Woolworths is constantly making every year profitable by cutting its costs meticulously through automated ordering and centralized distribution networks.
For June 2006 to 2007 fiscal year, Woolworths’ net profit jumped 27.5% to a record $1.026bn - slightly higher than the expected. Firm’s aggressive pricing strategy put its sales up by 12.6% to $42bn, whereas earning for the second half increased 27% to $598.4m.
Woolworths every mean to increase sales seems prolific. Retailer provides fuel at 558 filling stations and offered 4 cents-a-liter discount on it when they spend at least $24.83 in its supermarkets, due to this firm made $33.94m in the fiscal year.
Buoyant with the results, Woolworths is hopeful for the coming time and expects 20% surge in the profit for third consecutive year. Firm is hoping more than 23% increase in net income, whereas expects 7 to 10% rise in sales. Woolworths is looking at accelerating business investments in fiscal 2008 as it plans capital spending of about $1.3bn. Stock exchange also welcomed firm decision and pushed its shares up by 1.6% to $23.29, extending this year’s gain to 18%. The stock has posted seven straight annual gains.
Woolworths hostile attempt to augment its presence worldwide was jolted when its efforts to buy New Zealand’s Warehouse Group Ltd. in June was blocked by the antitrust regulator. Coles also thwarted its ambition to acquire its non-food assets. In the absence of major acquisitions, the company is set to continue its effort to expand its base and market, for which it is considering to undertake some form of capital management during the year.
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Via: Bloomberg
