- SALES FROM CONTINUING OPERATIONS $42.3 BILLION UP 12.6%
- EARNINGS BEFORE INTEREST AND TAX $2,111.3 MILLION UP 22.6%
- NET PROFIT AFTER TAX $1,294.0 MILLION UP 27.5%
- EARNINGS PER SHARE UP 19.7%
- DIVIDEND PER SHARE UP 25.4% TO 74 CENTS
“Overall this has been a successful year with strong results in all divisions. Our team continues to deliver on our strategy. We are continually looking for ways to improve our business by reinvesting the proceeds of our growth into even greater value, service levels and quality for our customers. We believe we are very well positioned for future growth.” Michael Luscombe
The Board of Woolworths Limited today released the profit
and dividend announcement of Woolworths Limited and its controlled entities for the 52 weeks ended 24 June 2007.
Woolworths Limited Managing Director and CEO, Michael Luscombe said, “Today we are pleased to report a net profit increase of 27.5% to $1,294.0m. This result would not be possible without the many years of hard work in establishing the foundations for the positive momentum that we are currently experiencing. Our focus on the customer, the quality of our people and the successful execution of our business strategies, highlighted by the supply chain transformation in our Supermarket Group, have all contributed to this result. We believe we are very well positioned for future growth.”
Commenting on the result, the Chairman of Woolworths Limited, James Strong said, “This result is a real credit to the people within Woolworths. The results reflect the strength of the Woolworths team and their ability to deliver sustainable profitable growth. Backed by these strong results, Woolworths is in a great position to continue to reinvest in the business, and continue to reinvigorate and enhance our offering to customers.
The 25.4% increase in Dividend Per Share (DPS) to 74 cents (1H: 35 cents, 2H: 39 cents) from 59 cents in 2006 reflects the confidence that the Board has in the company’s operations, results and the continued drive to increase future shareholder returns.”
In summary, Woolworths’ results for the year ended 24 June 2007 are as follows:
- Sales up 12.6% from continuing operations
- Total sales for this year compared with last year up 12.6% to $42,477 million
- Earnings before interest, taxation, depreciation and amortisation (EBITDA) up 20.3% to $2,700.6 million
- Earnings before interest and taxation (EBIT) up 22.6% to $2,111.3 million
- Net operating profit after tax up 27.5% to $1,294.0 million
- Earnings per share (EPS) up 19.7% to 108.8 cents
- Final dividend per share (DPS) 39 cents to bring total DPS for the year to 74 cents, up 25.4% with total dividend paid and proposed for the year amounting to approximately $892.5 million
- EBIT margins improved from 4.56% in 2006 to 4.97% in 2007.
Other highlights:
- Average return on funds employed (ROFE) was 27.1%. Normalising for the timing of acquisitions in 2006, ROFE (average) increased from 24.2% to 27.1%.
- Reduction in average inventory days from 32.7 days to 32.5 days, a reduction of 0.2 days.
