2012/02/16
WHL - Woolworths Holdings Limited - Unaudited interim group results for the 26 [JSE Securities Exchange - SENS]
 
WOWOW                                                                           
WHL - Woolworths Holdings Limited - Unaudited interim group results for the 26  
weeks ended 25 December 2011                                                    
Woolworths Holdings Limited                                                     
(Incorporated in the Republic of South Africa)                                  
Registration number 1929/001986/06                                              
Share code:  WHL                                                                
ISIN:  ZAE000063863                                                             
("the group" or "the company")                                                  
UNAUDITED INTERIM GROUP RESULTS FOR THE 26 WEEKS ENDED 25 DECEMBER 2011         
TURNOVER + 11. 4%                                                               
PROFIT BEFORE TAX + 26.8%                                                       
HEADLINE EARNINGS PER SHARE + 34.6%                                             
Group sales for the period grew 11.4% with stronger growth in the second        
quarter, particularly over the festive season. Sales growth was leveraged by    
improved gross margins and the favourable foreign exchange impact of a weaker   
rand, delivering a profit before tax growth of 26.8%.                           
A lower effective tax rate and the benefit of recent share buy-backs further    
advanced headline earnings per share 34.6% to 135.7 cents.                      
Strong cash generation from operations financed the higher investment in        
working capital brought about mainly due to the conversion of former franchise  
stores. Return on equity increased from 44.9% to 50.8% (excluding unrealised    
foreign exchange movements) as a result of the share buy-back programme and     
improved returns in the core businesses.                                        
Woolworths                                                                      
Food sales grew ahead of the market at 11.7%, with comparable store sales up    
8.4% and price movement of 4.8%. Gross profit margins improved from 24.2% to    
25.2% and profit before tax for the segment grew 18.5%. Return on sales was     
5.6%, up from 5.3% in the prior period.                                         
Clothing and General Merchandise sales grew 10.1%, with price movement of 7%.   
Clothing sales including Country Road's South African operations grew 11.2%,    
with sales in comparable stores up 5.9%. Gross profit margins also improved in  
the Clothing and General Merchandise segment from 42.9% to 44.3%. Excluding     
the positive impact of unrealised foreign exchange movements, profit before     
tax grew 15.1%, and return on sales was 17.0%, up from 16.3% in the prior       
period.                                                                         
Store costs were up 16% largely due to the addition of 12% more space,          
including the conversion of franchise stores. Other operating costs, excluding  
the positive impact of the unrealised foreign exchange movements, grew at 9%.   
Woolworths retail space, including Africa but excluding franchise conversions,  
grew by 2.3%, net of closures. Franchise conversions remain on track with 50    
stores now converted and a further nine to be converted during the second       
half.                                                                           
Country Road                                                                    
Country Road's total sales contracted 2.4% in Australian dollar terms, with     
Australian sales continuing to struggle amidst difficult trading conditions,    
falling 5.5% in comparable stores. However, gross margins have improved and     
costs remain tightly controlled, resulting in an increase in profit before tax  
in Australian dollars, which, as a result of the weaker rand, translates to a   
27.2% increase in profit. Return on sales at 6.4%, was up from 5.8% in the      
prior period. Return on equity declined from 22.6% to 19.2%.                    
Woolworths Financial Services                                                   
The overall book growth was 6.7% up on the prior period with net impairments    
increasing just 0.1% to 1.7%. Net interest income was impacted by lower         
yields, increasing by only 2.6% on the prior period. Costs excluding            
impairments were 10.8% up on the previous year impacted by further investments  
in fraud prevention, compliance and growth capacity. As a consequence, profit   
before tax was 10.4% below the previous period and the return on equity         
declined from 23.4% to 20.5%.                                                   
Outlook                                                                         
We believe that economic conditions in South Africa will remain constrained.    
However, trading for the first six weeks of the second half of the financial    
year has been positive, and we expect sales growth to be broadly in line with   
the first half.                                                                 
In Australia we expect the current competitive retail environment to continue   
and sales for the second half to be in line with the first half performance.    
