Australian retail giant Woolworths has disclosed its financial performance for the first half of the fiscal year, revealing a substantial 49.4% decline in net profit to $374 million. This significant downturn primarily stems from a $485 million expenditure allocated to remediating underpaid salaried employees, following a Federal Court ruling issued last September.
Despite the profit contraction, the supermarket chain demonstrated robust operational health with group earnings surging 14.4% to $1.66 billion. Profit before accounting for significant items showed impressive growth, climbing 16.4% to $859 million. The company’s Australian operations recorded sales growth of 3.6%, reaching $27.63 billion for the six-month period ending December, while earnings from these stores increased by 9.9% to $1.51 billion.
Chief Executive Officer Amanda Bardwell characterized the supermarket sector as “highly competitive” while maintaining an optimistic outlook about the company’s trajectory. She emphasized that customers remain intensely value-conscious, frequently shopping across multiple retailers to maximize their purchasing power.
“Our strategic focus remains on delivering continuous value to our customers, rebuilding trust within the community, sustaining sales momentum, and advancing our key priorities to benefit customers, team members, and shareholders alike,” Bardwell stated in her ASX announcement.
In a move reflecting confidence in its financial position, Woolworths declared an increased interim dividend of 45 cents per share, up from the previous 39 cents, scheduled for payment on April 2.