Woolworths earnings plummet, but SA food business shows strong growth
Woolworths Holdings says the Covid-19 pandemic’s toll on its overall business deepened in the second half of its financial year.
The retailer reported a 54.5% drop in adjusted profit before tax to R2.2 billion for the 52 weeks ended 28 June.
Headline earnings per share dropped over 65% and total dividend per share fell more than 53%.
Bruce Whitfield interviews Roy Bagattini, who returned to South Africa to take up the Group CEO position in February.
I don't think one could have contemplated what we've been through over the last several months!Roy Bagattini, Group CEO - Woolworths Holdings
And by coming into a business in trouble in the midst of a national and global crisis, has it given you more leeway perhaps to be a bit more forceful than a CEO might ordinarily be in the first couple of months of taking over?Bruce Whitfield, The Money Show host
Certainly it brings into stark focus the vulnerabilities and the areas that one has to get after. Covid for us has, in some ways, accelerated and even accentuated the things that I think we need to address if we are going to turn this phenomenal business around.Roy Bagattini, Group CEO - Woolworths Holdings
Bagattini says in South Africa, Woolworths benefited from the spike in food sales as people stockpiled supplies during the pandemic.
Whitfield asks about the retailer's particularly troubled David Jones portfolio in Australia.
It's been a very painful journey... Some of the overarching objective here is how do we extract value out of those investments going forward...Roy Bagattini, Group CEO - Woolworths Holdings
Hear more about the Woolworths strategy going forward on The Money Show:
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