Despite reporting losses in its Masters business, Woolworths has still managed to come out on top for the full year of 2013.
The supermarket giant has achieved a net profit of $2.25 billion. This is up 24.4 per cent from the previous year. Its sales from continuing operations also increased by 6.8 per cent to $58.5 billion and it also experienced a 9.2 per cent earnings growth of $3.65 billion.
Woolworths managing director and CEO Grant O’Brien believes delivering on its strategic priorities, including maximising momentum in food and liquor; building growth for its businesses; and putting in place enablers for a new era of growth.
“We continued to work on our strategic priorities to maximise the value delivered to shareholders through our existing portfolio whilst also looking to the future with new growth businesses,” he said.
“This is the path to a sustainable future for Woolworths. While there is more to do realise our ambition of double digit profit growth in the future, the evidence shows we are heading in the right direction."
Woolworths' core Australian food, liquor and petrol business, which drives a majority of the group's profits, reported an 8.7 per cent boost in earnings to $3.2 billion.
Its Big W business experienced a 7.2 per cent earnings growth from the previous year to $191.3 million. The budget department store said it saw a weaker second half. This was impacted by unseasonable warm weather, which softened sales of winter apparel relative to expectations, and ongoing price deflation, especially in home entertainment that saw an 11.8 per cent deflation for the year. This however was offset by the positive performance of the home, leisure, toys and sporting, and apparel categories.
O’Brien also reiterated its home improvement retailer, Masters, made a loss before interest and tax of $138.9 million, which was more than initially anticipated. It’s expected results for FY14 will not exceed these levels before it breaks even in FY16.