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Woolworths' H1 profit soars 37.6pc to $969m

Petrina Berry  |  23 Feb 2018Text size  Decrease  Increase  |  
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BRISBANE - [AAP] Woolworths' (ASX: WOW) first-half profit jumped 37.6 per cent to $969 million after comparable food sales at its Australian supermarkets rose 4.9 per cent.

The retail giant on Friday increased its interim dividend by more than 25 per cent to a fully franked 43 cents after pre-tax earnings for the 27 weeks to December 31 soared by 9.9 per cent.

Total group revenue rose 3.8 per cent to $30 billion driven by strong sales growth from its supermarkets, Dan Murphy's, BWS and the group's hotels.

Comparable food sales rose 4.9 per cent compared to the same period a year ago with like-for-like sales growth particularly strong at 5.1 per cent in the second quarter.

The comparable food sales growth far outpaced that of rival Coles, which on Wednesday recorded comparable food and liquor sales growth of 0.9 per cent for the half and 1.4 per cent for the second quarter.

Chief executive Brad Banducci said food sales growth may moderate in the second half but added that its labouring discount department store Big W will lift performance in the period.

Mr Banducci, who led the supermarkets division before becoming chief executive, said the growth was an early sign of the group's transformation.

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"The emphasis on transforming our business will continue in the second half and into the 2019 financial year," Mr Banducci said in a statement to the ASX on Friday.

"Our goal is to deliver a consistently good experience for our customers and team and leverage end-to-end process redesign and technology to improve our underlying productivity."

WOOLIES' CHANGES PAY DIVIDENDS IN H1

* Profit up 37.6pc to $969m

* Revenue up 3.8pc to $30bn

* Fully franked interim dividend up nine cents to 43 cents

 

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© 2021 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

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