Woolworths unveils $2.09 billion first-half loss

SHARES in Woolworths have plunged 3.5 per cent after the embattled supermarket giant unveiled a shock total first-half loss of $2.09 billion in the wake of its Masters DIY stores disaster.

A lot on his plate... New Woolies CEO Brad Banducci.

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• JOBS ON CENTRAL COAST IN DOUBT AS DIY CHAIN WOUND UP
• $14 MILLION GHOST STORES CLOSES BEFORE IT OPENS

SHARES in Woolworths have plunged 3.5 per cent after the embattled supermarket giant unveiled a shock total first-half loss of $2.09 billion in the wake of its Masters DIY stores disaster.

Stock slid 76 cents, or 3.5 per cent, to $21.13 after the grocery chain took a $3.25 billion hit from the DIY venture which it recently wound up.

The company, which has concluded its eight-month search for a chief executive with the immediate promotion of Brad Banducci to the role, revealed the huge one-off impairment in its first half results released today.

A lot on his plate... New Woolies CEO Brad Banducci.

The supermarket group has also been struggling with growing competition from new discount players including Aldi.

The writedown of the value of the Masters home improvement chain, which the company is closing down after failing to compete with rival Bunnings, weighed on the group’s results. Woolworths booked an impairment charge worth $3.01 billion after tax.

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“Despite the financial performance, we are making progress in the rebuilding of Woolworths,” the company said.

“We have significantly invested in price, service and customer experience in Australian Supermarkets, appointed a new Group and BIG W CEO and announced our exit of the Home Improvement business.”

DIY disaster... Woolworths wound up Masters after heavy losses

Woolworths saw an average price reduction of 2.1 per cent in food and liquor during the half year, as the company pours millions of dollars into investing in lower prices in a bid to attract shoppers.

Woolworths comparable sales in its supermarkets division fell 1 per cent over the first half of the year, following a 0.6 per cent decline in the last quarter, as the company continued to lose momentum against its rival chain Coles, owned by Wesfarmers. Financial results from Coles earlier this week showed a 4.3 per cent increase in like-for-like sales in the six months to December

Woolworths will pay an interim dividend of 44c per share, fully franked, 35 per cent lower than the prior half-yearly payout of 67c.

Originally published as Woolworths unveils $2.09 billion first-half loss