Woolworths announces 8.8% profit increase

Written on the 30th of January 2009

Woolworths Chief Executive Officer and Managing Director, Michael Luscombe, today announced half year sales growth of 8.8% from continuing operations.

“Woolworths has continued to reinvest in all its businesses to improve our stores, create jobs, add services, deliver value, and create an even better shopping experience for our customers. This is a pleasing result in a more challenging economic environment and I am confident that we are well positioned to meet future challenges.” he said.

Australian Food and Liquor sales for the half year were $16.9 billion, an increase of 9.0%. Sales for the second quarter were $8.6 billion, an increase of 9.8% over last year.

Comparable store sales in Food and Liquor for the second quarter increased 7.1% (1st quarter 6.0%, half year 6.6%). Inflation in the second quarter increased to 4.8% from 3.2% in quarter one and reflects the deflation in produce ceasing.

The continued positive momentum in the business re-affirms the strength of the company’s operations, the depth of talent of its people and its ability to deliver consistent quality results.
Naum Onikul has been an outstanding leader of our business. The transition to Greg Foran as Director of Food, Liquor and Petrol has been seamless.

Key strategic initiatives focussed on our customers, including the accelerated rollout of our 2010c format, our Everyday Rewards Program and continued price re-investment have all
contributed to this sales result. These initiatives continue to be well received by our customers.

We were pleased with the Christmas trading period and the high standard of service delivered to our customers, which resulted in increasing numbers of customers shopping in our stores.

Fifteen new supermarkets were opened during the half year taking the total to 792. We also opened nine new Dan Murphy stores taking the total to 97.