Woolworths sales $1bn a week
Woolworths Limited (WOW) had more than $1 billion a week go through its tills, racking up $27.2 billion in sales for the 27 weeks to 3 January, 6% higher, excluding petrol, than the previous corresponding period. The retailer was upbeat about the remainder of the financial year, with sales expected to grow in the upper single digit range and EBIT rising even faster.
”We also expect net profit after tax for FY10 will grow in the range of 8% to 11%,” the company said.
Woolworths said the result for the full year would be affected low inflation and the effect of macro-economic factors like interest rates and consumer confidence.
Turning to the current results, including petrol, Woolworths said sales had increased 4.2%, reflecting a 9.5% decline in petrol receipts to $2.8 billion and lower prices at the bowser.
CEO and managing director, Michael Luscombe said the government’s stimulus package played a role in the result.
“Our Supermarkets achieved solid volume and market share growth whilst experiencing lower levels of inflation in Australia and New Zealand, and the cycling of the anniversary of the Australian Government stimulus payments,” Mr Luscombe said.
“Due to our customer focus, we were very well positioned and therefore received a clear benefit from the stimulus package in the prior financial year.”
Food and liquor sales for the company rose 6.8% to $18.1 billion. The result was impacted by low inflation in the December quarter.
”Inflation during December was 0.4% this year compared to 5.3% in December last year,” the company said.
Across the company’s portfolio, Big W sales rose 2.3% in the half.
Consumer electronics sales grew 5.9% over the half, although just 0.2% in the December quarter.
Dick Smith stores outperformed Tandy and Powerhouse stores, with sales rising 12.2% for the quarter.
At 1028 AEDT Woolworths shares were down 64c to $26.84.
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