National

Woolworths' profits rise and tips more price increases

By AAP Newswire

Aug 23, 2023

A Woolworths Metro Supermarket in Melbourne (file) — Woolworths' full year revenue increased 5.7 per cent to $64.3 billion. -AAP Image

Woolworths has recorded a $1.62 billion full-year profit after tax, up 4.6 per cent from the prior year, a result basically in-line with expectations.

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Revenue increased 5.7 per cent to $64.3 billion for the 52 weeks ended June 25, compared to the 52 weeks prior.

Australian supermarket sales were up 4.7 per cent to $41.4 billion, with ecommerce sales rising 2.9 per cent to $5.1 billion.

Food-price growth began to moderate in the second half, with prices even dropping for meat, fruit and vegetables.

Woolworths expects prices to keep rising in some packaged categories.Â

Big W had a strong first-half, but sales dropped in the second half - even beyond executives' expectations - as consumers cut back on discretionary items, particularly in the fourth quarter.

"The sector became extremely competitive with higher levels of promotions and discounts," said CEO Brad Banducci.

So far those trends have continued in fiscal 2024, with solid growth in Woolworths' food businesses but Big W sales down on the prior year.

Woolworths declared a final dividend of 58 cents per share, up from 53 cents a year ago.

By AAP Newswire

Australian Associated Press