Any reference to future financial performance included in this statement has    
not been reviewed and reported on by the company's external auditors and does   
not constitute an earnings forecast.                                            
Changes to the Board of Directors                                               
After serving nine years as chairman, Buddy Hawton retired from the board at    
the company's annual general meeting on 17 November 2011. The board expresses   
its deep gratitude to Buddy for his wisdom and guidance. On the same date,      
Simon Susman was appointed as chairman, Tom Boardman was appointed as the lead  
independent director and Zarina Bassa was appointed a non-executive director.   
Changes to Group Secretary                                                      
Cherrie Lowe resigned as group secretary on 31 January 2012. Thobeka Sishuba-   
Mashego was appointed as group secretary effective 1 February 2012.             
S N Susman            I Moir                                                    
Chairman              Group chief executive officer                             
Cape Town, 15 February 2012                                                     
Dividend Declaration                                                            
Due to transitional rules relating to the phasing out of STC and its            
replacement with the new Dividends Tax, the board has decided to defer the      
declaration of an interim dividend until after 1 April 2012, but as soon as     
reasonably possible thereafter. It is anticipated that the group's full year    
dividend cover policy, previously 1.5 times headline earnings per share, will   
be adjusted for the impact of the new tax, resulting in a lower dividend cover  
ratio.                                                                          
Thobeka Sishuba-Mashego                                                         
Group secretary,                                                                
Cape Town, 15 February 2012                                                     
Directorate and Statutory Information                                           
Non-executive Directors:                                                        
Simon Susman (Chairman), Peter Bacon (British),                                 
Zarina Bassa, Lindiwe Bakoro, Tom Boardman,                                     
Mike Leeming, Chris Nissen, Stuart Rose (British),                              
Thina Siwendu, Sindi Zilwa                                                      
Executive Directors:                                                            
Ian Moir (Group chief executive officer)                                        
(Australian), Zyda Rylands, Norman Thomson                                      
Group Secretary:                                                                
Thobeka Sishuba-Mashego                                                         
Share Code: WHL               ISIN: ZAE000063863                                
Registered Address:                                                             
PO Box 680, Cape Town, 8000                                                     
Woolworths House, 93 Longmarket Street                                          
Cape Town, 8001                                                                 
Registration Number:                                                            
1929/001986/06                                                                  
JSE Sponsor:                                                                    
Rand Merchant Bank                                                              
(A division of FirstRand Bank Limited)                                          
Transfer Secretaries:                                                           
Computershare Investor Services (Pty) Limited                                   
70 Marshall Street, Johannesburg, 2001                                          
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME                                  
                                                             52 weeks           
                                                            to 26 Jun           
                                                                 2011           
                                            Notes                  Rm           
Revenue                                                         25 841          
Turnover                                                        25 582          
Cost of sales                                                   16 683          
Gross profit                                                     8 899          
Other revenue                                                      127          
Expenses                                                         6 904          
Store costs                                                      4 448          
Other operating costs                                            2 456          
Operating profit                                                 2 122          
Investment income                                                  132          
Finance costs                                                       84          
Profit before earnings from joint ventures                                      
and associate                                                    2 170          
Earnings from joint ventures                                       129          
Earnings from associate                                              7          
Profit before tax                                                2 306          
Tax                                                                659          
Profit after tax                                                 1 647          
Other comprehensive income:                                                     
Net fair value adjustments on financial                                         
instruments, after tax                                            (17)          
Exchange differences on translation                                             
of foreign subsidiaries                                             37          
Other comprehensive income for the period, net of tax               20          
Total comprehensive income for the period                        1 667          
Profit attributable to:                                          1 647          
Shareholders of the parent                                       1 631          
Non-controlling interest                                            16          
Total comprehensive income attributable to:                      1 667          
Shareholders of the parent                                       1 651          
Non-controlling interest                                            16          
Reconciliation of headline earnings                                             
Earnings attributable to shareholders of the parent              1 631          
BEE preference dividend paid                                        19          
Basic earnings                                                   1 612          
Loss on disposal of property, plant and equipment                    4          
