South African retailer Woolworths Holdings Limited (WHL) has reported profit before tax of R6.7bn ($360.38m) in fiscal year (FY) 2023, up 29.5% compared to FY22.

The retailer posted turnover growth of 7% to R85.7bn ($4.60bn) during the year ending 25 June.

Its adjusted diluted headline earnings per share were 508.3cps, up 35.6% compared to FY22.

During the year, Woolworths Fashion, Beauty and Home (FBH) business reported turnover and concession sales growth of 8.9% and 8.3% on a comparable store basis.

The business’ online sales grew by 3.8% in FY23 and contributed 4.3% of South African sales.

FBH’s gross profit margin improved by 90 basis points (bps) to 48.5%, driven by the growth in full-price sales and markdown metrics.

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By GlobalData

Woolworths’ Food business saw turnover and concession sales increase by 8.5% and 6.3% on a comparable store basis. Online sales increased by 28.5% and contributed 3.8% of South African sales.

WHL’s Country Road Group business sales grew by 12.0% and 12.4% in comparable stores during the 52-week period.

Online business sales accounted for 27.1% of total sales in FY23 against 31.6% in FY22.

Its gross profit margin increased by 310bps to 62.6% while its adjusted operating profit increased by 25.6% to A$151.0m ($97.7m).

In December 2022, WHL divested its Australian department store chain David Jones to private equity fund Anchorage Capital Partners.

The company said that the deal unlocked R7.7bn in value for shareholders since 2022 and removed R18bn in liabilities from WHL’s balance sheet.

Woolworths Group CEO Roy Bagattini said: “It has been a transformational year for our Group. I am very pleased with the progress our teams have made in executing against our strategies, delivering a strong set of results and the highest earnings per share in the history of our Group.”