Woolworths Raises Annual Profit 4.6%, Sees Cost Pressures Ahead — Update
By Stuart Condie
SYDNEY--Australian supermarket giant Woolworths raised its dividend after a 4.6% rise in annual profit, while warning of the impact of wage increases and energy prices on future earnings.
Woolworths on Wednesday reported a continuing-operations net profit for the 52 weeks through June 25 of 1.62 billion Australian dollars (US$1.04 billion). Revenue rose 5.7% to A$64.29 billion.
Directors declared a final dividend of 58 Australian cents a share, up from 53 Australian cents a year earlier.
Net profit fell 80% on a statutory basis, reflecting the impact of the prior period's demerger of its Endeavour drinks and hospitality business.
Woolworths said that fiscal 2024 costs would show the impact of material wage increases and inflation in energy and transport. Earnings growth for the period should be viewed with that in mind, CEO Brad Banducci said.
Australian food sales were up 6.5% on-year for the first eight weeks of fiscal 2024, Banducci said. New Zealand food sales were up 4.5% over the same period.
Big W department store sales were down by about 6% at the start of fiscal 2024. They rose 8.0% in fiscal 2023, but second-half earnings before interest and tax of A$11 million missed management expectations and fell 64% on year.
"Big W is being impacted by the broader discretionary spending slowdown in Australia," Banducci said.
Write to Stuart Condie at stuart.condie@wsj.com
(END) Dow Jones Newswires
August 22, 2023 19:30 ET (23:30 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
4 New Stocks to Buy With Catalysts for Future Gains
-
Markets Brief: Q2 Earnings Season Begins With the Banks
-
Six Sports Betting and iGaming Stocks Trading at a Discount
-
4 Predictions for Stocks and the Economy for the Second Half of 2024
-
What Broadening Rally? AI Stocks Dominate Again In Q2
-
After Earnings, Is Nike Stock a Buy, a Sell, or Fairly Valued?
-
Worst-Performing Stock ETFs of the Quarter
-
Top-Performing Stock ETFs of the Quarter
-
The 10 Best Dividend Stocks
-
3 Smaller-Company Stocks the Best Fund Managers Are Buying
-
SolarEdge Stock Is Down 74% In 2024. Is It a Buy or a Sell?
-
Industrials: Sector Offers Investment Opportunities as Performance Lags Broader Market
-
Consumer Defensives: Even Amid Macro Pressures, Deals Permeate the Landscape
-
33 Undervalued Stocks
-
Utilities: Can the Stocks Keep the Rally Going?
-
Basic Materials: Following Index Decline, We See Many Long-Term Opportunities