Load shedding is slashing Woolworths' profits by R15m a month | Business

  • 📰 News24
  • ⏱ Reading Time:
  • 62 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 28%
  • Publisher: 80%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Woolworths' first-half pre-tax profit rose by more than half and it nearly doubled dividends even as load shedding shaved off R15 million every month from local operating profit. | News24_Business

Food and fashion group Woolworths has increased its first-half earnings by more than half.

While load shedding's total impact on adjusted operating profit for the period came in at about R90 million, strong results from Australia saw a surge in sales off a low base due to Covid-19 lockdowns in the previous reporting period. This helped lift headline earnings 70% to R2.74 billion for its six months to 25 December.

It said higher inflation and interest rates were anticipated to bring more pressure to bear on consumer demand and costs, while in SA"an imminent resolution to the debilitating power crisis and stimulus for economic growth appears remote". It was also able to pass on selling price increases of 10.8%, adding this was positively affected by an"ongoing focus on full-price sales and the continued reduction in markdowns".

"This is not notwithstanding the considerable disruption caused by load shedding, which continues to have a pronounced impact in terms of foregone sales and increased costs."Woolworths said the"erratic and unpredictable nature" of load shedding meant the group was now focusing on developing a"longer-term business solution" to"mitigate both upstream and downstream impacts to this challenge".

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

_Business Due to the sale of their bags I'm sure...

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 4. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

ANC declares R15-million donation from company linked to sanctioned Russian oligarch | News24The ANC received a R15-million donation from a company linked to a sanctioned Russian oligarch in the third quarter of the 2022-'23 financial year. Hmnm... Like Russia helped Trump to win the election, they are helping the ANC now. Birds of a Feather. Explains a lot. And this is what they declare...
Source: News24 - 🏆 4. / 80 Read more »