Friday, January 21, 2022

Woolworths posts profit rise due to increased sales during covid

Woolworths says increased spending on groceries and at-home entertainment during the coronavirus pandemic has boosted its bottom line, allowing it to increase its interim dividend payout to shareholders.

The supermarket and retailing giant posted a net profit after tax for the first half of 2021 financial year of $1.135bn, a 28 per cent jump on the same period last year.

Woolworths chief executive Brad Banducci said the first half of the current financial year was still impacted by COVID-19 and prompted a continuation of the spending shift towards essential goods and services.

“The first half … continued to be impacted by COVID, with elevated sales and higher costs as we worked to maintain a COVIDSafe environment for our customers and team,” Mr Banducci said.

“While we have all been living in this uncertain environment now for 12 months, ongoing localised outbreaks remind us that we need to remain both vigilant and agile.”

MUST READ  NSW asks people to get booster dose for extra protection against Omicron

Elevated sales in core businesses such as supermarkets, drinks and BigW were able to offset the higher incurred costs of the pandemic and the major slump in trading within its hotels division.

Sales at Woolworths Metro stores over the period were lower as a result of less foot traffic in CBD locations, declining 6.7 per cent to $456m.

Mr Banducci said the company had made no decision on axing any CBD sites but was monitoring Metro store performance.

“It is an ongoing question for us,” he said. “We have unfortunately had to (already) mothball a number of our Metro stores.”

Group earnings before tax and interest rose 10.5 per cent over the period to $2.09bn.

Total revenue rose 10.6 per cent to $38.85bn, with the company noting stronger supermarket sales and at-home consumption of alcohol and entertainment, as a result of the pandemic, had prompted a rise in turnover.

MUST READ  Warning of heavy rain in coming days across Australian mainland
MUST READ  New emergency service flood boats launched, mock rescue drill held

“ (BigW) Sales increased in all destination areas and were buoyed by seasonal sales events such as Halloween, Click Frenzy, Big Sale (Black Friday) and Christmas,” Mr Banducci said.

Mr Banducci also noted BigW digital activity over the period had surpassed in-store foot traffic for the first time.

Woolworths declared an interim dividend of 53 cents per share, with approximately $671m being returned to shareholders. It is a 15.2 per cent jump on last year’s dividend.

Woolworths chair Gordon Cairns said the group was on track for its liquor business Endeavour Drinks to be spun out by June this year.

“We had previously indicated that we were targeting calendar 2021 for a potential separation of Endeavour Group. Our plans are progressing well, with June the most likely date,” he said.

Latest news

NSW asks people to get booster dose for extra protection against Omicron

Millions more people in NSW are now eligible for a COVID-19 booster vaccination after NSW Health brought forward the interval between doses by a...

Taskforce submits report on improving rehoming of dogs, cats in Victoria

With many Victorians welcoming a pet into their family over the festive season and demand for rehoming services high, the Andrews Labor Government is...

IVF procedures to resume amidst Covid pandemic

Following advice from the Chief Health Officer, in vitro fertilisation (IVF) procedures suspended as part of the temporary changes to protect our hospitals will...

139 students achieve top results in HSC 2021 results

The students who have obtained first place in a 2021 Higher School Certificate course will be acknowledged today for their extraordinary academic achievement.  Premier Dominic...

Related news

NSW asks people to get booster dose for extra protection against Omicron

Millions more people in NSW are now eligible for a COVID-19 booster vaccination after NSW Health brought forward the interval between doses by a...
MUST READ  Parramatta postpones Summer Sessions concert series due to Covid

Taskforce submits report on improving rehoming of dogs, cats in Victoria

With many Victorians welcoming a pet into their family over the festive season and demand for rehoming services high, the Andrews Labor Government is...

IVF procedures to resume amidst Covid pandemic

Following advice from the Chief Health Officer, in vitro fertilisation (IVF) procedures suspended as part of the temporary changes to protect our hospitals will...

139 students achieve top results in HSC 2021 results

The students who have obtained first place in a 2021 Higher School Certificate course will be acknowledged today for their extraordinary academic achievement.  Premier Dominic...

Free tickets availabe for premier’s gala concert at NSW Seniors Festival

Christine Anu, Shannon Noll and Phil Burton from Human Nature will lead the line-up for the highly anticipated Premier's Gala Concerts during this year's...

76,000 students in HSC class of 2021 celebrate results

The wait is over for 76,000 students who have today received their Higher School Certificate results. Minister for Education Sarah Mitchell said this is a...

Shah Rukh Khan returns to social media with Insta post to promote LG rollable TV

Bollywood superstar Shah Rukh Khan has returned to social media with a bang. The actor, who’s been missing since his son Aryn Khan’s arrest in...

Death of Charlise Mutten the 9-yr-old girl found dead in NSW, mourned in hometown Queensland

Hundreds gathered in Tweed Heads to mourn the death of nine-year-old girl Charlise Mutten, who was found dead after being reported missing in the Blue Mountains...