Australia’s Foodland supermarket revealed a 29.6% jump in second quarter sales pushing its share price up 3% to a record A$14.21 (US$7.24).
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The increase is above forecasts and has prompted analysts to upgrade their full-year profit predictions for Foodland toA$85m.
The company says that sales were strong over the Christmas period in both of its major markets, New Zealand and Western Australia. Foodland’s managing director Trevor Coates also said that the economies of both countries looked strong going into the second half.
Despite the record share price analysts believe there is still room for improvement as the stock has a price to earnings multiple of 14, compared with its rivals Woolworths and Coles Myer which are both rated at over 20.
Foodland also announced that in the five months to the end of December it grew earnings by 19%.
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By GlobalData