Impairment of property, plant and equipment                         24          
Tax impact of adjustments                                          (8)          
Headline earnings                                                1 632          
Headline earnings per share (cents)                              214.9          
Earnings per share (cents)                       2               212.2          
Diluted headline earnings per share (cents)                      209.8          
Diluted earnings per share (cents)               2               207.2          
Number of shares in issue (millions)                             755.2          
Weighted average number of shares                                               
in issue (millions)                                              759.5          
                                            26 weeks      26 weeks              
                                           to 25 Dec     to 26 Dec              
                                                2011          2010      %       
                                 Notes            Rm          Rm     change     
Revenue                                        14 214        12 797       11.1  
Turnover                                       14 137        12 687       11.4  
Cost of sales                                   9 090         8 327        9.2  
Gross profit                                    5 047         4 360       15.8  
Other revenue                                      42            46      (8.7)  
Expenses                                        3 681         3 304       11.4  
Store costs                                     2 534         2 166       17.0  
Other operating costs                           1 147         1 138        0.8  
Operating profit                                1 408         1 102       27.8  
Investment income                                  35            64     (45.3)  
Finance costs                                      19            64     (70.3)  
Profit before earnings from joint ventures                                      
and associate                                   1 424         1 102       29.2  
Earnings from joint ventures                       56            65     (13.8)  
Earnings from associate                             -             -             
Profit before tax                               1 480         1 167       26.8  
Tax                                               431           384       12.2  
Profit after tax                                1 049           783       34.0  
Other comprehensive income:                                                     
Net fair value adjustments on financial                                         
instruments, after tax                            141          (46)     (>100)  
Exchange differences on translation                                             
of foreign subsidiaries                             3           (6)     (>100)  
Other comprehensive income for                                                  
the period, net of tax                            144          (52)     (>100)  
Total comprehensive income for the period       1 193           731       63.2  
Profit attributable to:                         1 049           783       34.0  
Shareholders of the parent                      1 034           775       33.4  
Non-controlling interest                           15             8       87.5  
Total comprehensive income                                                      
attributable to:                                1 193           731       63.2  
Shareholders of the parent                      1 179           731       61.3  
Non-controlling interest                           14             -             
Reconciliation of headline earnings                                             
Earnings attributable to shareholders                                           
of the parent                                   1 034           775       33.4  
BEE preference dividend paid                       21            11       90.9  
Basic earnings                                  1 013           764       32.6  
Loss on disposal of property, plant                                             
and equipment                                       2             1      100.0  
Impairment of property, plant and equipment         -             -             
Tax impact of adjustments                         (1)             -             
Headline earnings                               1 014           765       32.5  
Headline earnings per share (cents)             135.7         100.8       34.6  
Earnings per share (cents)            2         135.5         100.6       34.7  
Diluted headline earnings per                                                   
share (cents)                                   131.3          96.6       35.9  
Diluted earnings per share (cents)    2         131.2          96.5       36.0  
Number of shares in issue (millions)            745.9         761.7      (2.1)  
Weighted average number of shares                                               
in issue (millions)                             747.4         759.3      (1.6)  
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                                     
                                                              52 weeks          
                                                             to 26 Jun          
                                                                  2011          
                                           Notes                    Rm          
Interest at the beginning                                                       
of the period                                                     3 453         
Movements for the period:                                                       
Issue of shares                                 5                    33         
Shares repurchased                              5                 (339)         
Share repurchase costs                                              (1)         
Distributions to shareholders                                     (923)         
Share-based payments                                                186         
Business acquisitions                                                17         
Total comprehensive income                                                      
for the period                                                    1 667         
Interest at the end of the period                                 4 093         
Distribution per ordinary share (cents)                           143.5         
Distribution cover (based on headline                                           
earnings per share)                                                 1.5         
Distribution per preference share (cents)                                 61.4  
                                                      Share -           Non -   
                                                   holders of     controlling   
                                                   the parent        interest   
                                         Notes             Rm              Rm   
Interest at the beginning                                                       
