Due to the restructure of Dick Smith electronics business, which is costing the company $420 million, Woolworth’s has reported a net profit of $1.8 billion, down 14.5 per cent for the 2012 full year to June 24.

But excluding the impact of the Dick Smith loss, Woolworths made a net profit of $2.2 billion, up 3.6 per cent on the last year from $2.1 billion.

Sales from continuing operations also grew 4.8 per cent to $55.1 billion.

The company also reported a trading EBIT of 5.6 per cent before investment in home improvement.

Grant O’Brien, Woolworths CEO said: “Woolworths has a clear strategy which is building momentum with benefits arising from continuing investment underpinning long term sustainable profit growth.

 “We expect the Australian and New Zealand retail sectors to continue to experience challenging trading conditions with low consumer confidence continuing to dampen consumer retail spending in the 2013 financial year.

 Woolworths has the ability to adapt to challenging economic circumstances and is proving it is a resilient business.”

 As a result, the company said its expects further earnings growth in 2013 financial year and has predicts its  net profit after tax from continuing operations will grow in the range of 3 per cent to 6 per cent.