$27bn is good, but better to come: Woolies

Woolworths’ half year sales soar to $27.2 billion, with the company predicting a strong full year result

January 28, 2010

Retail giant Woolworths’ half year sales have soared to $27.2 billion, with the company predicting a strong full year result.

Woolworths’ sales increased by 4.2 percent compared to last year, with the majority of revenue coming from food and liquor sales which were up 6.8 percent to $18 billion.

The company’s consumer electronics division also grew by 4.3 percent, softening a 9.5 percent drop in petrol sales on the back of a fall in the average fuel price during the first half of the financial year.

Based on the figures, Woolworths expects profit after tax to jump by up to 11 percent.

Woolworths CEO Michael Luscombe says the Rudd Government’s stimulus package designed to increase consumer helped underpin consumer confidence and safeguard retail jobs.

Woolworths anticipates significant factors will play a role on profit margins by the end of the year.

"The second half of the year will be impacted by low price inflation and the cycling of the government stimulus packages," a statement from the company says.

"Discretionary spending levels will continue to be influenced by macro-economic factors such as interest rates, petrol prices, confidence around employment and consumer attitudes to spending."

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