Woolworths Research

Woolworths (WHL) – Results Snapshot 1H22

Diluted HEPS 165.8cps (-35.5% y-y; Adj -16.3% y-y). Results impacted by lockdowns in Australia, JobKeeper allowances and rent relief in prior period, and profit on the sale property and lease
exit gains. Turnover and concessions sales drop by -2.1% y-y, and 0.3% y-y in constant currency. Turnover down -1.0% y-y. GPM down 70bps from 36.7% to 36.0%, with the Food GPM down 70bps to 24.1% and CRG down 50bps to 59.5%. Improvements in FBH (40bps) and David Jones (20bps) GPMs. Expenses growth 1.8% y-y with expense to sales ratio increasing from 29.6% to 30.5%. OPM drop from 9.6% to 7.9%. Dividend of 80.5cps (1H21: nil). Gross debt down to R5.0bn (LY: R13.9bn) with cash R5.4bn (1H21: R7.2bn). David Jones special dividend declared AUD90m (R1bn) after period end, to be used to reduce SA debt.