Woolworths Ltd, Australia’s largest grocer, said it remains open to a range of opportunities for growth and expansion.
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Speaking at the group’s AGM today (26 November), chief executive Michael Luscombe (pictured) said the retailer’s approach to acquisitions remains “careful and considered”.
“Woolworths remains open to a range of opportunities to add shareholder value,” Luscombe said. “As always, our approach to acquisitions is careful and considered and we have an excellent track record of successful integration of new businesses whilst remaining focused on our core operations.”
He added: “Strong companies such as Woolworths must be encouraged and allowed to continue to invest in jobs, growth and infrastructure. Our success has a net positive effect on the rest of the economy and on the fortunes of many hundreds of communities across Australia and many millions of individuals.”
Woolworths last month retained a cautious outlook for the full year, despite posting “solid” first-quarter sales growth.
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By GlobalDataTotal sales in the 14 weeks to 4 October rose by 4.2% to A$13.37bn. Excluding petrol, sales jumped 7.4%.
Luscombe today reiterated the company’s full-year guidance. Looking ahead he said Woolworths expects sales growth to fall in the upper single-digits, while EBIT is expected to continue to grow faster than sales in 2010. Net profit after tax is expected to grow in the range of 8% to 11%.
“This time last year I addressed our shareholders in Melbourne and commented on the need for confidence in the health of Australia’s economy as we entered uncertain financial times, Luscombe said.
“I talked about the need for companies to avoid short-term termism, to put jobs first and to continue to invest in longer term growth. One year on and it is very clear that Australia’s economy has survived and is considerably healthier than many of our peers.”
