Trading Day – Woolworths declares big dividend increase despite earnings slump

Woolworths declares a big increase in dividend despite earnings per share slumping 11%, with a final dividend of R1.49 declared. The company experienced improved performance in the second half.

Cashbuild reports a 29% decrease in earnings per share due to civil unrest and a significant decrease in dividends. 

Here is the biggest news of the day.

• Woolworths declares significantly increased dividends despite earnings slump and relatively flat revenue. The company sees improved performance in the second half. Earning per share (EPS) was down 11% to R3.87. Revenue grew 1.7% to R80.1 billion. Woolworths attributes this to the extended Australian lockdowns and the end of their JobKeeper allowances. They saw improved performance in the second half, with revenue growing by 4.9%. The group ended with a strong balance sheet and a net cash position of R229 million. The company declared a final dividend of R1.49, bringing the total dividend for the year to R2.30 per share, almost 2.5 times last year’s dividend.
• Cashbuild reports a decrease in earnings and significantly decreases dividends. Revenue declined 12% to R11.1 billion, while earnings per share (EPS) fell 29% to R20.95. The group saw a slight decrease in their gross profit margin to 26.3%. Operating expenses were kept under control and also saw a 13% decrease. Cashbuild declared a final dividend of R6.77 per share, compared to R22.11 last year. 36 of the group’s stores were impacted by the civil unrest in July, of which 28 have since been reopened. The group has received insurance payments of R224 million for asset claims and half of a R100 million business interruption claim. Management expects trading conditions to remain challenging.
• Discovery expects a massive increase in earnings. The group released a trading statement, expecting earnings per share to increase by roughly 70% to around R8.17 on strong operational performance. The company’s annual results are due on 7 September.
• Motus reports a huge increase in earnings. Revenue was up 5% to R92 billion, while earnings per share (EPS) jumped 65% to R19.02. The company increased its total dividend by 71% to R7.10, of which R2.75 was already paid as an interim dividend, and R4.35 will be paid as a final dividend.
• Super Group has repurchased 6.7% of the company’s shares for R741.5 million. Just over 25 million shares were repurchased between May and June and again after the closed period ended on 30 August. The average purchase price was R29.63 per share. Following cancelled shares, the group now holds 12.6 million treasury shares. This represents 3.5% of the shares issued. The group holds the authority to repurchase nearly 49.3 million more shares.
• Capitec declares a dividend of R3.43 on preference shares.
• DRA Global turns to a loss and officially confirms Michael Sucher as CFO. Sucher has been acting in the role since May. Half-year group revenue was down 16% from 2021 to AU $ 477 million. Earnings per share (EPS) turned from a profit of $ 0.23 to a loss of $0.36. No interim dividend was declared, and the company concluded its share buy-back program.
• Bitcoin briefly dips below the $20 000 mark for the second time in 2 days.