Woolworths Group’s earnings have risen 3.4 per cent to $3.2 billion, but its profit has dropped due to impairments on its New Zealand supermarkets.
In the company’s FY24 results, it revealed that it had posted a net profit drop of 0.6 per cent to $1.7 billion, but accounting for the $1.5 billion New Zealand impairment, that number fell to $108 million.
The company’s full-year sales were more positive with a 5.6 per cent increase to $67.92 billion and when normalised for the 53 weeks in the trading year, against 52 weeks in 2023, sales rose 3.7 per cent.
Brad Banducci, CEO of Woolworths Group, said after a strong first half, they worked hard in the second half of the year to address changing customer expectations following the drop in customer scores in Q3 and a loss of sales momentum.
“Pleasingly, customer scores and sales momentum improved in Q4, and this has continued into F25.”
Similar to Coles earlier this week, Woolworths recorded strong eCommerce performance driven by the Australian Food segment with Banducci saying customers are increasingly using its digital tools and eCommerce services to find value.
“WooliesX normalised sales grew by 19.8 per cent contributing around half of Australian Food’s sales growth, and WooliesX DAP5 and EBIT increased by 94 per cent contributing around three quarters of Australian Food EBIT growth.”
Investors will receive a fully franked final dividend of 57 cents per share, down 1.7 per cent on last year, but will also receive a special, fully franked $0.40 dividend from the $498 million sale of its stake in Endeavour Group.
To stay up to date on the latest industry headlines, sign up to the C&I e-newsletter.