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Woolworths on Wednesday reported a nearly 15% rise in annual profit as promotional sales, online growth and lower debt offset the impact of power cuts and a cost-of-living crisis in its operating regions. The food and fashion retailer posted headline earnings per share of 423.4c from continuing operations in the 12-month period ended 25 June, from 368.7c 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. Woolworths has had to increase its diesel spend on backup generators to keep produce fresh 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 backup 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 R3.13/share. — Tannur Anders, (c) 2023 Reuters Get the latest tech news in your inbox at 5am daily
