Woolworths has reported a significant recovery in sales for the first half of the financial year, closing the gap with rival Coles and maintaining its full-year guidance. The nation’s second-largest grocery chain operator saw total sales growth of 3.4 per cent to $37.14 billion, driven by a stronger performance in its core supermarkets. While slightly below market expectations of 3.6 per cent growth, the result reflects improved trading momentum in the second quarter. Woolworths operates over 1,100 supermarkets and also provides e-commerce, Milkrun, and complementary services like insurance and phone plans.
The improved performance in the second quarter was attributed to lower prices, an expanded fresh food offering, increased convenience options, and strong execution during the critical Christmas trading period. Sales in its supermarkets grew 3.2 per cent in the second quarter, compared with 2.1 per cent in the first three months of the year. The Australian Food division, encompassing Woolworths’ supermarkets and related services, posted a near 10 per cent rise to $1.5 billion for the half.
Net profit reached $859 million, up 16.4 per cent. However, after accounting for significant items of $485 million related to prior staff underpayment issues, net profit was $374 million. Chief executive Amanda Bardwell said the group is making progress on the strategy outlined in August, with investments in value, fresh produce, on-demand convenience, and in-store execution.
Due to the improved trading momentum, Woolworths anticipates full-year sales at the Australian Food division to be at the upper end of the mid-to-high single-digit earnings range provided in August. The company has declared an interim dividend of 45¢ per share.
