Woolworths shines on big results day
THE boss of supermarket giant Woolworths believes a successful rollout of COVID-19 vaccines could act as a floor to support consumer confidence and keep the economy bubbling along.
Unveiling half-year results on Wednesday, CEO Brad Banducci said shopping habits before the pandemic emerged should return but that trends such as shopping online were likely to stick.
Woolworths posted a 10.6 per cent increase in halfyear sales to $35.845bn as net profit rose 28 per cent to $1.135bn.
Woolworths is pressing ahead with the $10bn demerger of its drinks and hotels business Endeavour Group, with the new company likely to list on the ASX in June unless it is grabbed first by private equity.
Nine Entertainment also reported upbeat results on Wednesday, with CEO Hugh Marks saying the company benefited from a sharp rebound in ad spending.
Nine’s interim net profit increased 70 per cent to $177.7m, helped by a 13 per cent drop in costs. Nine shares rallied 9.7 per cent to $2.93. The ASX200 index closed 0.9 per cent lower at 6777.8 on a day dominated by retail results.
Among them was Mosaic Brands, the retail group that owns Katies and Rivers, which is making money again after closing unprofitable stores. It said sales would keep lifting as its older demographic customer base emerged from COVID-19 hibernation. It warned, however, that more outlets would be shuttered.
Mosaic booked a whopping $170m full-year net loss in August but on Wednesday posted a slim first-half net profit of $13m.
That comes after it received almost $47m in JobKeeper benefits.
Westfield owner the Scentre Group meanwhile plunged to a $3.73bn loss after the pandemic ripped through its portfolio, which was written down by $4.25bn amid a shift away from malls.
The company says retailers are extending leases, in a positive sign for cash flow, and has signalled it is recovering by giving distribution guidance of at least 14c per security for 2021.
Jewellery retailer Michael Hill’s net profit jumped 82 per cent to $38.9m in the December half after a surge in online sales offset store closures, which cost the group more than $20m in sales. Group sales fell 2.9 per cent to $319.9m after the forced closure of some stores due to COVID-19 restrictions.
Medibank also had good news, with the health fund returning to growth Its net profit in the six months to December 31 surged 27.3 per cent to $223.4m.