of the period                                            4 008              85  
Movements for the period:                                                       
Issue of shares                               5              -               -  
Shares repurchased                            5          (614)               -  
Share repurchase costs                                     (2)               -  
Distributions to shareholders                            (719)               -  
Share-based payments                                        52               -  
Business acquisitions                                        -               -  
Total comprehensive income                                                      
for the period                                           1 179              14  
Interest at the end of the period                        3 904              99  
Distribution per ordinary share (cents)                                         
Distribution cover (based on headline                                           
earnings per share)                                                             
Distribution per preference share (cents)                                       
                                                          Total         Total   
                                                       26 weeks      26 weeks   
                                                      to 25 Dec     to 26 Dec   
                                                           2011          2010   
                                                             Rm            Rm   
Interest at the beginning                                                       
of the period                                              4 093         3 453  
Movements for the period:                                                       
Issue of shares                                                -            28  
Shares repurchased                                         (614)          (21)  
Share repurchase costs                                       (2)             -  
Distributions to shareholders                              (719)         (523)  
Share-based payments                                          52            58  
Business acquisitions                                          -             -  
Total comprehensive income                                                      
for the period                                             1 193           731  
Interest at the end of the period                          4 003         3 726  
Distribution per ordinary share (cents)                        -          50.5  
Distribution cover (based on headline earnings                                  
per share)                                                     -           2.0  
Distribution per preference share (cents)                      -          16.8  
CONSOLIDATED STATEMENT OF FINANCIAL POSITION                                    
                                                                           At   
                                                                       26 Jun   
                                                                         2011   
                                                             Notes         Rm   
ASSETS                                                                          
Non-current assets                                                       4 115  
Property, plant and equipment                                     3      2 046  
Investment properties                                                      121  
Intangible assets                                                 3        693  
Investment in associate                                                     46  
Investment in joint ventures                                               578  
Prepaid employment costs                                                    23  
Participation in export partnerships                                        59  
Other loans                                                                 84  
Derivative financial instruments                                             -  
Deferred tax                                                               465  
Current assets                                                           4 950  
Inventories                                                              1 892  
Trade and other receivables                                                733  
Derivative financial instruments                                            10  
Tax                                                                         22  
Cash                                                                     2 293  
Total assets                                                             9 065  
EQUITY AND LIABILITIES                                                          
Capital and reserves                                                     4 093  
Interest of shareholders of the parent                                   4 008  
Non-controlling interest                                                    85  
Non-current liabilities                                                  1 460  
Interest - bearing borrowings                                              514  
Operating lease accrual                                                    455  
Derivative financial instruments                                             -  
Post-retirement medical benefit liability                                  315  
Deferred tax                                                               176  
Current liabilities                                                      3 512  
Trade and other payables                                                 3 148  
Provisions                                                                 269  
Derivative financial instruments                                            78  
Tax                                                                          1  
Interest-bearing borrowings                                                 16  
Total equity and liabilities                                             9 065  
Net asset book value - per share (cents)                                   531  
GROUP ANALYSIS                                                                  
Total assets                                                             9 065  
Woolworths Retail                                                        5 719  
Country Road                                                               986  
Treasury                                                                 1 783  
Woolworths Financial Services                                              577  
Inventories                                                              1 892  
Woolworths Retail                                                        1 547  
Country Road                                                               345  
Approved commitment for capital expenditure                                934  
Woolworths Retail                                                          809  
Country Road                                                               125  
Approved commitment for franchise acquisitions                    9        384  
