Woolworths Group’s September quarter results indicate muted growth, with first-quarter sales reaching $18.48 billion. While this figure slightly surpassed RBC Capital Markets’ estimates, it fell short of consensus expectations. According to RBC Capital Markets analyst Michael Toner, Australian food comparable sales increased by 1.6 per cent, exceeding RBC’s forecast of 1.5 per cent but trailing the consensus of 2.2 per cent. Woolworths is a major Australian company operating supermarkets and other retail outlets. It provides a wide range of products and services to consumers across Australia and New Zealand.
Positive item growth within the Australian food sector was recorded at 0.5 per cent, a weaker performance compared to the previous year’s 1.2 per cent. Average prices experienced a slight decline during the period. In contrast, New Zealand food sales outperformed RBC’s expectations, climbing 3.7 per cent on comparable items, bolstered by inflationary price trends. The Australian B2B segment demonstrated robust growth at 6.2 per cent, primarily driven by PFD Food Services.
Big W experienced flat sales, while Petstock saw a substantial increase of 15.5 per cent. Toner highlighted that early momentum in the second quarter appears positive, with Australian food retail sales up 3.2 per cent to date, or 5.0 per cent excluding tobacco sales. However, he cautioned against extrapolating long-term trends based on just one month of trading data.
Following the release of the sales figures, shares in Woolworths showed a positive reaction, rising 1.5 per cent in the initial hour of trading. Investors are closely watching the company’s performance amid evolving market conditions and consumer behaviour.