Woolworths exceeded market expectations today with a reported 11.4 percent rise in first-half net profit for this financial year.
In the half year (27 weeks) ending 3rd of January, Woolworths net profit was $1.09 billion, up 11.4 per cent compared to the same period last year.
Share holders will be paid interim dividend of 53 cents per share, which is an increase of 5 cents per share from last years interim dividend.
“This is a strong result given the economic challenges of cycling the prior year stimulus package and the significant decline in food inflation,” Chief Executive Officer Michael Luscombe said in the statement. “Prospects appear positive and improving for 2010 onwards.”
The company also announced a $400 million share buyback scheme to raise as as a part of their ongoing capital management strategy.
Woolworths expansion continues
Earlier this week Woolworths announced the initial 12 locations for their yet-unnamed ‘big box’ home improvement competitor to Bunnings Warehouse.
Don Stallings, CEO of the Woolworths and Lowe’s home improvement joint venture, said the approvals were vital in ensuring the new joint venture achieved scale in operations quickly to secure its future.
“Building a new destination home improvement offer from scratch is a challenging business venture, especially in a retail sector with just one existing dominant player,” Starlings said.
“Our plans require our business to get up to speed as quickly as possible to ensure we can deliver a new and competitive offer to the consumer.”
Victorian Planning Minister Justin Madden said the state government would also fast-track planning approval for five new sites to be developed by German discount chain Aldi, at North Balwyn, Rye, Drysdale, Highton and Geelong West.