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WOOLWORTHS HOLDINGS LIMITED - Trading statement for the 52 weeks ended 28 June 2020

Release Date: 14/08/2020 07:05
Code(s): WHL WHL02 WHL03 WHL01     PDF:  
Wrap Text
Trading statement for the 52 weeks ended 28 June 2020

Woolworths Holdings Limited
(Incorporated in the Republic of South Africa)
Registration number 1929/001986/06
LEI: 37890095421E07184E97
Share code: WHL
Share ISIN: ZAE000063863
Bond code: WHLI
(‘WHL’ or ‘the Group’)


Further to WHL’s trading update which was published on the Stock Exchange News Service (‘SENS’)
on 24 July 2020, we wish to provide guidance on the Group’s expected results for the 52 weeks ended
28 June 2020.

The prior year had 53 trading weeks, and therefore to facilitate comparison against the 52-week
current year, financial information for the prior year has been presented below on a 52-week basis,
constituting pro forma information in terms of the JSE Limited Listings Requirements.

Shareholders are advised that earnings per share (‘EPS’), headline earnings per share (‘HEPS’) and
adjusted diluted HEPS for the year ended 28 June 2020 (‘current year’) are affected by the adoption of
IFRS 16 on a modified retrospective approach, with no restatement of the reported comparative
52-week pro forma prior year results (‘pro forma prior year’), and the 53 week reporting period for the
year ended 30 June 2019 (‘prior year’).

As outlined in the recent trading update, COVID-19 had a significant impact on the performance of the
Group in the second half of the financial year, and is expected to continue to do so for at least the
remainder of the calendar year, given the fluid and challenging environment. This necessitated an
assessment of the carrying values of assets, including the right-of-use assets relating to our store fleet
arising from the implementation of IFRS 16. Consequently, the carrying value of certain store assets
has been impaired, which in turn will negatively impact reported EPS. This impact is adjusted in
calculating HEPS and adjusted diluted HEPS for the current year.

In addition, due to the economic and trading uncertainty caused by COVID-19, and the resulting
impact this may have on reliably forecasting the timing of future taxable earnings, the Group has
elected not to recognise deferred tax assets arising from assessed losses in relation to certain Group
entities. This will result in an increased Group effective tax rate, thereby further impacting EPS and
HEPS. The impact thereof has been adjusted in calculating the adjusted diluted HEPS ranges referred
to below.

Including the impact of IFRS 16 in the current year, EPS, HEPS and adjusted diluted HEPS for the
current year over the prior year (as reported under IAS 17) are expected to be within the ranges
reflected in the table below:
                                        June 2019           June 2020            June 2020
                                         reported            expected             expected
                                         53 weeks               range                range
                                          (cents)                 (%)              (cents)
EPS                                        -113.4               >100%         50.0 to 70.0
HEPS                                        342.9    -60.0% to -70.0%       102.9 to 137.2
Adjusted diluted HEPS                       368.7    -50.0% to -60.0%       147.5 to 184.4

Excluding the impact of IFRS 16 in both the current and pro forma prior years, EPS, HEPS and
adjusted diluted HEPS for the current year versus the comparable pro forma prior year are expected
to be within the ranges reflected in the table below:

                                        June 2019           June 2020            June 2020
                                        Pro forma            expected             expected
                                         52 weeks               range                range
                                          (cents)                 (%)              (cents)
EPS                                        -126.0               >100%         75.0 to 95.0
HEPS                                        330.4    -60.0% to -70.0%        99.1 to 132.2
Adjusted diluted HEPS                       356.3    -40.0% to -50.0%       178.2 to 213.8

The pro forma information, which is the responsibility of the Group's directors, has been prepared for
illustrative purposes only, and may not fairly present the Group’s financial position, changes in equity,
cash flows or results of operations

The information contained in this announcement, including estimated financial information and pro
forma financial information relating to the prior year, has not been reviewed or reported on by the
Group’s external auditors.

The Group’s year-end financial results for the 52 weeks ended 28 June 2020 will be released on
SENS on or about 17 September 2020.

Group Finance Director:
Head of Investor Relations:

Cape Town
14 August 2020

Rand Merchant Bank (A division of FirstRand Bank Limited)


Date: 14-08-2020 07:05:00
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