Woolworths Research

Woolworths (WHL) FY22 Results Snapshot

Diluted HEPS 392.7cps (+6.5% y-y; Adj +9.7% y-y). Improved profitability in second half.
Turnover and concessions sales up by 1.4% y-y, and 2.6% y-y in constant currency. Improved trading in 2H22.
GPM down 30bps from 36.8% to 36.5%, with the Food GPM down 50bps to 24.0% and CRG down 130bps to 59.5%. Improvement in FBH (+210bps) while David Jones flat at 35.2%.
Expense growth +0.9% y-y with expense to sales ratio down from 30.9% to 30.6%.
OPM stable at 8.5%.
Dividend of 229.5cps (FY21: 66cps) as dividend payout of 70% restored to WHL SA and CRG from 2H22.
Gross debt down to R4.8bn (LY: R6.0bn) with cash R5.1bn (LY: R5.0bn).
Share buybacks of R1.5bn in June-July 2022.
Additional David Jones special dividend of AUD50m planned in FY23, following AUD90m (R1bn) paid in FY22 (used to reduce debt).