Solid growth for Woolworths

- Last updated on GMT

Related tags: Cent, Supermarket

Australia's top grocer Woolworths Ltd delivered a double-digit
sales rise and steady growth outlook on Monday.

Australia's top grocer Woolworths Ltd delivered a double-digit sales rise and steady growth outlook on Monday as investors, searching for cheer in a dour overall market, put the defensive stock in their shopping carts, Reuters reports. Woolworths reported a 10.1 per cent rise in sales to A$20.92 billion (US$10.7 billion) for 52 weeks to June 24, buoyed by an 11.4 per cent rise in fourth quarter sales. Shares in Woolworths, one of the market's favourites over the past year, bucked a weaker overall market to peak at A$10.50, up 2.8 percent, before closing up 28 cents at A$10.49.The shares closed two weeks ago at a record high A$11.14, nearly double its A$6 finish a year earlier. On a like-for-like basis, full-year sales grew 11 per cent to A$21.71 billion and fourth-quarter business expanded by 12.2 per cent to A$4.80 billion. Supermarkets, which make up 84 per cent of sales, improved sales by 11.4 per cent on a year ago.General merchandise grew 10.5 per cent for the full year to A$2.5 billion and rose 10.9 per cent in the fourth quarter from a year ago, when a rush to beat a new federal goods and services tax bloated sales results. Roger Corbett, chief executive for Woolworths, said the outlook for the supermarket and Big W general merchandise businesses was strong."In terms of our two major businesses, we're quite confident at this stage the trend remains as is,"​he said. As measured by government food, liquor and grocery data, Woolworths'​ 24.6 per cent market share was modestly above 1999/00.

Related topics: Market Trends

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