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Australiaâs Leading retailer, Woolworths Group Limited (ASX:WOW) has released its half-year results for FY 2019. For the half-year period, the company has reported total revenue from continuing operations of $30,704 million which is 2.2% higher than the previous corresponding period (pcp). Further, the company has reported NPAT from continuing operations of $920 million which is 2.1% higher than pcp.
As per the companyâs CEO Brad Banducci, H1 FY19 was a challenging half-year across all of the companyâs businesses. In the second quarter of FY 2019, the company witnessed subdued customer demand and volatile weather. However, the companyâs customer metrics remained strong during the period which reflects Woolworthsâ Customer 1st Team 1st culture and its focus on being âconsistently goodâ.
The companyâs Group sales from continuing operations grew by 2.3% in H1 FY19 as compared to pcp. The companyâs EBIT from continuing operations increased by 1.0% during the half year period.Â
In Australian Food Division, the company witnessed improved sales momentum in the second quarter of FY 2019 following a weaker than expected first quarter which was impacted by the removal of single-use plastic bags and competitor activity. In Australian Food division, the Sales for the half year increased by 2.3% and EBIT increased by 4.0%.
In New Zealand Food division, the company witnessed strong sales growth during the half-year period, although the sales growth slowed in the second quarter of FY 2019. According to the company, December month was the most challenging month of the half-year period as it was impacted by lower market growth. In New Zealand Food division, the EBIT during the half-year period was marginally below the prior year with higher CODB (Cost of Doing Business) due to investment in establishing CountdownX.
During the half year period, the Endeavour Drinksâ sales increased by 1.8% and EBIT decreased by 6.4% with Dan Murphyâs below expectations in a low-growth market, impacted by cooler and wetter weather around key events and the timing of New Yearâs Eve.
While providing the outlook for Australian Food Division, the company informed that it is expecting the market to remain challenging including ongoing input cost pressure. For New Zealand Food division, the company is focused on building on the new brand platform, improving its Fresh and affordable Health offer, innovating the digital experience for customers and realizing the financial benefits of these investments. For Endeavour Drink, the company expects good progress in H2 FY19, but FY19 EBIT is expected to be below FY18.
The board has declared an interim dividend of 45 cents per share, fully franked, with a record date of 1 March 2019 and Payment date of 5 April 2019.
Meanwhile, in the last six months, the share price of the company increased by 2.86% as on 19 February 2019. WOWâs shares traded at $28.710 (-5.091% intraday) with a market capitalization of circa $39.85 billion as on 20 February 2019 (AEST 1:44 PM).
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