Woolworths, Sydney profit down 4 p.c.

Press, Volume CXI, Issue 32540, 25 February 1971, Page 17

Woolworths, Sydney profit down 4 p.c.

(New Zealand Press Association)

WELLINGTON, February 24. The net profit of Woolworths, Ltd, Sydney, fell $431,000, or 4.4 per cent, to $9,366,000 in the year to January 27, the chairman, Sir Theo Kelly, said in the preliminary report.

The comparison was made on figures which had been adjusted for the increase in company tax for last year. In his report, Sir Theo Kelly said that the reduction in profit has been caused primarily by a substantial increase in award wages in the August to November period, followed immediately by the national wage increase of 6 per cent, the combined effect of which could not be offset by the end of the financial year. In addition, there were considerable non - recurring expenses associated with the

launching of the company’s j “lower price food” policy early in January. Sales continued to show a satisfactory increase over the previous year. A final dividend of 6 per cent, making a steady 12 per cent for the year, will be paid on April 30. The profit was reached after providing $6,982,000 compared with $6,271,000 for depreciation, and $7,808,000 compared with $8,211,000, for tax. '

Profit equals an earning rate of 16.37 per cent on ordinary capital of $52,795,441 after last year’s l-for-10 bonus issue. This compares with 18.9 per cent last year.