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

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news