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BRIEF-Woolworths Reports Strong Sales Growth Ex. Hotels In First Eight Weeks Of FY21

Published 27/08/2020, 11:16 am
© Reuters.
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Aug 27 (Reuters) - Woolworths Group Ltd WOW.AX :

* SALES GROWTH IN FIRST EIGHT WEEKS OF F21 HAS BEEN STRONG ACROSS ALL BUSINESSES EXCEPT HOTELS

* OUTLOOK FOR YEAR AHEAD IS UNCERTAIN AND RECENT EVENTS IN VICTORIA HAVE REMINDED THAT SITUATION REMAINS CHALLENGING

* FOR F21, CENTRAL OVERHEADS EXPECTED TO BE ABOUT $160 MILLION

* AUSTRALIAN FOOD SALES HAVE REMAINED STRONG IN FIRST EIGHT WEEKS OF F21 WITH TOTAL SALES INCREASING BY 11.9%

* BIG W SALES GROWTH REMAINS STRONG IN FIRST EIGHT WEEKS OF F21, INCREASING BY 21.1%

* FOR FIRST EIGHT WEEKS OF FY21, INCREMENTAL COVID-RELATED COSTS ABOUT $107 MILLION (EX. SOME COSTS)

* ASSUME SOME LEVEL OF ELEVATED SALES AND COSTS WILL CONTINUE FOR REMAINDER OF H1 F21

* CURRENTLY 80 HOTELS AND FIVE MANAGED CLUBS REMAIN CLOSED IN VICTORIA

* DESPITE A CONTINUED MATERIAL IMPACT ON SALES IN F21 TO DATE, HOTELS WAS PROFITABLE IN JULY BUT BELOW LAST YEAR

* INVENTORY LEVELS BELOW TYPICAL LEVELS BUT WE EXPECT INVENTORY TO IMPROVE FROM MID-SEPTEMBER

* ESTIMATES TOTAL SALARY PAYMENT SHORTFALL & ASSOCIATED INTEREST, REMEDIATION COSTS OF $500 MILLION

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