Woolworths first-half NPAT falls 49% due to class action payout
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The news: Woolworths net profit after tax has fallen 49.4% to $485 million compared to the previous corresponding period due to the impact of a Federal Court judgment that found the supermarket giant had underpaid salaried managers.
The numbers: Group net profit after tax figure was below the market consensus expectation for $805.5 million, according to Visible Alpha. Group NPAT before significant items lifted 16.4% year on year to $859 million.
Group sales lifted 3.4% to $37.1 billion, just under the expected $37.2 billion.
A fully franked interim dividend of 45 cents per share was declared for the period, higher than the 39 cents declared in the previous corresponding period and the expected 43.3 cents per share.
The context: Woolworths said the decline in first-half earnings was driven by a court-ordered payment to store team members following findings of underpayment.
Earnings were also weighed down by the redundancy costs associated with Endeavour Group's decision to exit supply chain commercial agreements, which resulted in the closure of the Melbourne Liquor distribution centre.
The company expects improved sales growth in the Australian food retail business to be at the upper end of the mid-to-high single digit range outlined in August. However, sales in New Zealand are expected to remain challenging.
The source: ASX
