Shares in Woolworths Ltd
(ASX:WOW) have soared, following news that the country’s largest supermarket chain has delivered a 10.1 per cent increase in net profit to $2.02 billion.
The result comes at the higher end of prior guidance, of between 8-11 per cent profit growth.
An off-market share buyback to return $700 million to shareholders has also been announced, taking this year’s capital returns to over $1 billion.
For the 52 weeks to 27 June, Woolies posted a 4.8 per cent rise in sales to $51.69 billion, while earnings before interest and tax rose 9.5 per cent to $3.08 billion.
Managing Director Michael Luscombe says the company’s financial position has enabled it to steer through the GFC to produce a good overall result.
Woolworth’s currently operates 823 supermarkets in Australia and 152 in New Zealand and says it has slashed prices to counter competition from rivals such as Wesfarmers Ltd (ASX:WES) owned Coles supermarkets.
A fully franked final dividend of 62 cents has been declared, taking the full year dividend to $1.15.
Woolworths reported a profit of $1.84 billion for the year to 30 June 2009.