                                                                At         At   
                                                            25 Dec     26 Dec   
                                                              2011       2010   
                                                  Notes         Rm         Rm   
ASSETS                                                                          
Non-current assets                                            4 333      3 679  
Property, plant and equipment                          3      2 134      2 020  
Investment properties                                           121        121  
Intangible assets                                      3        992        440  
Investment in associate                                          45         39  
Investment in joint ventures                                    580        589  
Prepaid employment costs                                         20         23  
Participation in export partnerships                             55         61  
Other loans                                                      55         85  
Derivative financial instruments                                  1          -  
Deferred tax                                                    330        301  
Current assets                                                4 885      5 073  
Inventories                                                   2 271      1 837  
Trade and other receivables                                     771        812  
Derivative financial instruments                                 67          1  
Tax                                                               1         10  
Cash                                                          1 775      2 413  
Total assets                                                  9 218      8 752  
EQUITY AND LIABILITIES                                                          
Capital and reserves                                          4 003      3 726  
Interest of shareholders of the parent                        3 904      3 669  
Non-controlling interest                                         99         57  
Non-current liabilities                                         919      1 300  
Interest-bearing borrowings                                      24        511  
Operating lease accrual                                         458        461  
Derivative financial instruments                                  -          1  
Post-retirement medical benefit liability                       327        303  
Deferred tax                                                    110         24  
Current liabilities                                           4 296      3 726  
Trade and other payables                                      3 246      3 012  
Provisions                                                      307        248  
Derivative financial instruments                                  7        118  
Tax                                                             228        328  
Interest-bearing borrowings                                     508         20  
Total equity and liabilities                                  9 218      8 752  
Net asset book value-per share (cents)                          523       4 82  
GROUP ANALYSIS                                                                  
Total assets                                                  9 218      8 752  
Woolworths Retail                                             6 571      5 322  
Country Road                                                  1 128      1 038  
Treasury                                                        940      1 804  
Woolworths Financial Services                                   579        588  
Inventories                                                   2 271      1 837  
Woolworths Retail                                             1 932      1 514  
Country Road                                                    339        323  
Approved commitment for capital expenditure                     592        399  
Woolworths Retail                                               488        373  
Country Road                                                    104         26  
Approved commitment for franchise acquisitions         9        122          -  
CONSOLIDATED STATEMENT OF CASH FLOWS                                            
                                                                     52 weeks   
                                                                    to 26 Jun   
                                                                         2011   
                                                          Notes            Rm   
Cash flow from operating activities                                             
Cash inflow from trading                                                 2 848  
Working capital movements                                                  377  
Cash generated by operating activities                                   3 225  
Investment income                                                          123  
Finance costs                                                             (95)  
Tax paid                                                                 (985)  
Cash generated by operations                                             2 268  
Dividends received from associate                                            1  
Dividends received from joint venture                                      125  
Distributions to shareholders                                            (923)  
Net cash inflow from operating activities                                1 471  
Cash flow from investing activities                                             
Net investment in PPE and intangible assets                              (585)  
Acquisition of franchise operations                        4             (207)  
Other                                                                       21  
Net cash outflow from investing activities                               (771)  
Cash flow from financing activities                                             
Shares issued                                                               33  
Shares repurchased                                                       (339)  
Share repurchase costs                                                     (1)  
Finance lease payments                                                    (18)  
Short-term borrowings repaid                                           (1 020)  
Acquisitions-non-controlling interest contribution                          17  
Net cash outflow from financing activities                             (1 328)  
Decrease in cash and cash equivalents                                    (628)  
Cash and cash equivalents at the beginning of the period                 2 917  
Effect of foreign exchange rate changes                                      4  
Cash and cash equivalents at the end of the period                       2 293  
GROUP ANALYSIS                                                                  
Cash inflow from trading                                                 2 848  
Woolworths Retail                                                        2 586  
