Roger Corbett, CEO of Australia’s largest supermarket group Woolworths, is expected to report consistently solid trading activity tomorrow, when the company informs shareholders of its progress at an annual meeting.
Market watchers have reiterated their expectation of strong growth at Woollies, despite increased sector competition.
One analyst, who is expecting full-year profit of A$487m (US$244m), explained to the Australian Financial Review: “I think it will be ‘steady as she goes’ […] the market has pretty much got the numbers right for this company and has had for a little while.”
Competition in the grocery sector has been fierce, as the other supermarket major Coles Myer reinvigorated its Kmart subsidiary and new players entered the east coast market through the acquisition of outlets once belonging to the beleaguered Franklins chain.
Nevertheless, Woolworths defied the volatile trading situation by posting a 10.3% increase in sales during the first three months of the financial year, to A$5.2bn. More specifically, sales from its supermarket division grow by 11.5%. And analysts have revealed that trading conditions during October and November had improved.