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BRIEF-Woolworths Sees F20 EBIT Before Significant Items Of $3,200-$3,250 Mln

Published 23/06/2020, 09:23 am
© Reuters.
WOW
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June 23 (Reuters) - Woolworths Group Ltd WOW.AX :

* WOOLWORTHS SEES F20 EXPECTED PRE-TAX SIGNIFICANT ITEMS OF $591 MILLION

* WOOLWORTHS SEES F20 EBIT BEFORE SIGNIFICANT ITEMS EXPECTED TO BE $3,200 - $3,250 MILLION

* PLANS TO DEVELOP TWO NEW AUTOMATED DISTRIBUTION CENTRES AT MOOREBANK IN NSW

* EXPECTED TO INVEST $700 - $780 MILLION IN TECHNOLOGY AND FITOUT OF TWO DISTRIBUTION CENTRES OVER NEXT FOUR YEARS

* CONSTRUCTION DISTRIBUTION CENTRE EXPECTED TO BE COMPLETED BY END OF CALENDAR 2023

* TRADING HAS REMAINED STRONG IN Q4 TO DATE

* DECISION TO PROCEED WITH SUPPLY CHAIN TRANSFORMATION WILL RESULT IN ONE-OFF PRE-TAX COST OF $176 MILLION TO BE RECORDED IN FY20

* TOTAL COST ESTIMATED TO COMPLETE SEPARATION OF ENDEAVOUR GROUP REMAINS IN LINE WITH ORIGINAL ESTIMATE

* IN H2 FY20, FURTHER $105 MILLION EXPECTED AS COSTS ASSOCIATED WITH ONGOING REMEDIATION EFFORTS

* REMEDIATION COSTS ASSOCIATED WITH PAYMENT SHORTFALLS FOR RETAIL SALARIED TEAM MEMBERS ACROSS GROUP'S RETAIL BUSINESSES

* TOTAL COST OF REMEDIATION IS EXPECTED TO BE ABOUT $390 MILLION

* PAYMENT SHORTFALLS IDENTIFIED FOR SALARIED VENUE TEAM MEMBERS WITHIN ALH HOTELS

* REVIEW IDENTIFIED SALARIED VENUE TEAM MEMBERS WERE NOT PAID IN FULL COMPLIANCE WITH GROUP'S OBLIGATIONS UNDER HIGA

* GROUP REMAINS COMMITTED TO FULLY RECTIFYING ANY PAYMENT SHORTFALLS ACROSS ALL GROUP BUSINESSES AS QUICKLY AS POSSIBLE

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