Woolworths' profits surge: 'We're not going to concede an inch to competitors'
Woolworths Holdings has posted its results for the 42 weeks ended 27 June 2021.
The Group recorded a 9.7% rise in turnover to R85.9 billion.
It says sales of properties in Australia were a contributing factor.
Headline earnings per share rose by 212.5% to 374.4 cents per share.
Woolworths says its food business grew both market share and volumes despite the high base set in the prior year driven by stockpiling ahead of the first lockdown.
Bruce Whitfield interviews Roy Bagattini, Group CEO of Woolworths Holdings.
With food still the Group's star performer, is there any concern that at some point those sales will plateau?
We have a remarkable food business... In the industry we have leading margins...Roy Bagattini, Group CEO - Woolworths Holdings
The question's been asked several times about when we'll run out of steam... This is the tenth consecutive year of market share growth... We're gaining share and that's maybe contrary to the other things you hear out there...Roy Bagattini, Group CEO - Woolworths Holdings
We continue to innovate. We've introduced over 2,000 new products into our food operation during the course of last year... Plus, we made a call to begin investing very significantly in price. We realised the opportunity to make some of our product categories more accessible and we're going after that.Roy Bagattini, Group CEO - Woolworths Holdings
What about the competition from retailers like Checkers and Pick n Pay that are stocking more top-end products now?
"If you're the market leader in a particular space you have a target on your back" says Bagattini.
Do the Australian operations remain a weakness in the Group's armour? asks Whitfield.
It's relative, Bagattini says, as Woolworths has fundamentally shifted the game there for over the past year.
We've been able to pay down that debt and now we're sitting with businesses that are actually cash-positive... which has implications for the Group overall.Roy Bagattini, Group CEO - Woolworths Holdings
The Country Road Group is actually a business that represents a significant upside for us and has performed exceptionally well over this last year... as we stabilise David Jones on the other hand...Roy Bagattini, Group CEO - Woolworths Holdings
Listen to the interview with Bagattini on The Money Show:
Source : ewn