Woolworths shares slide amid swing to loss, CEO exit
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More news: Woolworths shares were down 5.3% in early trading on the ASX after the supermarket giant announced CEO Brad Banducci is retiring and posted a net loss of $781 million for the first half of the financial year.
Jarden analysts said Woolworths earnings results were softer than anticipated.
What they said: “Trading update also softer and likely to lead to some modest consensus downgrades. CEO transition a surprise as expected six to 12 months later,” the analysts said.
“We think overall result is OK but outlook commentary a little softer, particularly in context of current regulatory and cost backdrop.”
Woolworths slumps to first-half loss after hefty writedowns
More news: The supermarket giant slumped to a first-half loss on the back of major writedowns and a slide in earnings from New Zealand. It reported a net loss of $781 million for the half year to 1 January 2024, mainly due to a non-cash impairment of $1.5 billion against its New Zealand operations and another $209 million after changing the accounting recognition for its remaining stake in drinks giant Endeavour Group.
Excluding these, half-year net profit rose 2.5% to $929 million, and revenue was up 4.4% to $34.6 billion. The company will pay an interim dividend of 47 cents a share, up from 46 cents a year ago.
Sales at its main Australian food business were up 5.4%, while earnings jumped 9.9%. However, earnings in the New Zealand food business slumped 41% to NZ$71 million ($66.8 million), while those at Big W were down 60% to $54 million.
What they said: "Managing cost of living pressures remains the key issue for our customers and we are focused on helping our customers to spend less every time they shop with us,” outgoing CEO Brad Banducci said.
Woolworths CEO Brad Banducci retires, to be replaced by Amanda Bardwell
The news: Woolworths managing director and group CEO Brad Banducci has announced that he will retire and leave the company in September 2024. Amanda Bardwell has been announced as Banducci’s successor.
The numbers: Banducci has been at Woolworths for 13 years, including eight and a half as group CEO. Bardwell will commence in the role on 1 September and is currently managing director of Woolies X.
Bardwell has 30 years experience in retail, 23 of which were at Woolworths Group.
The context: Banducci's retirement announcement comes just days after he walked out of an interview with the ABC's Four Corners program.
What they said: Banducci said: “It has been a privilege to be a member of the Woolies team and one I have never taken for granted. We have a wonderfully talented and passionate team at Woolworths Group, as personified in Amanda Bardwell, and I look forward to working with Amanda and our team over the next few months as we set ourselves up for the next chapter”.
The sources: ASX announcement on CEO, ASX results announcement
