Woolworths Research

Woolworths (WHL) Results Snapshot 1H23

Diluted HEPS 290cps (+74.9% y-y; Adj +75.5% y-y).
David Jones disclosed as a discontinued operation.
Turnover and concessions sales up 18.5% y-y, and 16.3% y-y in
constant currency. Due mainly to low Covid-19 base in Australia.
Sales growth in last 6 weeks with clean base +8.8% y-y.
Strong GPM improvement from 35.1% to 37.1%, but Food GPM
down 30bps to 23.8%. Apparel GPM up with more full-price sales
Expense growth (cont. ops) +15.3% y-y with expense to sales
ratio up from 27.1% to 27.8%.
OPM (cont. ops) increase from 8.6% to 9.5%.
Dividend of 159cps (1H22: 81cps).
Gross debt stable at R5.3bn (1H22: R5.1bn) with cash R4.7bn
(1H22: R5.4bn).
Loadshedding impact of R90m in SA over past 6 months. Food
business most impacted.
Outlook for SA, likely slower profit growth in 2H.
Sale of David Jones expected to be completed end March.