Australian supermarket giant Woolworths Group reported a significant increase in annual profit on Tuesday, driven by value-conscious consumers. The company indicated that the trend of shoppers seeking cheaper goods is expected to continue over the next year amid ongoing household budget pressures. Underlying net profit for the year ended June 28 came in at A$1.6 billion (approximately US$1.15 billion), up from A$1.39 billion the previous year and above market expectations of A$1.55 billion. This surpassed rival Coles' underlying net profit of A$1.26 billion, which was announced on Monday. The final dividend was set at 52 Australian cents per share, up from 45 cents in the prior year. Sales in its key Australian food division rose 4.6% to A$53.85 billion, supported by higher volumes and increased promotional activity.
Annual profit surges on value-seeking shoppers boosting sales, with food division sales up 4.6%.
Woolworths' profit and sales growth surpass Coles, indicating competitive pressure.
