Wooloworths lifts full year net profit 56pc to $2.7bn

Woolworths has posted a 56.1 per cent rise in full-year net profit thanks to robust supermarket sales.

Picture: Bloomberg

Woolworths has posted a 56.1 per cent rise in full-year net profit to $2.693 billion as robust sales from its flagship Australian supermarkets arm countered a drop in profitability for its liquor retail business and a loss of $85 million from its still-struggling general merchandise chain Big W.

The retail giant’s full-year results showed full-year sales rose 5.3 per cent to $59.98 billion while profit from continuing operations fell 7 per cent to $1.49 billion.

In the supermarket wars, it seems that Woolworths has grabbed back the edge from arch rival Coles after being beaten by its competitor for a decade. Sales at Woolworths supermarkets were up 5.3 per cent to $39.56 billion for the year, with earnings 5.7 per cent better at $1.857 billion.

But there remains some problem divisions for Woolworths chief executive Brad Banducci. Endeavour Drinks, which owns Dan Murphy’s and other liquor chains is being primed for sale by Woolworths. The division saw sales rise 5 per cent to $8.65 billion but its earnings went backwards, down 8.2 per cent to $474 million.

Woolworths’ loss-making Big W chain recorded another loss for the year, with EBIT loss of $85 million although that was less than the loss of $110 million Big W recorded in 2018. Sales at Big W rose 6.5 per cent to $3.79 billion.

More