Country Road                                                               262  
Gross capital expenditure                                                  624  
Woolworths Retail                                                          517  
Country Road                                                               107  
                                                       26 weeks      26 weeks   
                                                      to 25 Dec     to 26 Dec   
                                                           2011          2010   
                                            Notes            Rm            Rm   
Cash flow from operating activities                                             
Cash inflow from trading                                   1 637         1 443  
Working capital movements                                  (129)           223  
Cash generated by operating activities                     1 508         1 666  
Investment income                                             31            64  
Finance costs                                               (19)          (74)  
Tax paid                                                    (61)         (384)  
Cash generated by operations                               1 459         1 272  
Dividends received from associate                              -             1  
Dividends received from joint venture                         55            50  
Distributions to shareholders                              (719)         (523)  
Net cash inflow from operating activities                    795           800  
Cash flow from investing activities                                             
Net investment in PPE and intangible assets                (361)         (303)  
Acquisition of franchise operations              4         (304)             -  
Other                                                         36            18  
Net cash outflow from investing activities                 (629)         (285)  
Cash flow from financing activities                                             
Shares issued                                                  -            28  
Shares repurchased                                         (614)          (21)  
Share repurchase costs                                       (2)             -  
Finance lease payments                                      (11)           (8)  
Short-term borrowings repaid                                   -       (1 000)  
Acquisitions-non-controlling interest                                           
contribution                                                   -             -  
Net cash outflow from financing activities                 (627)       (1 001)  
Decrease in cash and cash equivalents                      (461)         (486)  
Cash and cash equivalents at the beginning                                      
of the period                                              2 293         2 917  
Effect of foreign exchange rate changes                     (57)          (18)  
Cash and cash equivalents at the end of the period         1 775         2 413  
GROUP ANALYSIS                                                                  
Cash inflow from trading                                   1 637         1 443  
Woolworths Retail                                          1 429         1 306  
Country Road                                                 208           137  
Gross capital expenditure                                    383           310  
Woolworths Retail                                            343           264  
Country Road                                                  40            46  
SEGMENTAL ANALYSIS                                                              
                                                             52 weeks           
                                                            to 26 Jun           
                                                                 2011           
                                                                   Rm           
Revenue                                                                         
Turnover                                                        25 582          
Woolworths Retail                                               22 609          
Clothing and General Merchandise                                 8 591          
Food                                                            13 535          
Logistics                                                          483          
Country Road                                                     2 973          
Other revenue and investment income                                259          
Woolworths Retail                                                  103          
Clothing and General Merchandise                                    25          
Food                                                                78          
Country Road                                                        27          
Treasury                                                           129          
Total group                                                     25 841          
Gross profit                                                                    
Woolworths Retail                                                7 134          
Clothing and General Merchandise                                 3 751          
Food                                                             3 298          
Intra - group                                                       85          
Country Road                                                     1 765          
Total group                                                      8 899          
Profit before tax                                                               
Woolworths Retail                                                1 965          
Clothing and General Merchandise                                 1 318          
Food                                                               647          
Country Road                                                       162          
Woolworths Financial Services                                      129          
Treasury                                                            50          
Total group                                                      2 306          
                                            26 weeks      26 weeks              
                                           to 25 Dec     to 26 Dec              
                                                2011          2010          %   
                                                  Rm            Rm     change   
Revenue                                                                         
Turnover                                       14 137        12 687       11.4  
Woolworths Retail                              12 383        11 155       11.0  
Clothing and General Merchandise                4 713         4 282       10.1  
Food                                            7 415         6 635       11.8  
Logistics                                         255           238        7.1  
Country Road                                    1 754         1 532       14.5  
Other revenue and investment income                77           110     (30.0)  
