Woolworths boss Amanda Bardwell nonetheless anticipating | Australian Markets
Woolworths boss Amanda Bardwell has welcomed the Reserve Financial institution’s determination to cut rates of interest final week however reckons consumers will proceed to hunt worth this yr.
Chatting with media after unveiling decrease earnings within the first half of the financial yr, Ms Bardwell stated whereas the grocery store was “absolutely pleased” to see charges lower for purchasers, it expects value-seeking procuring behaviour to proceed.
“Value-seeking behaviour from customers looks like shopping more of our specials . . . looking for our own-brand products, and opening price points and continuing to compare prices, and therefore increasing numbers of customers choosing to cross shop across our competitors,” she stated.
Ms Bardwell stated comfort was additionally prime of thoughts for consumers.
“(We’re) seeing customers really value our online shopping services . . . whether that’s our on-demand service, so if you place an order online, have it delivered within two hours,” she stated.
“That’s increased double what we saw this time last year.
“And so convenience is also incredibly important to customers as increasing numbers of Australians go back to the office, we’re seeing people out and about more as well.”
The grocery store giant on Wednesday stated whereas group gross sales elevated 3.7 per cent $35.9 billion on the prior yr, pre-tax earnings fell 14.2 per cent to $1.45b.
This was largely pushed by a 12.8 per cent decline in Australian grocery business, which in November and December was impacted by a 17-day strike by Woolworths warehouse employees that left cabinets naked throughout Victoria, the ACT and NSW.
The estimated affect to food gross sales from the commercial motion is about $240m, up from the initial estimate of $140m.
However the grocery store chain swung back to to black, reporting a internet revenue of $739m within the 27 weeks to January 5, from a $781m loss a yr in the past.
“Excluding the one-off impact of industrial action and incremental supply chain commissioning and dual-running costs, Australian Food EBIT would have declined by approximately 5 per cent due to price and promotional investment and ongoing inflation in wage and other costs,” the company stated.
Ms Bardwell stated the workforce had labored extremely arduous to get well from the provision chain disruptions brought on by industrial motion.
“In Victoria, sales have not yet fully recovered but availability and customer metrics are returning to pre-disruption levels with ongoing efforts to regain customers,” she stated.
Ms Bardwell has additionally flagged job losses in a bid to cut its value base by $400m.
“We have also begun to simplify our above store support ofice which is expected to lead to annualised gross cost savings of approximately $400m by the end of calendar 2025,” she stated.
“This is in addition to our ongoing store and supply chain productivity program which provides some offset to annual inflation.”
Earlier this month, a company spokesman informed The Nightly it might make some office-based roles redundant as half of the grocery store’s broader restructure to cut prices and meet prospects’ altering expectations.
It isn’t but identified how many roles can be misplaced, however Woolworths on the time stated the redundancies wouldn’t be “significant” and wouldn’t have an effect on store-based employees.
Woolworths has cut its interim dividend by 17 per cent to 39c per share, reflecting decrease earnings.
Extra to come back.
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