This article is from the Australian Property Journal archive
PANIC buying shoppers boosted Woolworths’ full year sales, but one off costs cut operating profits by more than 20%.
Earnings were impacted by significant items of $591 million that included remediation costs for workers that will bring total costs of about $500 million. Other costs related to its New South Wales supply chain transformation, and transformations costs at Endeavour Group.
Total sales increased 8.1% to $63.675 billion, while inline sales jumped 41.8% to $3.523 billion. Group EBIT dipped 0.4% to $3.219 billion.
Group net profit after tax fell 1.2% to $1.602 billion and operating NPAT dropped 21.8% to $1.165 billion.
Total sales in its Australian food division increased 8.3% and EBIT by 6.3%. EBIT growth was impacted by the materially higher costs of operating in the COVID environment, including to additional staff hours, costs associated with cleaning, security and personal protective equipment, incremental supply chain costs to meet increased demand and the additional staff payments.
Woolworths supermarkets completed 69 renewals, and opened 12 net new supermarkets.
The Woolworths Food Company and Metro Food Store results were mixed, while the WooliesX business was impacted by capacity constraints at the peak of the COVID pantry-loading.
Endeavour retail sales increased dramatically from late March, led by Dan Murphy’s. Full year EBIT increased 5.7% but second half growth was lower than due to higher operating costs and some negative mix impacts.
Its hotels division was impacted by venue closures during the pandemic, with declining by 51%.
Discount department store chain Big W posted EBIT of $39 million, with growth increasing from March. Online sales increased by 181% in the final quarter to 8.4% of total sales.
Proceeds from the sale of property, plant and equipment, assets held for sale, and businesses and investments was $295 million, a decrease of 84.2% mainly as a result of the sale of the petrol business to EG Group in 2019. Payments was $2.149 billion, 7.8% above the prior year due to new stores and increased property development activity.
A fully franked final dividend of 48 cents per security was declared, bringing full-year dividend to 94 cps, down 7.8%.
