Woolworths Group has released its full year financial results for F23 (July-June), with Woolworths New Zealand reporting a 21.0% decline in EBIT to $249 million following significant cost inflation, despite a 4.6% increase in Sales in F23.
Woolworths New Zealand Managing Director, Spencer Sonn says “The past year has been characterised by high inflation and we have not been immune to that. We know our customers have been facing cost challenges and, as a business, we are no different.
“High global inflation, ongoing supply chain issues and, closer to home, devastating weather events have all had a material impact on our business and affected our performance during the year, however, I’m pleased with how we have increased wages for our team members and continued to pay our suppliers a fair price.
“Like all New Zealanders, our team is facing cost of living pressures too and therefore, despite the challenging operating environment, we have continued to prioritise our team and through a new agreement, delivered an average wage increase of 19% over 2 years.
“As announced in July, we are committed to continuing to invest in New Zealand including accelerated spending of $400 million to renew our 191 strong Store and Distribution Centre network to make shopping with us better for customers and working with us better for our team. This will also build a more sustainable business in the long term for all stakeholders.
“Other changes we are making for our customers include the recent launch of our rapid delivery service MILKRUN, increasing our funding for our community food rescue partners via our Food for Good Foundation, and an increased focus on fresh produce with construction underway on our new Christchurch Fresh Distribution Centre.
“I am excited about the year ahead and helping our customers find even more great value everytime they shop with us. We know it’s been a tough year for many of them. The recently announced change from Countdown to Woolworths Supermarkets and the transition of Onecard to Everyday Rewards provides focus and energy to our plans,” says Spencer.
Food inflation remained elevated, driven by market-wide inflation with average price growth of 9.2% in Q4, slightly below Q3, and below the NZ Food Price Index for that time.
Click here to view the full Woolworths Group F23 Profit Announcement
