Sales for the year were $1.5 billion, an increase of 2.5% on the previous year with comparable sales increasing by 1.2%. Sales growth was driven by a strong result in Bars, Food and Accommodation with newly refurbished venues delivering an improved performance despite a subdued Victorian market.
Hotels gross margin declined by 26 bps due to a change in mix towards lower margin Bar and Food sales and the impact of higher food input costs which were not fully recovered through higher prices.
CODB as a percentage of sales increased 185 bps on the prior year, impacted by additional rental expense of $12.1 million following the sale and leaseback of 54 freehold hotel sites in Q2’15. CODB was also impacted by increased spending on promotional activities to drive increased hotel patronage.
Reported EBIT decreased 11.1% on the previous year to $208.5 million. Excluding the impact of the additional rental expense following the sale of the hotel sites, EBIT declined 5.9% on the prior year.
|BEFORE SIGNIFICANT ITEMS1||FY16
|Gross Margin||(%)||82.85||83.11||(26) bps|
|EBIT to Sales||(%)||13.79||15.90||(211) bps|
In FY16, total significant items of $4,013.7 million before tax ($2,627.8 million after tax attributable to shareholders of Woolworths) were recognised. In FY15, total significant items of $425.9 million before tax ($307.3 million after tax attributable to shareholders of Woolworths) were recognised. Where noted, profit and loss items have been adjusted to reflect these significant items.
2.5% from 2015
EBIT (before significant items 1)
11.1% from 2015