Leading Australian retailer Woolworths posted a 17.4% increase in Q4 sales today [Monday] and hiked its earnings outlook for the 2001-2002 financial year.
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Sales in Q3, which ended 31 March, rose to A$5.69bn (US$3.0bn), in line with market forecasts. The supermarket operator’s gung-ho stance on cost-cutting and the acquisition of a number of Franklins supermarkets boosted sales.
The core supermarket division, accounting for around 84% of total sales, returned Q3 sales up 15.9% in the quarter to A$4.6bn, while year to date sales were 15.7% higher than last year at A$15.54bn, on the back of both organic and acquisitive growth. Petrol sales soared 65.9% to A$287m in the quarter.
“Earnings have been upticked a little bit for the end of the year, so we’ll see some upgrades on the basis of those results,” said David Spry, research director at brokerage F.W. Holst.
Year to date sales from continuing operations grew 15.9% to A$18.44bn, Woolworths said in a statement. “We’re seeing good, steady results across all our divisions, with no inflationary pressures,” chief executive Roger Corbett said by telephone.
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By GlobalDataWoolworths raised its full-year earnings per share forecast for fiscal 2002 from a previous band of 47 to 49.5 cents, reported Reuters. “If the trading patterns of the first three quarters carry on and the present business and economic climate continues, we would anticipate earnings for the full financial year to be in the range of 48 to 50 cents, a 20 to 25% increase, after two cents per share of goodwill amortisation,” Corbett said.
The latest earnings forecast indicates full-year net profit of A$513.6m to A$642m, from A$428m a year ago.
