Woolworths (ASX:WOW) names new chairman; how are shares reacting?

July 26, 2022 01:23 PM AEST | By Ashish

Woolworths (ASX:WOW) names new chairman; how are shares reacting? — Image source: © Nilsversemann | Megapixl.com

Highlights

Woolworths announced Scott Perkins as its new chairman.

Cairns has served as chairman of Woolworths for the past seven years.

Perkins holds a vast amount of experience in corporate sector.

Woolworths Group Ltd (ASX:WOW) on Monday announced Scott Perkins as its new chairman. Perkins, who is currently the chairman of Origin Energy Ltd (ASX:ORG) would replace Gordon Cairns following Woolworth’s annual general meeting (AGM) scheduled on 26 October 2022.

Cairns has been associated with Australia’s largest grocery retailer for the past seven years in capacity of its chairman. It was in AGM 2021 that Cairns had expressed that he would not see out his full term and retire before the next AGM.

Perkins, who is currently a non-executive director at Woolworths Group, has been serving as chairman of Origin Energy since 2020. He is also a board member at Brambles Ltd (ASX:BXB) since 2015.

Perkins holds a vast amount of experience in corporate sector. He has had served several senior executive leadership positions at Deutsche Bank, where he worked in capacity as managing director and head of corporate finance for Australia and New Zealand. He has also served as chief executive officer (CEO) of Deutsche Bank New Zealand.

How are Woolworths’ shares trading?

Following this update, shares of Woolworths Group were trading at AU$37, down 0.45 points or 1.21% at 11:43 AM (AEST). The share price has fallen nearly 4% on a year-to-date (YTD) basis. In the past twelve months, the stock has declined nearly 6%. But the share price has gained over 2.5% in the past month.

“We are fortunate to have someone of Scott’s ability and experience, respected by his colleagues and management, to provide the oversight required to allow the business to reach its full potential,” he added.

Woolworths’ earnings

The first half of FY22 wasn’t smooth for Woolworths. The supermarket giant reported a 6.55% fall in its after-tax profit in the first half compared to the prior corresponding period on account of rise in costs due to coronavirus.

However, the company reported strong earnings in FY21. The sales of the company rose nearly 6% to around AU$67.3 billion in the financial year 2021.

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