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Woolworths Holdings Limited
(Incorporated in the Republic of South Africa)
Registration number 1929/001986/06
LEI: 37890095421E07184E97
Share code: WHL
Share ISIN: ZAE000063863
Bond Company code: WHLI
("the Group")
TRADING UPDATE IN RESPECT OF THE 18 WEEKS ENDED 3 NOVEMBER 2024
This announcement provides an update on the Group's trading performance for the 18 weeks ended
3 November 2024 (the "period").
GROUP
Group turnover and concession sales for the period increased by 6.5% and by 6.8% on a constant currency basis
against the prior comparative 18-week period (the "prior period"). In South Africa, whilst discretionary spend
remains relatively constrained, consumer sentiment is improving, supported by moderating inflation, the start
of easing interest rates, and the prolonged suspension of loadshedding, amongst other factors. In Australia,
however, the sustained effect of high interest rates and elevated living costs continue to weigh on both retail
footfall and spend.
WOOLWORTHS
Our Food business delivered market-leading turnover and concession sales growth of 12.1% and 7.3% on a
comparable-store basis, reinforcing its strength and resilience, and the trust that customers place in our Woolies
brand. This was driven by positive underlying volume growth on improved availability, ongoing innovation, and
our enhanced overall value proposition. Excluding Absolute Pets, which was acquired in the fourth quarter of the
previous financial year, Food sales increased by 9.6%. Price inflation for the period averaged 6.2%, with trading
space, excluding Absolute Pets, increasing by 2.0% on the prior period. Online sales increased by 36.9%,
contributing 6.2% of Food sales, driven by our on-demand offering, Woolies Dash, which delivered sales growth
of 54.4% for the period.
Fashion, Beauty and Home ("FBH") momentum has accelerated, with turnover and concession sales increasing
by 3.5% and by 2.8% on a comparable-store basis. The first 18 weeks of sales include the Fashion winter
clearance, which constitutes a high proportion of the trade for the period, and resulted in a FBH price movement
of 1.9%, with Fashion at a deflation of 0.3%. Beauty delivered accelerating sales momentum, growing by 20.6%,
as we increasingly establish ourselves as the Beauty destination in South Africa. In line with our strategy to
rationalise unproductive space, net trading space decreased by 1.8% relative to the prior period, whilst online
sales increased by 36.5% and contributed 6.5% of FBH sales.
The Woolworths Financial Services book at the end of October 2024 was 3.5% below last year, year-on-year, and
up 2.1% excluding legal book debt sales. The annualised impairment rate for the four months ended
31 October 2024 was 5.9%, compared to 7.5% in the prior period.
COUNTRY ROAD GROUP ('CRG')
Trading conditions in Australia and New Zealand continue to prove more challenging than anticipated, with the
retail sector facing further declines in footfall (albeit that the pace of decline is easing), intense promotional
activity, and the shift of spend towards value brands.
Within this context, CRG sales declined by 8.8% for the period and by 13.8% on a comparable-store basis.
Notwithstanding the challenging macroeconomic backdrop, the Country Road brand remains resilient, and
Trenery is delivering strong topline growth, following the repositioning and rebranding of its offering. We remain
focused on improving the positioning and performance of the other brands, particularly Witchery, which are at
different stages of their respective repositioning. Trading space decreased by 1.6% during the period, while
online sales contributed 26.6% of total sales for the period. Notwithstanding our ongoing focus on costs, which
remain well controlled, the impact of a weaker trading environment is resulting in continued negative
operational leverage for this business.
CONSTANT CURRENCY INFORMATION
Constant currency information has been presented to illustrate the impact of changes in the Group's major
foreign currency, the Australian dollar. In determining the constant currency growth rate, turnover and
concession sales denominated in Australian dollars for the period have been adjusted by application of the
aggregated monthly average Australian dollar exchange rate for the prior period. The aggregated monthly
average Australian dollar exchange rate is R11.91 for the period and R12.16 for the prior period. Foreign currency
fluctuations of the Group's rest of Africa operations are not considered material and have therefore not been
applied in determining the constant currency growth rate.
The information contained in this announcement, including constant currency and pro forma information, is
presented in accordance with the JSE Limited Listings Requirements, and has not been audited, reviewed or
reported on by the Group's external auditor. The constant currency and pro forma information is the
responsibility of the Group's directors and has been prepared for illustrative purposes only and, because of its
nature, may not fairly present the Group's financial position, results of operations or cash flows.
Contact:
ZaidManjra@woolworths.co.za (Group Finance Director)
JeanineWomersley@woolworths.co.za (Group Strategy and Investor Relations)
KerryBecker@woolworths.co.za (Investor Relations)
InvestorRelations@woolworths.co.za
Cape Town
11 November 2024
JSE Equity and Debt Sponsor
Investec Bank Limited
2
Date: 11-11-2024 07:05:00
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