Woolworths’ Disney Ooshies program helped deliver food sales growth of 11.5 per cent for the first quarter to $12 billion driven as people increasingly ate at home during the pandemic.
Overall, the company grew sales by 12.3 per cent to $17.85 billion.
“It has been a pleasing start to the 2021 financial year with all retail businesses delivering strong sales growth and customer metrics remaining solid,” said Woolworths chief executive Brad Banducci.
“COVID costs remain material as we continue to prioritise the safety of our customers and team but have moderated as we become more efficient at operating COVIDSafe.”
Citi was forecasting Woolworths food sales would grow 11.6 per cent like-for-like for the first quarter before moderating to 9.2 per cent growth for the second quarter.
Analysts were expecting Woolworths to beat Coles strong first quarter result.
“Channel checks indicated that Woolworths out-traded Coles through this period, partially reflecting a successful Disney collectables program,” said Morgan Stanley.
Coles unwrapped one of its highest-ever quarterly sales figures, buoyed by COVID-19 lockdowns.
Coles’ supermarket sales rose 9.7 per cent for the quarter to $8.46 billion, helped along by locked-down Victoria where spending has remained elevated.
“The outlook to the grocery industry remains robust, with a strong medium term demand backdrop; rational market conditions supporting gross margins; and declining COVID-19 fixed costs buffering EBIT (earnings before interest and tax ) margins,” said Citi.
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Source: Thanks smh.com