our initiatives to streamline our private label offerings and 
rationalise unproductive space. 
 
Price movement in FBH was 7.5%, and 5.3% in Fashion, due to the higher promotional activity in the prior year. 
Online sales grew by 114.4%, contributing 4.1% to South African sales. The reduction in net space of 6.4% has 
translated into improved trading densities. 
 
Gross profit margin increased by 1.5% to 45.5%, as a result of a higher level of clearance in the base. Expenses 
grew by 5.4%, with additional Covid-19 related costs, as well as UIF TERS and rent relief in the base. Adjusted 
operating profit increased by 14.2% to R1 083 million, resulting in a post IFRS 16 operating margin of 8.4% for 
the current year. 
 
WOOLWORTHS FINANCIAL SERVICES ('WFS') 
The Woolworths Financial Services book reflected a year-on-year increase of 0.7% at the end of June 2021 (2.0% 
at 30 June 2020). The impairment rate for the 12 months ended 30 June 2021 was 5.3%, compared to 7.9% for 
the 12 months ended 30 June 2020, reflecting the underlying strength of the book, as well as focus on customer 
relief and collection. Net profit after tax for the year increased by 16.8% to R118 million. 

AUSTRALIA AND NEW ZEALAND 
In Australia, stronger economic fundamentals, improved consumer confidence and restrictions on international 
travel, supported inward-focused consumption and buoyed retail spend. This was despite the intermittent snap 
lockdowns across major cities and an extended three-month lockdown in the State of Victoria during the first 
half of the current year and a further lockdown in the last quarter. Footfall in central business districts 
and airport locations remains well below pre Covid-19 levels. 
 
DAVID JONES ('DJ') 
DJ turnover and concession sales over the period increased by 2.3% and by 0.9% in comparable stores, with 
second half sales up by 17.1%. Online sales increased by 24.4% and contributed 17.3% to total sales for the 
current year. In line with our stated intention of exiting unproductive space, trading space was further reduced 
by 6.3%. Sales in our Elizabeth Street flagship store grew by 16.6% during the current year, notwithstanding the 
lower footfall in the Sydney CBD. 
 
Gross profit margin was 2.2% higher than the prior year, at 35.2%, due to reduced markdowns and an improved 
inventory position. Expenses increased marginally by 0.3% on the prior year, with government support and rent 
relief in line with the prior year, and additional costs from the leaseback of the Elizabeth Street and Bourke 
Street Mens stores. Space reduction and other cost reduction initiatives contributed to lower costs. Adjusted 
operating profit of A$84 million was 282% up on the prior year, resulting in a post IFRS 16 operating margin 
of 4.0%. 
 
COUNTRY ROAD GROUP ('CRG') 
CRG delivered strong sales growth of 13.5% over the current year and by 15.3% in comparable stores, with 
second half sales up by 39.5%. This result was underpinned by the robust performance of the Country Road brand 
and through refreshed product offerings across all brands. Online sales increased by 30.7% and contributed 
29.7% to total sales, while trading space was reduced by 2.8% for the current year. 
 
Gross profit margin increased by 2.2% to 60.8% due to increased full-price sales. Expenses for the current year 
reduced by 0.4%, mainly from store closures and a reduction in discretionary spend, as well as higher levels of 
government support and rent relief in the current year compared to the prior year. Adjusted operating profit 
increased by 158.3% to A$155 million, resulting in a post IFRS 16 operating margin of 14.7%. 
 
OUTLOOK 
The trading outlook in both regions is uncertain and will be impacted by further Covid-19 waves and resulting 
lockdowns and restrictions, as well as the slow pace of vaccination in both regions.  In Australia, current 
lockdowns are significantly curtailing trade in our brick-and-mortar stores, while in South Africa, we are in the 
midst of the third wave while the after-effects of recent civil unrest are also likely to be felt for some time. 
 
Nonetheless, we have a stronger foundation and will continue to respond tactically to any immediate challenges, 
whilst remaining steadfast in the execution of our longer-term objectives. 
 
We would like to express our gratitude to all our employees across the Group, particularly those on the front 
line, who courageously put the needs of their colleagues and our customers ahead of their own. We would also 
like to thank our suppliers and partners for their commitment to our business, as well as our customers for their 
continued support. The past year has again demonstrated the resilience of our business, driven by the passion 
and commitment of all our people. 
 
Any reference to future financial performance included in this announcement has not been reviewed or reported 
on by the Group's external auditors and does not constitute an earnings forecast.                                       

H Brody                                      R Bagattini 
Chairman                                     Group Chief Executive Officer 

Cape Town 
25 August 2021 
 
DIVIDEND DECLARATION 
The Board of Directors ('Board') has taken a decision to declare a final gross cash dividend per ordinary share 
('dividend') based on a pay-out ratio of 60% of second half headline earnings of the combined Woolworths South 
Africa business segments (FBH, Food and WFS). 
 
