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

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news