Australian retail giant Woolworths has reported a 26% rise in full-year net profit to A$1.63bn (US$1.39bn), on revenues up 11% at A$47bn.
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Group EBIT rose by 19.8% to A$2.53bn.
The company’s Australian supermarkets division saw sales rise by 10.9% to A$36.1bn in the year to 29 June, with earnings before interest and tax rising by 18.8% to A$2bn.
The company opened 30 new supermarkets during the year ahead of its targeted range of 15 to 25 stores. Total trading area for the Australian Food & Liquor operations grew by 5.2%, also in excess of the targeted range of 3.0% a year, the company stated.
Woolworths’ New Zealand supermarkets saw a 9.1% increase in EBIT to A$169.2m. In local currency terms, sales increased by 5.8% to NZ$4.9bn for the year. Comparable-store sales growth for the year was 6.4%.
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By GlobalData“This has been a rewarding year for our team with our business performing well overall. The delivery of quality results on a consistent basis reflects the ongoing implementation of our strategy,” said CEO Michael Luscombe. “This is a testimony to our team who have worked hard to execute our strategies and build a solid base for sustainable profitable growth into the future.”
Luscombe continued: “We have continued to refine our brand proposition with significant investment in price, merchandise range and quality during the year. This investment continues to deliver gains in market share. We continue to offer great value and choice to our customers whilst ensuring our businesses operate efficiently so we can continue to maintain low prices.”
However, looking ahead, Woolworths said it was forecasting sales growth “in the upper single digits” this year, with net profit expected to rise by between 9% and 12%. The company cited factors, such as interest rates, petrol price volatility, inflation and consumer confidence as reasons for the slower growth in the coming year.
Woolworths will pay a dividend of $0.48 on 3 October, which will bring its full-year dividend to A$0.92.
