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Woolworths Lifts Underlying Profit as Back‑Pay Provision Halves Reported Earnings

Investors sent the stock higher after a stronger food performance.

Overview

  • Woolworths reported underlying NPAT of A$859 million for the 27 weeks to January 4, up 16.4% and ahead of Visible Alpha’s A$813.5 million consensus.
  • Headline profit fell by nearly 50% after a A$485 million repayment charge within a A$710 million employee‑remediation provision linked to a Federal Court ruling on pay set‑offs.
  • Australian Food sales rose 3.6% to A$27.63 billion as the retailer expanded its Lower Shelf Price range by 350+ items to more than 800 and used targeted discounts, with market share said to be stabilising.
  • The board declared a 45c interim dividend, and shares jumped in early trade by roughly 8% to 10% as investors focused on the earnings beat and sales momentum.
  • Early in the new half, Australian food sales grew 5.8% over the first seven weeks, with Woolworths also preparing to contest ACCC discount‑representation allegations in Federal Court in April.