Notice is hereby given that the Board has declared a final gross cash dividend per ordinary share ('dividend') of 
66.0 cents (52.8 cents net of dividend withholding tax) for the 52 weeks ended 27 June 2021, a 25.8% decrease 
on the prior year's 89.0 cents per share. The dividend has been declared from reserves and therefore does not 
constitute a distribution of 'contributed tax capital' as defined in the Income Tax Act, 58 of 1962. A dividend 
withholding tax of 20% will be applicable to all shareholders who are not exempt. 
 
The issued share capital at the declaration date is 1 049 977 230 ordinary shares. The salient dates for the 
dividend will be as follows: 
 
Last day of trade to receive a dividend                         Tuesday, 14 September 2021 
Shares commence trading 'ex' dividend                           Wednesday, 15 September 2021 
Record date                                                     Friday, 17 September 2021 
Payment date                                                    Monday, 20 September 2021 
 
Share certificates may not be dematerialised or rematerialised between Wednesday, 15 September 2021 and 
Friday, 17 September 2021, both days inclusive. Ordinary shareholders who hold dematerialised shares will have 
their accounts at their CSDP or broker credited or updated on Monday, 20 September 2021. Where applicable, 
dividends in respect of certificated shares will be transferred electronically to shareholders' bank accounts on 
the payment date. Where the transfer secretaries do not have the banking details of any certificated 
shareholders, the cash dividend will be held in trust by the transfer secretaries pending receipt of the relevant 
certificated shareholder's banking details after which the cash dividend will be paid via electronic transfer into 
the personal bank account of the certificated shareholder. 
 
CA Reddiar 
Group Company Secretary 

Cape Town 
25 August 2021 
 
CHANGES TO THE BOARD OF DIRECTORS AND BOARD COMMITTEES 
As announced on SENS on 23 August 2021, Ms Zyda Rylands has resigned from the Board and as a member of 
the WHL Risk and Compliance, Social and Ethics and Sustainability Committees with effect from 30 September 2021. 
 
The Board expresses its appreciation to Ms Rylands for her valuable contributions as an Executive Director. 
 
AMENDMENT OF POLICIES 
Shareholders and noteholders are further notified that as part of the WHL Board's annual review of policies, 
the Appointment of Directors' and Director Conflicts of Interests Policies were recently updated to align with 
market practice. Copies of the updated Policies are available on the Company's website 
https://www.woolworthsholdings.co.za/governance/policies                          

ABOUT THIS ANNOUNCEMENT 
Statement and availability 
This short form announcement, including the constant currency and pro forma financial information, is the 
responsibility of the directors and is only a summary of the information in the full announcement. The provisional 
audited Group Annual Financial Statements were approved by the Board on 25 August 2021, and the information 
in this announcement has been correctly extracted from the audited Group Annual Financial Statements, upon 
which EY have issued an unqualified report. The auditors' report does not necessarily report on all of the 
information contained in this announcement. Shareholders and bondholders are therefore advised that, in order 
to obtain a full understanding of the nature of the auditors' engagement, they should obtain an electronic copy 
of the auditors' report, including Key audit matters, together with the accompanying Annual Financial Statements 
from the Company's registered office, or on the Company's  website: 
https://www.woolworthsholdings.co.za/wp-content/uploads/2021/08/whl_annual_financial_statements_2021.pdf 
Any investment decisions by investors and/or shareholders and/or bondholders should be based on consideration of 
the full announcement, which has been published on SENS and available at: 
https://senspdf.jse.co.za/documents/2021/JSE/ISSE/WHLE/WHLFY21.pdf and on the Company's website: 
https://www.woolworthsholdings.co.za/wp-content/uploads/2021/08/whlfy21.pdf

An electronic copy of the full announcement may be requested and obtained, at no charge, from the Group 
Company Secretary at Governance@woolworths.co.za or the Head of Investor Relations at 
InvestorRelations@woolworths.co.za The Final Analyst Presentation is also available on the Company's website. 
 
DIRECTORATE AND STATUTORY INFORMATION 
Non-executive Directors 
Hubert Brody (Chairman), Zarina Bassa (Lead Independent Director), Christopher Colfer (Canadian), 
Belinda Earl (British), David Kneale (British), Nombulelo Moholi, Thembisa Skweyiya, Clive Thomson 
 
Executive Directors 
Roy Bagattini (Group Chief Executive Officer), Reeza Isaacs (Group Finance Director), Sam Ngumeni, Zyda Rylands 
 
Group Company Secretary 
Chantel Reddiar 
 
Registration number 
1929/001986/06 
 
LEI 
37890095421E07184E97 
 
Share code 
WHL 
 
Share ISIN 
ZAE000063863 
 
Bond Company code 
WHLI                   

Registered address 
Woolworths House, 93 Longmarket Street 
Cape Town, 8001, South Africa 
PO Box 680, Cape Town 8000, South Africa 
 
Tax number 
9300/149/71/4 
 
JSE sponsor and debt sponsor 
Rand Merchant Bank (A division of FirstRand Bank Limited) 
 
Transfer secretaries 
Computershare Investor Services Proprietary Limited 
15 Biermann Avenue, Rosebank, 2196, South Africa    
 
26 August 2021 

Date: 26-08-2021 07:05:00
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