Australia’s Woolworths posts flat annual profit
WOOLWORTHS Australia’s largest supermarket chain, reported an annual profit in line with estimates on Wednesday and declared a special dividend, but said it expects customers to remain cautious amid heightened cost-of-living pressures.
Woolworths grapples with declining performance in key divisions amid inflation-induced margin pressures and escalating operational costs, while intense competition has made it hard for the grocer to adapt to evolving consumer trends.
The grocer slashed prices and passed on lower costs to customers to address the rise in competition and tackle cross-shopping trends.
Consequently, inflation in its food businesses and BIG W segment moderated significantly in the second half and item growth slowed, leading to cooling sales momentum.
The grocer logged total group sales of A$67.92 billion (S$60 billion) for the year, compared with A$64.29 billion in fiscal 2023.
Sales momentum in fiscal 2025 has continued to improve across the group, Woolworths said, with sales in its biggest earner, Australian Food, up about 3 per cent in the first eight weeks.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
“Looking ahead, improving customer scores, item growth, and lower inflation provide reason for optimism,” outgoing CEO Brad Banducci said in a statement.
“However, we also know that our customers remain under significant mortgage and rent-related financial stress and anticipate them to remain cautious with the trading environment expected to be challenging for the rest of the financial year.”
The company posted a net profit after tax before significant items of A$1.71 billion (S$1.5 billion) for the year ended June, flat compared to the prior year and largely in line with a Visible Alpha consensus estimate of A$1.72 billion.
SEE ALSO
The Sydney-based company also declared a final dividend of 57 Australian cents per shares, compared with 58 cents a year earlier.
It also declared special dividend of 40 Australian cents per share. REUTERS
Share with us your feedback on BT's products and services
