Woolworths HY Profit Plunges On Absence Of One-time Gain; Hikes Interim Dividend
Woolworths Group Limited (WOW.AX), an Australian chain of supermarkets and grocery stores, reported that its net profit after tax attributable to equity holders of the parent entity after significant items for the 27 weeks ended 1 January 2023 dropped to A$845 million from A$7.06 billion in the prior year, which included gains from the demerger of Endeavour Group. Earnings per basic share dropped to 67.0 cents from 571.0 cents in the previous year.
Net profit after tax attributable to equity holders of the parent entity before significant items increased by 14.0% to A$907 million from the prior year.
The company declared an interim dividend of 46 cents per share, an increase of 17.9% compared to the prior year reflecting the solid earnings growth in the half.
Woolworths Group CEO, Brad Banducci, said, “Our first half result benefitted from a focus on improving our customer shopping experience, restoring our operating rhythm, the non-recurrence of material COVID costs in the prior year and strong seasonal trading…”
Group sales for the period increased 4.0% year-over-year to A$33.2 billion. Sales growth in Australian B2B and BIG W was particularly strong as both businesses cycled a COVID-impacted period in the prior year. Sales momentum in Australian and New Zealand Food improved in Q2 as the impact of lockdowns on sales in the prior year eased over the half.
Group eCommerce sales declined by 9.5% and penetration declined by 139 bps to 10.3% as more customers across all businesses returned to shopping in store. Average weekly traffic to Group digital platforms increased by 9.5% as customers continued to engage with the Group’s digital platforms through a focus on the connected customer.
Looking ahead, the company said that sales momentum has continued to be solid in the half to date and the operating rhythm of its business continues to improve. However, EBIT growth in the second-half will be below first-half as the company cycles a more normal second half.
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