Woolworths Ltd has posted an increase in first-half profits, which rose 11.4% thanks to sales gains and improved supply chain efficiency.
Australia’s largest supermarket group revealed today (26 February) that net profit increased to A$1.1bn (US$978.3m) for the six months ended 3 January, up from A$983.3m last year.
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Sales, excluding fuel, climbed 6% to A$27.2bn.
Woolworths said that its margins benefited from increased private label sales and supply chain efficiencies.
“The work we have done and investment we have made over the past 10 years, which we continue to do, in improving our systems and streamlining our back-end processes, means we can deliver these benefits in a sustainable manner over the longer term,” chief executive Michael Luscombe said.
However, Woolworths remained cautious in its outlook for the remainder of the year, and reiterated concerns that spending in the second half will be dampened by consumer concerns over employment, interest rates and fuel prices.
The company reiterated net profit guidance of 8%-11% growth for the full year.
The supermarket chain also announced that it would buyback 1.23bn shares, which, at current market prices, could return around A$400m to investors.
Click here for the full release from Woolworths, or check back later for just-food’s coverage of the company’s analyst presentation.
