Woolworths, a leading Australian grocer, recently reported a significant half-year loss along with the retirement announcement of its longtime chief executive.
Financial Overview
The net loss for the approximately six months through December totaled 781 million Australian dollars (US$511 million), primarily due to one-time writedowns related to its New Zealand business and investments in Endeavour. This is in stark contrast to the A$845 million net profit reported a year ago. However, when excluding these exceptional items, the net profit still managed to grow by 2.5% to A$929 million.
Revenue and Dividend
Despite the challenging financial results, Woolworths saw revenue increase by 4.4% in the half to A$34.63 billion, slightly exceeding market expectations. The interim dividend was set at 47 Australian cents per share, reflecting a 2.2% increase and aligning with the profit growth before one-time items.
Performance Breakdown
The positive performance was largely driven by the main Australian food unit, which reported a sales growth of 5.4% during the half. In contrast, the discount chain Big W experienced a sales decline of 4.1%.
CEO Transition
Brad Banducci, who served as the CEO for eight and a half years out of his thirteen-year tenure with the company, will be retiring in September. The experienced Amanda Bardwell, known for her leadership in Woolworths’ digital arm WooliesX, is set to replace him.
For more information, please visit Woolworths’ official website.
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