Woolworths well ahead

Press, 22 August 1978, Page 19

Woolworths well ahead

Woolworths, Ltd, Australia increased net trading [profit 21.1 per cent to sAustll.4M in the six months to July 26, compared with the previous corresponding half-year. The profit was after providing SI.2M more for tax at $7.2M, which takes into account an income tax benefit from investment allowance of $1,338,000 (last year $1,232,000) but excludes an expected tax relief from stock valuation adjustment of $1,125,000 (last year $1,115,000). Extraordinary items contributed an additional profit of $76,000 (profit on sale of fixed assets $534,000 less income tax for future years j $458,000). The net contribui tion last year was $294,000. I Sales for the half-year were up 15.6 per cent at [5796.9M. I The company continues to improve its market share in both food and general merchandise, the report says. The directors again point out that the results for the first half-year are not necessarily a reliable guide to

what max be achieved in the full financial year. > The improved result for the half-year is regarded as most satisfactory, particu- [ larly in view of the effect of 'the industrial dispute which ;caused a shut-down of warehouses in New South Wales [during the latter weeks of ■ the half-year. [ The full effect upon profit [is as yet undetermined, however the directors estimate the loss of sales at $1214. | Costs have been well controlled, and this assisted in The improved ratio of profit [to sales of 2.57 c in each ‘sales dollar after taxation [relief items, compared with [ 1.53 c for the same period last year. During the six months, ; nine supermarkets, two discount stores, and one Rockmans store were opened. As i a result, the effective selling i space at the end of July was ! 654,000 square metres, an increase of 7.4 per cent comipared with July last year. An unchanged interim 'dividend of 7 per cent (3.5 c ila share) will be payed on [October 31, ex dividend on '‘September 11.