COMPANY RESULTS: Blackouts cost Woolies R15m a month in profits last year

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Everyone’s feeling the pain from rolling blackouts – even those juicy Woolies chickens. But if you’re a shareholder, you should be delighted as the retailer has declared an interim dividend almost twice that posted in 2021, from 80.5c per share to ...

On the dark side, Eskom’s powerlessness cost Woolworths almost R90-million in profit over just six months, and blackouts are expected to continue putting a damper on business for the foreseeable future.

It said given the erratic and unpredictable nature of the rolling blackouts, it was focused on developing a “longer-term business solution to sustainably mitigate both upstream and downstream impacts to this challenge”. “We have made significant past investments in our energy supply capabilities, with 99% of our stores and all our distribution centres already equipped with generator capacity.”

Despite pressure on its food business, turnover grew by 7.6%, with sales growth accelerating to 8.6% in the last six weeks of the period, despite blackouts.The retail group said its “Fashion Beauty Home” turnaround strategy was gaining traction, with turnover and concession sales growing by 11.2% and 11% respectively. It had also focused on full-price sales and a smaller but more profitable winter clearance sale, which saw gross profit margins increasing to 48%.

 

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