Woolworths has released its full year results for the period ended 30 June 2024 (F24), recording higher sales but lower earnings.
The retailer’s sales increased 5.6% (normalised: 3.7%) to $67.9 billion, while its net profit plummeted 93.3% to $108 million. Woolworths notes that it incurred significant items of $1.6 billion related to the previously disclosed New Zealand Food impairment and mark-to-market loss on Endeavour Group disclosed at H1.
Across the retailer’s Australian food division, total sales increased 5.6% to $50.7 billion with normalised growth of 3.7%.
Supermarkets
Woolworths’ supermarkets sales in F24 were $42.4 billion, up a normalised 1.3% (2.5% excluding tobacco) compared to the prior year.
Strong customer demand for e-commerce services continued throughout the year with normalised sales growth of 20.2%.
Metro normalised sales increased by 5.7% supported by the opening of seven new neighbourhood stores and “improved customer mobility” benefitting on the go stores.
Prices
Average prices in Q4 decreased by 0.6% compared to the prior year, a further moderation from Q3 (down 0.2%).
While fruit and vegetables deflation eased in Q4 due to cycling improved supply, Woolworths says prices remained below the prior year largely driven by lower fruit prices.
Meat prices also continued to decline with average prices 6.4% below Q4 in the prior year. The retailer says this reflects lower livestock prices passed on to customers.
Moderating deflation in fruit and vegetables and meat was offset somewhat by lower inflation in long life categories and deflation in everyday needs.
Stores
In F24, 16 new stores (including three Metros) were opened, and 49 renewals were completed with five net new stores and 19 renewals in Q4.
At the end of the year, the total fleet comprised 1006 Woolworths supermarkets, 105 Metros, 727 Direct to Boot locations, seven CFCs and two eStores.
24 new Mini Woolies stores were opened during the year, with 66 locations now operating across Australia.
Looking ahead
Woolworths Group CEO Brad Banducci says sales momentum in F25 has continued to improve across the Group in line with improving customer scores.
“In Australian Food, sales for the first eight weeks of F25 have increased by approximately 3% driven by item growth and modest inflation with eCom continuing to be a key contributor,” he says.
“We have strong end-to-end productivity plans in place, which are important to delivery in F25, given elevated wage inflation and mix pressure on our cost base. We remain focused on growing our customers’ shopping baskets but expect cost-of-living pressures to persist with crossshopping and trading down continuing.”
Addressing his departure, Mr Banducci says: “It has been a privilege to be the CEO of Woolworths Group and to work with our amazing team to serve our customers. I am confident in the outlook for the Group under the collective leadership of incoming CEO, Amanda Bardwell and our Group Executive Team, as we look forward to the next stage of the Group’s journey of creating better experiences together for a better tomorr
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