Full Year 2024 Woolworths Group Ltd Earnings Call Transcript
Key Points
- Group normalized sales increased by 3.7% year-over-year, with eCommerce sales driving around half of this growth, increasing by 18.5%.
- Australian Food segment saw normalized sales increase by 3.7% and EBIT increase by 6%, with significant contributions from WooliesX.
- Strong growth in digital engagement, with weekly visits to digital platforms up 19.7% year-over-year, reaching 27.2 million visits per week.
- Everyday Rewards program in Australia reached 9.8 million active members, with 770,000 new members joining in FY24.
- Significant progress in supply chain automation, with the Melbourne South Regional Distribution Center achieving a 30% reduction in cost per carton and improved throughput.
- New Zealand Food segment experienced a challenging year, with EBIT declining by 57% due to value-conscious customers and higher wage costs.
- BIG W segment saw a 3.9% decline in sales and a 90% drop in EBIT, reflecting a challenging trading environment and elevated markdown activity.
- Persistent cost-of-living pressures led to a decline in customer scores and a loss of sales momentum in Q3.
- Group EBIT margin decreased by 12 basis points to 4.7%, with half-two EBIT declining by 1.3% year-over-year.
- Significant items, including a NZD 1.6 billion impairment in New Zealand Food and a mark-to-market loss on the Endeavour Group investment, impacted overall financial performance.
Thank you for standing by, and welcome to the Woolworths Group Limited FY24 full-year earnings announcement. (Operator Instructions) I would now like to hand the conference over to Brad Banducci, Managing Director and CEO of Woolworths Group. Please go ahead.
Good morning, everyone and welcome to Woolworths Group's full-year results for the 2024 financial year. Joining me for today's presentation are Stephen Harrison, our CFO, who will present our financial results a little later; and the CEO-elect Amanda Bardwell, who will be presenting with me on today's call.
Also joining us in the room are Spencer Sonn, Managing Director of Woolworths New Zealand; Von Ingram Managing Director of W Living; Dan Hake, a new father, congratulations, Dan, on the weekend, Managing Director of BIG W, and thank you for coming in; Guy Brent, Managing Director of Woolworths Food Company; and Paul Harker, our Chief Commercial Officer for Australia Food.
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