Woolworths Group (ASX:WOW) Records AUD 18Bn Sales in Q1FY25, Cost-of-living Pressure to Impact Further Performance

4 min read | January 02, 2025 04:14 PM AEDT | By Team Kalkine Media

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Woolworths Group (ASX:WOW) Records AUD 18Bn Sales in Q1FY25, Cost-of-living Pressure to Impact Further Performance — Image source: © Darianipot |Megapixl.com

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Highlights

The company recorded total sales of AUD 18,004 million in 1QFY25, up 4.5% YoY.

In 1QFY25, WOW completed 11 supermarkets and two metro renewals.

AustralianSuper has the highest stake in the company with a shareholding of 6.02%

For nearly a century, Woolworths Group Limited (ASX:WOW) has been operating retail chains, including supermarkets under the Woolworths banner. The company has a market cap of AUD 37.24 billion.

Financial performance in 1QFY25

In the first quarter of the financial year 2025 (1QFY25), the company recorded total sales of AUD 18,004 million, reflecting an increase of 4.5% over the previous period, and eCommerce sales jumped 23.5% YoY to AUD 1,952 million. The period saw an increase in revenue despite an annual average price fall of 0.3%.

During the recent quarter, the company completed 11 supermarket and two metro renewals with zero net movement in the store network. As of 30 September 2024, total network included 1,006 Woolworths Supermarkets, 737 Direct to Boot locations, 105 Metro, 2 eStores and 7 CFCs.

Recent business update

Through an ASX update dated 9 December 2024, the company announced the resolution of industrial action at its four Distribution Centres (DCs) in New South Wales and Victoria, following the endorsement of new enterprise agreements offering wage increases of nearly 11% over three years. Operations have started across all DCs.

Supply chain disruptions resulted in loss of around AUD 140 million in sales and an AUD 50-60 million EBIT impact. Further impacts are expected to Q2 earnings with updates anticipated in February 2025.

Business outlook

In 1HFY25, Woolworths expects EBIT for its Australian Food division to range between AUD 1,480 million and AUD 1,530 million, a decline from AUD 1,595 million in 1HFY24. Lower-margin sales and increased eCommerce growth are influencing projections. Throughout FY25, cost-of-living pressure is expected to impact value-focused customer behaviour.

Top 10 shareholders of WOW

The top 10 shareholders of WOW have around 26.33% shareholding in the company, with AustralianSuper holding the maximum shareholding of 6.02%, followed by The Vanguard Group, Inc. with 4.99% shareholding.

Share performance of WOW

WOW shares closed 0.07% lower at AUD 30.47 apiece on 2 December 2024. Over the past year, WOW’s share price has dropped by almost 17.72%, and in three months, it has declined by almost 7.59%.

52-week high of WOW is AUD 37.17, recorded on 2 January 2024, and 52-week low is AUD 29.19, recorded on 13 November 2024.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 02 January 2025. The reference data in this report has been partly sourced from EODHD/Others.

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This article has been prepared by Kalkine Media, echoed on the website kalkinemedia.com/au and associated pages, based on the information obtained and collated from the subscription reports prepared by Kalkine Pty. Ltd. [ABN 34 154 808 312; AFSL no. 425376] on Kalkine.com.au (and associated pages). The principal purpose of the content is to provide factual information only for educational purposes. None of the content in this article, including any news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video is or is intended to be, advisory in nature. The content does not contain or imply any recommendation or opinion intended to influence your financial decisions, including but not limited to, in respect of any particular security, transaction, or investment strategy, and must not be relied upon by you as such. The content is provided without any express or implied warranties of any kind. Kalkine Media, and its related bodies corporate, agents, and employees (Kalkine Group) cannot and do not warrant the accuracy, completeness, timeliness, merchantability, or fitness for a particular purpose of the content or the website, and to the extent permitted by law, Kalkine Group hereby disclaims any and all such express or implied warranties. Kalkine Group shall NOT be held liable for any investment or trading losses you may incur by using the information shared on our website.

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