Table of Contents
Key Points
- Woolworths' revenue surged to $4.3 billion, a 6.39% increase from the previous year, driven by strong South African sales and online growth
- Despite revenue growth, Woolworths' profit dropped 48.81% due to tough trading conditions in Australia and increased operational costs.
- Total equity fell by 9.11% to $609.78 million, with total assets declining 1.34% to $2.16 billion amid ongoing market challenges.
Woolworths Holdings, a Cape Town-based multinational retail juggernaut led by Group CEO, South African executive Roy Bagattini, has demonstrated financial resilience for the fiscal year ending June 30, 2024.
The company's revenue surged to $4.3 billion, primarily driven by strong sales growth in its core South African operations despite the challenging trading conditions,
The group’s recently published audited financial result revealed a 6.39-percent increase in revenue, rising from R72.69 billion ($4.06 billion) in the 2023 fiscal year to R77.34 billion ($4.32 billion) in the corresponding period of its 2024 fiscal year.
The strong performance in South Africa was sufficient to drive overall revenue growth with support from online sales, which grew by 13.3 percent and contributed 9.2 percent to the Group's total sales for the year.
Woolworths profit drops 48.81 percent amid revenue growth
Woolworths saw a significant decline in profit, falling 48.81 percent from R5.08 billion ($283.56 million) in 2023 to R2.6 billion ($145.17 million) in 2024, despite revenue growth.
The drop is largely due to a tough trading environment, especially in Australia, where rising interest rates and increased living costs hurt consumer confidence, foot traffic, and spending.
The company's apparel segment, notably Country Road Group, also faced negative operating leverage, impacting profitability. Additionally, investments in future growth and a non-cash impairment charge for the Politix brand further pressured earnings.
The impact of these challenges was reflected in Woolworths’ financials, with total equity falling by 9.11 percent from R12.02 billion ($670.9 million) to R10.93 billion ($609.78 million).
The company’s total assets also experienced a significant decline, plunging by 1.34 percent from R39.23 billion ($2.19 billion) to R38.70 billion ($2.16 billion) during the period under review.
Woolworths Holdings: Over 80 years of market dominance
Established more than eight decades ago, Woolworths Holdings continues to dominate markets across South Africa, Australia, New Zealand, and more than 10 countries in Sub-Saharan Africa, maintaining its position as one of the leading entities listed on the Johannesburg Stock Exchange.
Despite challenges in its operating environments, the company’s strategic presence and leadership signal a commitment to navigating the evolving retail landscape. Roy Bagattini is credited with steering Woolworths towards impressive financial results in recent years and remains invested in the multinational retail juggernaut with a minority stake of 0.158 percent, or 1,074,403 shares.
