Woolworths shares drop 4% as half-year profit, dividend miss estimates
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More news: Woolworths shares fell more than 4% after the supermarket group's first-half net profit and interim dividend fell short of market forecasts.
Woolworths shares were down 4.4% to $30.18 at 1:10pm AEDT.
eToro market analyst Josh Gilbert said the drop in first-half profit "remains disappointing" despite the one-time impact from industrial action during the period.
However, he noted that Woolworths' $400 million cost-saving initiative, announced alongside the result, is "a step in the right direction".
What they said: "It’s been a baptism of fire for Amanda Bardwell since taking over in September last year," said Gilbert.
"So far, she’s spent most of her brief tenure as CEO putting out flames, leaving little time to stamp her mark on the business."
Woolworths cuts dividend as industrial action weighs on HY profit
The news: Supermarket giant Woolworths cut dividend payments as sales and profit for the first half of fiscal 2025 were hit by industrial action.
The numbers: The grocer nonetheless swung to a first-half net profit of $739 million after last year's result was impacted by writedowns, but the figure came in behind market estimates of $770 million, according to Visible Alpha data.
Operating earnings (EBIT) before significant items fell 14.2%, further than the 12% decline expected by analysts.
It declared a 39 cent per share interim dividend, below estimates of 40 cents and 17% lower than last year’s 47 cents per share.
The context: Woolworths CEO Amanda Bardwell noted that customer metrics have begun to improve following a "challenging half" which was impacted by industrial action and ongoing cost-of-living pressures.
The company said the decline in operating earnings was driven by lower earnings from its Australian food segment, weighed down by price and promotional investment, and ongoing inflation in wages and other costs.
The source: ASX announcement
