Food momentum propels Woolworths successful Q3
Food sales continue to help turnaround the Woolworths Group, which announced its third quarter results for the 2017 financial year this week.
Woolworths reported strong sales momentum across the quarter, with Australian food sales up 5.1 per cent on the prior corresponding period in 2016.
Chief Executive Officer of the Woolworths Group, Brad Banducci, described the food sales result as a highlight of the quarter.
“However, the second half of the 2017 financial year will reflect the financial impact of higher investment in key areas, cost price increases (particularly in meat and produce) and our response to ongoing competition and promotional intensity,” Banducci signalled.
Despite the success in food, the Woolworths Group is still struggling with its Big W department chain, which is likely to lose AUD$115 – $135 million before interest and tax in the second half of the 2017 financial year.
Banducci attributed the loss to investment in turning the business around.
“Big W is a work in progress and its turnaround will be a multi-year journey,” he said.
Petrol sales benefit from average fuel selling price increase
Petrol sales for the quarter increased by 14 per cent on the prior year. Petrol volumes declined by (2.1) per cent on a comparable basis. Easter adjusted comparable sales increased by 11.9 per cent and Easter adjusted comparable volumed dropped by (2.5 per cent).
Woolworths said its petrol sales benefitted from an increase in the average fuel selling price compared to the prior year.
Good Easter trading for Dan Murphy and BWS
Woolworths’ liquor business increased sales increased by 2.3 per cent to AUD $1.9 billion compared to the prior year, with comparable sales increasing by 0.8 per cent. Easter adjusted total sales increased by 3.9 per cent with Easter adjusted comparable sales increasing by 2.2 per cent.
Woolworths said despite subdued market growth in the quarter, its BWS and Dan Murphy stores delivered positive Easter adjusted comparable growth in the quarter.
- Woolworthspredicts massive 2017 Easter trade
- Woolworthsfaces possible class action from shareholders
- Woolworthsbounces back with help from supermarket food
- Coles sticks to pricing strategy, but slow progress on Coles Express and Liquor
Some News South Wales hospitals will soon have soft drinks removed from all vending machines.
Blackmores and Bega Cheese have reported early success with a business partnership selling infant fo...
United States based food company, McCormick, has posted increased sales results after acquiring Aust...
Both the New South Wales and South Australian Departments of Primary Industries (DPI) are urging pri...
Fast food chicken chain, Red Rooster, is expanding into more urban areas with a new-look brand and s...
More Australians are purchasing their Easter chocolates online according to new research released by...
Ready-made THR1VE meals are now available at Woolworths Metro stores.
Sara Lee has launched a new individual portion dessert crumble range to cater to smaller household s...