The nation’s largest food retailer Woolworths increased first half sales 8 per cent to $31.9 billion from its continuing operations, but COVID-19 costs and stock shortages on shelves due to supply chain disruption crunched earnings from its supermarkets which fell 7.6 per cent.
“There are lots cost pressure across our supply chain,” he said. “Actually one of our biggest cost pressures right now is in construction, construction of new stores or our new DCs,” he told meida. A 26 per cent cut in the interim dividend to 39¢ a share - payable on April 13 - largely reflected the exclusion of 13¢ related to Endeavour in the prior half.
Woolworths is seeking to grow its marketing leader position in the Direct to Boost pickup service as part of its overall online shopping offer. More than half its stores offer the service, and it’s a popular with people looking to save on the delivery cost. However, it is not as profitable for Woolworths as an in-store sale.last December that the group’s interim earnings in Australian food retailing would drop between 7 per cent and 9 per cent, while Coles’ food earnings came in just 0.
Mr Banducci called out $34 million in COVID-19 related costs so far this new half, while Coles said it spent $30 million in January.
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Source: FinancialReview - 🏆 2. / 90 Read more »