- Woolworths Group Limited (ASX:WOW) reported a 12.3 per cent year-on-year increase in group sales for the 14-week period to 4 October 2020.
- The Australian Food segment witnessed 12.9 per cent growth against the pcp on demand boost from COVID-related lockdowns.
- Majority of the global business segments witnessed an increase in sales, except for hotels which experienced a decline of 33.2 per cent against pcp.
- WOW opened six new stores, including five Supermarkets and one Metro during the quarter.
Woolworths Group Limited (ASX:WOW), Australia’s largest supermarket chain with 995 stores across the continent, reported a 12.3 per cent jump in sales to $17,853 million for the 14-week period ended 4 October 2020 (Q1FY21).
The supermarket giant reported the sales figures for Australian Food at $12,033 million for the period, up by 12.9 per cent against the previous corresponding period (pcp). Majority of the global business segments witnessed an increase in sales, except for the hotels segment which registered a decline of 33.2 per cent against pcp.
The Australian Food Segment
Woolworths Supermarkets witnessed sales growth of ~ 13.42 per cent during the period, leading to total growth of 12.9 per cent in the Australian Food segment.
- Likewise, e-commerce sales doubled to $961 million, extending its support to the overall growth.
Australian Food’s VOC NPS (Store and Online) surged by a unit point against pcp at 50; however, remained three points down against the previous quarter.
WOW suggested that sales were primarily supported by COVID-driven higher in-home consumption as well as the success of Disney+Ooshies. Sales in Victoria marked an increase of ~ 20 per cent, owing to the extended and more stringent restrictions in place.
Excluding Victoria; the overall Australian Food segment marked the sales growth of 10.6 per cent.
Average price during the period increased by 1.2 per cent against the pcp, which remained low against the growth of 2.4 per cent in the previous quarter despite higher demand and unfavourable growing conditions for some vegetable prices. Excluding tobacco, average prices during the period slipped slightly by 0.2 per cent.
Meanwhile, sales for Metro Food Stores declined by 5.1 per cent to $235 million.
During the quarter, WOW opened six new stores including five Supermarkets and one Metro, and temporarily converted five Supermarkets to fulfil the surge in e-commerce demand across Victoria.
At the end of the quarter, total store fleet reached 1,057 with 992 Supermarkets and 65 Metro Food Stores.
The stock recently surged from the level of $36.020 (intraday low on 21 September 2020) to high of $39.660 (Intraday high on 19 October 2020); however, currently it seems to be circulating around the same level and is consolidating.
WOW traded at $38.640 on 4 November (11:57 PM AEDT), flat as compared to its previous close on ASX.