Woolworths Holdings share price opened 6 percent weaker on the JSE today after the retailer reported a 17.7 percent decline in headline earnings per share (Heps) to 346.3 cents a share for the year to end June 24, down from 420.9c as compared to last year. Picture: Nabeelah Shaikh
DURBAN - Woolworths Holdings share price opened 6 percent weaker on the JSE today after the retailer reported a 17.7 percent decline in headline earnings per share (Heps) to 346.3 cents a share for the year to end June 24, down from 420.9c as compared to last year.

Part of the company’s woes was a result of an impairment charge of A$712.5 million  (R6 93 billion) suffered in its subsidiary, David Jones in Australia.  

Woolworths chief Ian Moir said 2018 has been a difficult year for the group. “Significant costs and disruption from transformation initiatives in David Jones and poor performance in our fashion business in South Africa have led to a result for the group that is disappointing. This was exacerbated by challenging economic and trading conditions in both markets,” Moir said.

The group grew its turnover by 1.6 percent to R75bn during the period.

The group cut its final dividend by 27.5 percent to 130.5c, taking its total dividend to 239c, a 23.6 percent decline from the previous year’s 313c.

In the group’s five divisions, food was its star performer, growing both sales and profit by more than 8 percent.

The group’s share price declined to R48.08 a share, down from Wednesday’s closing price of R51.55. 

- BUSINESS REPORT