AUSTRALIAN REPORTS Sales, Profit Increase By Woolworths

Press, Volume CVIII, Issue 31768, 27 August 1968, Page 21

AUSTRALIAN REPORTS Sales, Profit Increase By Woolworths

C.V.Z. Press Association— Copyright)

SYDNEY, August 26.

Sales and profits of Woolworths, Ltd, increased “satisfactorily” in the six months to July 31. In the half-yearly report, directors said sales in the retail trade generally in the early part of this year were less buoyant than in preceding months, but had improved considerably since April.

A steady ordinary dividend of 5 per cent was declared, it is payable October 31. They said substantial increases in wages and the increase in company taxation would require a considerable increase in retail sales to offset these additional costs. “These cost increases, which apply to all processes of production and distribution, together with an increase of 20 per cent in the sales tax on a large range of consumei goods, must have an inflationary effect, particularly if additional state taxes, which have been suggested as a re-

suit of the Federal budget, are imposed,” they added. During the six months, Woolworths sales showed a satisfactory increase over the corresponding period last year, and the trading profit had increased proportionately, the report said. Sales since July 31 had continued at the satisfactory level of the preceding sis months. The report did not give trading figures. Berlei United Profit Fall Sterling devaluation and finer profit margins trimmed 1967-68 net profit of founda tion garment manufacture! Berlei United, Ltd, Sydney, by 15.9 per cent. Profit for the year to June 30 declined by $140,027 to $737,867 after a 7} per cent reduction in sales to $15,100,000. The profit decline still gives a wide margin of cover foi the steady 15 per cent divi dend. Directors say that the sales and profit drop reflected sterling devaluation. “Sales of 1 the Australian operating company were maintained against strong competition,” they say, “but owing to increases in wage rates and other factors, expenses rose particularly in the second part of the year and profit margins were lower than in the previous year.”