Woolworths Retail                                  38            41      (7.3)  
Clothing and General Merchandise                    5             8     (37.5)  
Food                                               33            33          -  
Country Road                                        5             5          -  
Treasury                                           34            64     (46.9)  
Total group                                    14 214        12 797       11.1  
Gross profit                                                                    
Woolworths Retail                               4 001         3 487       14.7  
Clothing and General Merchandise                2 088         1 839       13.5  
Food                                            1 867         1 606       16.3  
Intra-group                                        46            42        9.5  
Country Road                                    1 046           873       19.8  
Total group                                     5 047         4 360       15.8  
Profit before tax                                                               
Woolworths Retail                               1 289         1 008       27.9  
Clothing and General Merchandise                  873           657       32.9  
Food                                              416           351       18.5  
Country Road                                      117            92       27.2  
Woolworths Financial Services                      56            65     (13.8)  
Treasury                                           18             2       >100  
Total group                                     1 480         1 167       26.8  
NOTES                                                                           
1 Basis of preparation                                                          
The abridged group financial statements comply with IAS 34 - Interim Financial  
Reporting.                                                                      
Accounting policies used in the abridged group financial statements are the     
same as those used to prepare the group annual financial statements, which      
have been prepared in compliance with International Financial Reporting         
Standards (IFRS) and the South African Companies Act (No. 71 of 2008, as        
amended).                                                                       
2 Earnings per share                                                            
The difference between earnings per share and diluted earnings per share is     
due to the impact of unexercised options under the group's share incentive      
schemes.                                                                        
3 Property, plant and equipment and intangible assets                           
During the 26 weeks to 25 December 2011, the group acquired property, plant     
and equipment at a cost of R331m (2010: R221m) and acquired intangible assets   
(including goodwill and reacquired rights) at a cost of R358m (2010: R144m).    
4 Acquisition of franchise operations                                           
The group continues to wind down its South African franchise operations,        
acquiring 25 stores in the current period.                                      
Fair value of assets acquired at the date of acquisition                    Rm  
Property, plant and equipment                                               10  
Reacquired rights                                                          193  
Deferred tax liability                                                    (55)  
Goodwill arising on acquisition                                            113  
Consideration                                                              261  
Accrual - prior period                                                      43  
Cash outflow                                                               304  
The goodwill of R113m is supported by the growth and synergies expected to      
accrue from the acquisitions.                                                   
From the dates of acquisition, these 25 franchise stores have contributed an    
additional R79m of revenue and R41m of profit before tax to the group.          
The directors consider that, on a pro-forma basis, had the acquisition of the   
acquired franchisees been effective from the beginning of the period, the       
revenue of the group for the period would have been R118m higher, and profit    
before tax would have been R62m higher.                                         
5 Issue and repurchase of shares                                                
9 298 259 (2010: 851 827) shares totalling R285m (2010: R21m) were repurchased  
from the market.                                                                
8 836 665 (2010: Nil) shares totalling R329m (2010: Nil) were purchased from    
the market in the current period and allocated to employees on settlement of    
share-based payments.                                                           
In the prior period, 3 500 331 ordinary shares totalling R28m were issued in    
terms of the group's executive incentive schemes.                               
6 Contingent liabilities                                                        
Group companies are party to legal disputes and investigations that have        
arisen in the ordinary course of business. Whilst the outcome of these matters  
cannot readily be foreseen, the directors do not expect them to have any        
material financial effects.                                                     
7 Borrowing facilities                                                          
Unutilised banking facilities amount to R2 607m (2010: R2 463m). There is no    
limit in the Memorandum of Incorporation on the group's authority to raise      
interest-bearing debt.                                                          
8 Related party transactions                                                    
The group entered into related party transactions during the period, the        
substance of which are similar to those explained in the group's 2011           
Integrated Report.                                                              
9 Events subsequent to the reporting date                                       
Agreements to purchase a further 9 franchise stores totalling R122m are         
effective from dates subsequent to this report.                                 
10 Approval of interim financial statements                                     
The interim financial statements were approved by the board of directors on 15  
February 2012.                                                                  
11 Unaudited results                                                            
These results have not been reviewed or audited. These summary financial        
statements have been prepared under the supervision of the group finance        
director, Norman Thomson CA(SA).                                                
visit our investor relations site: www.woolworthsholdings.co.za                 
Date: 16/02/2012 07:05:02 Produced by the JSE SENS Department.                  
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