Woolworths annual profit rises 9% on strength in Australian Food division


Adds full-year details, background

Aug 29 (Reuters) - Woolworths Ltd WOW.AX reported a 9% rise in annual underlying profit on Thursday, helped by improved performance at its Australian Food division.

Australia's largest supermarket operator said net profit, excluding one-off items, rose to A$1.75 billion ($1.18 billion) in the year ended June 30, from A$1.61 billion a year earlier.

Analysts on average had expected a profit of A$1.74 billion, according to IBES data from Refinitiv.

Riding on stronger sales in the second half, comparable sales in the Australian Food segment rose 3.1% in the year, while the company's total revenue from continuing operations climbed 5.3% to A$59.98 billion.

The company's results were in contrast to rival Coles Group COL.AX, which last week reported a drop in its annual profit. Coles had also warned that Woolworths' "Ooshies" collectibles programme could eat into its sales in the mid-term.

The two companies have been engaged in heavy discounting and turned to promotional programmes to prop up sales, offering collectable plastic figures with purchases above a certain value.

Net profit after significant items fell 7% for Woolworths, as the company took an impairment charge on the carrying value of its discount department store chain Big W.

Woolworths declared a final dividend of 57 Australian cents per share, compared with 50 Australian cents last year.

($1 = 1.4806 Australian dollars)

(Reporting by Aby Jose Koilparambil and Ambar Warrick in Bengaluru; Editing by Shounak Dasgupta and Maju Samuel)

((Ambar.Warrick@thomsonreuters.com; +91-80-6749-6625; Reuters Messaging: ambar.warrick.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.