Woolworth’s AGM reveals that EBIT is growing faster than sales at 22.6 per cent

By Martin Vedris

SYDNEY: Woolworths profits and sales continues to rise with the company’s chairman addressing shareholders at the company’s annual general meeting today with the news that the company’s key strategies are producing dividends.

“Woolworths continues to break its own records, most notably in terms of net profit, which this year increased by 27.5 per cent to $1.294 billion,” said Woolworths chairman James Strong.

“Underpinning the headline profit was a sales increase of 12.6 per cent to $42 billion, earnings before interest and tax was up 22.6 per cent to $2.1 billion and an increase in EBIT margins from 4.56 per cent to 4.97 per cent.”

Strong attributed the success to some key business strategies.

“Across every area of the business, from operations to HR to logistics to IT, the team continues to exceed all expectations and does so in an increasingly competitive retail environment. Their performance can be attributed to the fact that Woolworths has maintained a strong focus on two key areas: to create efficiencies and reduce costs and to achieve healthy growth both internally and via acquisitions.”

The company is also focusing on environmental policies. Rouse Hill in north-west Sydney is the company’s first ‘green store’ designed to environmentally sustainable standards, with the company stating that all new Woolworths group stores are to be built according to green principles. The company also stated that it would introduce a green star rating for supermarkets.

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