Woolworths sales up 6.5pc to $15.7b

Woolworths supermarket sales in New Zealand reached A$1.0 billion ($1.26 billion) for the third quarter. Photo / Greg Bowker

Supermarket giant Woolworths said third-quarter sales increased by 6.5 per cent, adjusted for Easter, to A$12.3 billion ($15.70 billion) for the 13 weeks to April 5.

The rise was 5.9 per cent excluding Easter sales. Excluding petrol sales, sales increased by 8.3 per cent or 9.0 per cent (adjusted for Easter).

Woolworths said it expected sales from continuing operations to grow in the upper single digits (excluding petrol sales) on a 52-week basis.

But this guidance is subject to uncertainty over macroeconomic factors affecting discretionary spending, including inflation, fluctuating petrol prices, interest rates, unemployment and consumer confidence levels.

Lower petrol prices led to a sales drop of 11.4 per cent excluding Easter, with comparable dollar sales slumping by 15.2 per cent on the previous corresponding period.

But total petrol sales volumes increased by 5.9 per cent for the third quarter excluding Easter.

Australian food and liquor sales jumped by 10 per cent for the third quarter to A$8.4 billion excluding Easter, Woolworths said.

Including Easter sales, the increase lifted to 10.8 per cent.

The sales rise came as inflation subsided from 4.8 per cent in the second quarter to 4.4 per cent in the third quarter, and Woolworths opened seven supermarkets in Australia.

Supermarket sales in New Zealand reached A$1.0 billion ($1.26 billion) for the third quarter - a rise of 3.0 per cent, and 3.2 per cent when adjusted for Easter sales. Overall food inflation in New Zealand ran at 6.0 per cent for the third quarter.

Overall, Woolworths' supermarkets division saw sales rise by 6 per cent to A$10.6 billion during the third quarter, including Easter sales.

The grocer's Big W chain saw third-quarter sales rise by 9 per cent, excluding Easter sales, to A$958 million, continuing the upward momentum from the second quarter. Including Easter sales, Big W sales rose 9.7 per cent.

But the highlight across the group was sales of consumer electronics which grew by 16 per cent (16.3 per cent including Easter sales) to A$413 million, buoyed by sales in its Dick Smith domestic stores, which increased by 15.8 per cent excluding Easter.

Woolworths opened six new consumer electronics stores during the third quarter, taking its total stores in this division to 434.

Hotel sales in the third quarter firmed by 1.5 per cent (1.1 per cent including Easter sales) to A$267 million. Woolworths added one more property to its hotel portfolio during the quarter and now has 277 properties.

- AAP