Woolworths Group (ASX:WOW) reports sales growth, e-commerce boost in FY24

Woolworths Group, the nation's largest grocery retailer, reported a 5.6% increase in sales to $67.9 billion, driven by strong performance in its Australian supermarkets.

However, a $1.5 billion impairment on its New Zealand supermarkets weighed down its bottom line.

Excluding significant items, Woolworths' bottom line fell 0.6% to $1.7 billion for the fiscal year ended June 30.

Net profit stood at $108 million, factoring in the $1.5 billion impairment on its New Zealand food business.

Woolworths CEO, Brad Banducci, highlighted the company's efforts in addressing customer expectations and cost-of-living pressures.

"After a strong first half, we worked hard in H2 to address rapidly changing customer expectations following the drop in our customer scores in Q3 and a loss of sales momentum," said Banducci.

He also noted improved customer scores and sales momentum into FY25.

Progress was also made in WooliesX, Woolworths' digital and e-commerce arm, which saw normalised sales grow by 19.8%.

The company also announced a special dividend of 40 cents per share, alongside a fully franked final dividend of 57 cents per share.

E-commerce sales soared to approximately $8 billion, becoming a key driver of Australian Food earnings growth with weekly digital visits surpassing in-store transactions.

Woolworths also completed several strategic transactions, including the acquisition of a 55% interest in Petstock Group and the sale of a 5% stake in Endeavour Group (ASX:EDV).

"Our fundamentals position us well to meet our customers’ evolving everyday needs and create value for shareholders," stated Banducci, expressing confidence in the company's future under incoming CEO Amanda Bardwell.

Looking forward, Woolworths remains committed to its Everyday Retail strategy, expecting ongoing pressure from cost-of-living increases and competitive dynamics but driven by strong fundamentals and solid strategic initiatives.