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A shopper walks past the Woolworths store at the Trade Route Mall in Lenasia outside Johannesburg, South Africa, February 8, 2023. REUTERS/Siphiwe/File Photo Acquire Licensing Rights
JOHANNESBURG, Aug 30 (Reuters) - South African retailer Woolworths (WHLJ.J) on Wednesday reported a nearly 15% rise in annual profit as promotional sales, online growth and lower debt offset the impact of power cuts in the country and a cost-of-living crisis in its operating regions.
The food and fashion retailer posted headline earnings per share - a profit measure - of 423.4 South African cents from continuing operations in the 12-month period ended June 25, from 368.7 cents seen a year earlier.
The company sold an Australian clothing division earlier this year, therefore profit from continuing operations are a more precise measure for the year.
Known for its high-end products, the company has seen increased food wastage as a result of South Africa's worst rolling blackouts on record, it said in a statement in July.
Woolworths has had to increase its diesel spend on back-up generators to keep produce fresh and operations afloat across the South African supply chain.
Adding to the risks, sticky inflation across both its South African and Australian operations prompted consumers to tighten their purse strings.
"The trading environment is likely to remain challenging across both geographies for the foreseeable future, as elevated inflation and interest rates pose a headwind to the outlook for disposable income and discretionary spend," the company said in a statement.
Woolworths announced a total dividend of 313 cents per share.
Reporting by Tannur Anders; Editing by Jacqueline Wong and Sherry Jacob-Phillips
