Australian retailer Woolworths Ltd has missed first-half profits forecasts as earnings were dragged down by its New Zealand and consumer electronics businesses.
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The company posted first-half net income of A$983.3m (US$361.2m), compared to A$634m in the previous year, but missed analyst forecasts of A$1.001bn.
Net sales increased 8.8% to reach A$26.1bn.
The retailer reaffirmed its forecast for annual profit to rise between 9% and 12% in the year ended June from the A$1.63bn posted in 2008, and said trading across all businesses had been “a little stronger” in January and February.
Earnings from Woolworths’ New Zealand supermarkets fell 21% to A$68.4m as the company cut prices to win sales from rival Foodstuffs NZ and a falling currency lowered the value of sales translated into Australian dollars.
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By GlobalDataProfit from the company’s Big W discount department stores gained 10% in the half to reach A$142.2m.
“I am confident that we are well positioned to take advantage of growth opportunities as they arise and to meet future challenges. Our balance sheet, debt profile and the strength of our credit ratings ensure we are very well positioned in the current environment,” said Michael Luscombe, CEO.
