AUSTRALIA: New Zealand sales growth boosts Foodland H1
Perth-based supermarket giant Foodland Associated has more than doubled its H1 profit over the last year, with help from record sales contributions from its New Zealand grocer Progressive Enterprises and department store chain Farmers.
Foodland posted a profit of A$47.3m (US$24.8m) for the six months to the end of January, up from A$21.6m year on year.
In New Zealand, total sales accounted for more than half of Foodland's total sales revenue, reaching A$1.2bn.
Foodland's MD Trevor Coates said: "This is the best half-year contribution Progressive has made to the group result."
Sales increased by 20% at the business, which owns the Countdown, Foodtown and 3 Guys chains, to reach A$748.6m. Earnings increased 37% to A$26.9m.
Sales at Farmers meanwhile increased 12.9% in the H1 to A$302m. EBITA rose nearly 30% to A$19.5m. Farmers CEO Nick Lowe was encouraged by the management changes and brand repositioning at the chain. Quoted in The Dominion, he warned however that there is "a lot more work to do yet".
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