Woolworths Plans NZ$1.6 Billion Write-Down of its New Zealand Unit As Business Slumps
By Mike Cherney
SYDNEY--Australian grocer Woolworths said it would recognize a large write-down of its New Zealand food business in its upcoming half-year result, but that its main Australian food unit has been performing well.
Woolworths said it would recognize a non-cash impairment of 1.6 billion New Zealand dollars (US$980 million), noting that half-year earnings in New Zealand are expected to be 42% below the prior year. The write-down is required because of a weaker medium-term market outlook, and time is needed for a transformation plan for the unit to reach full potential, the grocer said.
However, Woolworths said that because its main Australian business has remained solid, it expects growth in company-wide earnings before interest and tax--or Ebit--to be in the range of 2.8% to 3.8% before significant items for the half year. Ebit before significant items is expected in the range of 1.682 billion Australian dollars (US$1.11 billion) to A$1.699 billion.
The grocer also said it would recognize a A$209 million loss tied to its investment in drinks and hotel company Endeavour because of an accounting change.
Woolworths will release its full half-year result on Feb. 21.
Write to Mike Cherney at mike.cherney@wsj.com
(END) Dow Jones Newswires
January 28, 2024 17:14 ET (22:14 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Q4 Stock Market Outlook: Where We See Opportunities for Investors
-
Markets Brief: Non-Farm Payrolls in the Spotlight Again
-
6 Top-Performing Large-Growth Funds
-
What’s the Difference Between the CPI and PCE Indexes?
-
10 Top-Performing Dividend Stocks of Q3 2024
-
33 Undervalued Stocks
-
Communication Services: Cable’s Broadband Dominance Isn’t as Strong as It Once Was
-
Technology: Strength Continues, With Software Presenting the Best Buying Opportunities
-
Best- and Worst-Performing Stocks of Q3 2024
-
Top Stocks to Own From the Best Fund Managers
-
2 Cheap Stocks Top Managers Have Been Buying
-
The 10 Best Companies to Invest in Now