Woolworths
(ASX:WOW) has slashed its interim dividend by almost 23% to 34cps for 1H FY17. This is lowest interim dividend since 2006.
Australia’s largest supermarket posted a lower profit during the first half due to intense price competition with Coles and Aldi supermarkets.
Over the last year, Woolworths has been reducing margins and selling its non-core assets – such as the sale of 527 service stations to BP . Last year, Woolworths also closed its Masters home improvement chain, and incurred $2.7 billion in write-offs.
Woolworth’s net profit for the first half was down 16.7% to $785.7 million. However, its sales revenue rose 2.6% to $29.1 billion.
The company says it’s expecting further progress in the second half as it looks to restore sustainable growth but adds that there is still “a long way to go”.