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

 


Woolworths' NZ supermarkets lift annual earnings 4.2%

Woolworths' NZ supermarkets lift annual earnings 4.2% in 'subdued' conditions

By Paul McBeth

Aug. 29 (BusinessDesk) - Australian supermarket chain Woolworths lifted annual earnings from its New Zealand Countdown stores 4.2 percent as it widened margins in what it called "subdued" trading conditions.

Pre-tax earnings before one-off items rose to $309.8 million in the 52 weeks ended June 29 from $302.7 million in the 53-week period in 2013, the Sydney-based company said in a statement. Sales rose 1.6 percent to $5.74 billion from a comparable 52-week period, while gross margin widened 37 basis points to 23.67 percent.

"Countdown supermarkets delivered a pleasing result despite the subdued New Zealand grocery market conditions," Woolworths chief executive Grant O'Brien said. "The transformation of this business is well underway with its focus on delivery enhanced value to customers, most notably via the 'price lockdown' campaign which has resonated strongly with customers."

Government figures this month showed retail spending at grocery stores and supermarkets rose 1.4 percent to $17.04 billion in the 12 months ended June 30 from a year earlier. Consumer prices for grocery food rose 1 percent in the three months ended June 30 from a year earlier.

Woolworths said the small sales increase reflected subdued market and price deflation across several key categories. Still, it managed to widen margins through better buying and promotions, and changes in its sales mix.

"We have continued to improve our competitiveness in the market and have lowered prices on everyday product lines to deliver increased value to our customers," it said.

The New Zealand unit made a bigger contribution to the group due to the strong kiwi dollar, and lifted earnings 17 percent to A$271.4 million. Group earnings before interest, tax and significant items rose 3.3 percent to A$3.78 billion, while net profit advanced 8.5 percent to A$2.45 billion. Sales rose 5.9 percent to A$60.8 billion.

The ASX-listed shares of Woolworths fell 1.2 percent to A$36.52, and have gained 9.2 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news