W'worths Aust. Lifts Sales By 11%

Press, Volume CVI, Issue 31333, 1 April 1967, Page 18

W'worths Aust. Lifts Sales By 11%

(New Zealand Press Association)

SYDNEY, March 31.

Woolworths, Ltd., Australia’s biggest retailer in terms of sales, lifted turn-over 11 per cent to a record 350 million dollars in the year to January 25.

Directors disclosed the sales figures in the annual report, which was released today.

They have already reported a record net profit of 8.3 m dollars, compared with 7.6 m dollars for the previous year. Today’s report also discloses that certain freehold properties of Woolworths Properties, Ltd., which were written up by 1,937,584 dol-

lars in 1955, have now been written down by the same amount during the last financial year. Directors say the reduction ■ in value eliminates the possil bility that certain property - values may be overstated as a > result of the 1955 valuation. This devaluation, together

with 62,416 dollars remaining in the asset revaluation reserve of the subsidiary company transferred to reserve for development, takes the asset revaluation reserve in consolidated accounts down from 4,082,266 dollars to 2,082,266 dollars. A further point in the consolidated accounts is a 1,474,281 dollars reduction in the . value of stock to ' 40,548,343 dollars in spite of the increase in sales to a new record during the year. Main Contributors Discussing operations for the year, directors say the variety, food and supermarket divisions continued to be the main contributors to profits. The big W. division is operating to the budgeted programme, but has not yet contributed profits, because of absorption of substantial expenses. These include expenses in opening new big W. stores at Liverpool and Bankstown. Directors expect that big W. units will contribute to profits after a two-year trading period. Purchase-Lease During the year, purchaselease arrangements were entered into which assisted the liquidity of the company. At balance date, negotiations were progressing to dispose of certain properties during the coming year. This would provide funds which would assist the development programme which was at hand.