Johannesburg- Woolworths Holdings pointed to difficult trading conditions in both South Africa and Australia as adjusted diluted headline earnings per share (HEPS) declined by 2.4 percent for the first half of the 2017 financial year.However, the retailer's overall sales increased by just 6.7 percent to R37.8 billion compared with the prior year in the 26 weeks ending December 25.
Earnings per share increased by 36 percent because of a R1.7 billion profit on disposal by department store chain David Jones of its Market Street property in Sydney.
David Jones' sales also grew by 4 percent and comparable sales by 0.5 percent in Australia.
This was after adjusting for the timing of the Boxing Day sale, which falls into the second half of this financial year, as well as by last year's termination of the Dick Smith electronics concession.
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Woolworths, which owns Country Road, Witchery and Mimco, also acquired another brand, Politix, to complement its portfolio and to extend the brand into David Jones stores.
Clothing and general merchandise sales grew by 3.5 percent, a good result in a tough and promotional market.
The company said food sales grew by 9.5 percent, with comparable sales up 5.6 percent.
Price movement of 9.2 percent remained high due to the impact of the drought.
Looking ahead, Woolworths said the economic and market conditions were expected to remain difficult into the second half of the financial year as the environment in both markets was expected to continue to be highly promotionally driven
Woolworths declared an interim gross cash dividend per ordinary share of 133 cents, 113.05 cents net of dividend withholding tax, for the 26 weeks ended 25 December, thereby maintaining the dividend as per the prior period.