Woolworths has made an announcement to its shareholders that it is expecting expects its earnings per share for the 2023 financial year to increase by up to 40%.
The company released a trading update this morning regarding the 52 weeks ended 25 June 2023, wherein it provided the expected ranges for the change in total group earnings for the period.
The update comes after another trading statement that was released on the 28th July, where Woolworths informed shareholders that it expects its earnings per share for the total group to increase by more than 20%.
The retail company has revealed that it has expectations for the following changes to its total group earnings for the period, compared to its 2022 financial year ended 26 June 2022:
- Earnings per share (EPS) – 30% to 40% increase
- Headline earnings per share (HEPS) – 25% to 35% increase
- Adjusted HEPS – 30% to 40% increase
The large increase follows Woolworths’ legal completion of the sale of David Jones, which was concluded on the 27th of March 2023. The company said Accordingly, David Jones will be reported as a discontinued operation in the group’s full-year results.
“Given thisx, coupled with the impact of government-imposed lockdowns in Australia in the first half of the prior year, the group’s results for the 52 weeks ended 25 June 2023 are therefore not directly comparable to the 52 weeks ended 26 June 2022.” – the retailer added.
Due to this, the retailer also provided its expectations for increases in earnings from continuing operations compared to the previous year:
- EPS – 10% to 20% increase
- HEPS – 10% to 20% increase
- Adjusted HEPS – 10% to 20% increase
In their update in July for trading, Woolworths said South Africa’s load-shedding affected its local fresh food business and resulted in increased waste and a higher overall cost of doing business.
In Australia and New Zealand, the retailer saw a strong first-half result, but this momentum decelerated in the second half as the impact of sustained increases in interest rates and higher costs of living weighed on consumer confidence and discretionary retail spend.