Trading space declined by 4.5%, supporting a double-digit increase in trading densities, it said. Online sales grew by 13.2% and contributed 4.4% to South African sales. Adjusted operating profit increased by 48.7% to R1 610 million, resulting in an operating margin of 11.9% for the year, compared to 8.4% in the prior year.<\/p>\n
“Our Food<\/strong> business grew turnover by 4.2%, reflecting the impact of the high Covid base and the return to out-of-home consumption, an increasingly competitive backdrop, and low product inflation across key categories,” Woolworths said.<\/p>\n Space grew by 1.8% relative to the prior year. Online sales increased by 45.4%, contributing 3.2% of South African sales, assisted by the further rollout of the group’s on-demand online offering.<\/p>\n The Woolworths Financial Services<\/strong> (WFS) book reflects a year-on-year increase of 6.8% at 30 June 2022, driven by demand and a recovery in post-Covid spending, the group said. ROE increased to 18.4%, from 13.6% in the prior year.<\/p>\n Looking ahead, the retail giant said that the global macro environment remains volatile, with rising inflation and interest rates posing a headwind to the outlook for economic growth.<\/p>\n “Whilst this impact on Australian consumer spend should be somewhat mitigated by strong household balance sheets, and high employment, South African consumption faces high unemployment and severe energy shortages.<\/p>\n “Global supply chain uncertainties and elevated freight costs have been exacerbated by recent global events, placing significant upward pressure on raw material availability and input pricing.<\/p>\n “Notwithstanding this backdrop, the current momentum of our apparel businesses is expected to continue, and our food business is expected to deliver a solid underlying performance whilst investing in key initiatives.”<\/p>\n
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