Woolworths has reported an 11.4 per cent rise in first half profit, surprising analysts and showing significant growth over results in the preceding six months.
The Australian retailer’s CEO Michael Luscombe said the results were a signal Woolworths was peeling customers away from the competition, reported The Land.
Woolworths’ sales figures were 40 per cent higher and its profit rate was twice as high as rival Coles, said Mr Luscombe.
Profit rose to A$1.096bn for the first half of the fiscal year, and sales increased 6 per cent to A$27.2bn.
Woolworth’s supermarket chain led the growth, and the company’s struggling New Zealand arm realised a 24.3 per cent growth in earnings for the first half from internal improvements and cost-cutting.
“This is a strong result given the economic challenges of cycling the prior year stimulus package and the significant decline in food inflation,” said Mr Luscombe.
“Despite this, we have strongly grown profits while driving 3,500 prices in our Australian supermarkets business lower than a year ago.”
Rival supermarket chain Coles announced EBIT growth last week for the first half, hitting A$486m. Like for like sales rose 6 per cent.
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