Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Woolworths NZ boosts annual profit 29% on increased sales

Woolworths NZ boosts annual profit 29% on increased sales at fatter margins

By Paul McBeth

Jan. 8 (BusinessDesk) - Woolworths New Zealand, which accounts for about 40 percent of the country's supermarket sales, boosted its annual profit 29 percent as it squeezed more out of increasing revenue.

Net profit rose to $128.9 million in the 12 months ended June 24, from $99.8 million a year earlier, according to financial statements lodged with the Companies Office. Revenue grew 3.5 percent to $5.57 billion, a faster pace than the 2.4 percent increase in cost of sales to $4.28 billion.

Woolworths' revenue gains came in a period when local consumer price inflation shrank 0.2 percent for grocery foods in the June quarter from a year earlier, and subsequently widened to a 2.4 percent contraction in the three months ended Sept. 30, according to government figures.

Including an unrealised $28.1 million write-down in the fair value of its 10 percent stake in budget retailer Warehouse Group, total comprehensive income was $100.9 million. Since the balance date, Warehouse shares have rallied 20 percent, recently trading at $3.01.

Woolworths finished rebranding its local stores to Countdown in 2012, opening seven new stores during the year and reopening its quake-damaged Christchurch supermarket. The company received $3.4 million from earthquake-related insurance recoveries in the year.

The supermarket chain is looking at setting up pharmacies within its stores, with planned trials at two new Countdowns in Wellington and Palmerston North, and is also looking at expanding its health and beauty product range across its network.

Woolworths increased its spending on employees to $546.6 million in the year from $519.2 million a year earlier. That includes salaries and wages, some $5.4 million in KiwiSaver contributions, termination benefits, fringe benefits and leave entitlements.

Since the balance date, Australian parent Woolworths spun out a new retail investment trust, Shopping Centres Australasia Property Group, which will own a portfolio of shopping centres and supermarkets currently owned by the group. As part of the deal, some $218 million of property held by the New Zealand unit will be sold and leased back, the statements said.

Shares in Woolworths slipped 0.1 percent to A$29.51 in trading on the ASX yesterday, while SCA Property gained 1 percent to A$1.52.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news