Woolworths announces $13.6 billion in sales, but warns of uncertain times ahead
By Brad Gardner | April 18, 2011
Supermarket giant Woolworths has pulled in $13.6 billion in sales for the third quarter, but has warned of uncertain trading conditions ahead.
Sales for the company increased 5.1 percent on the back of food and liquor products contributing $9.2 billion. The third quarter result represents a $654 million increase based on the same period last year.
“The market continues to remain competitive with a less confident consumer who is spending less whilst having a greater propensity to save,” Woolworths says in a statement.
“This combined with the uncertainty around the level of inflation going forward, the risks of future interest rate rises, and a continuing strong dollar provides a platform for a potentially subdued trading environment particularly in the discretionary sectors.”
Woolworths is also preparing to outlay significant funds to pay for the costs of the Australian floods and the New Zealand earthquake.
“While an estimate has been made for these costs in our profit guidance the final amount has not yet been determined,” it says.
Woolworths is anticipating a net profit of between 5 percent and 8 percent at the end of the 2011 financial year.