GROUP SALES – FULL YEAR |
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| FY16 (52 weeks) $M |
FY15 (52 weeks) $M |
Change | ||
| Continuing Operations | ||||
| Australian Food | 34,798 | 34,881 | (0.2)% | |
| Petrol (dollars) 1 | 4,612 | 5,632 | (18.1)% | |
| Petrol (litres) 1 | 3,843 | 4,229 | (9.1)% | |
| Australian Food and Petrol 1 | 39,410 | 40,513 | (2.7)% | |
| Endeavour Drinks Group | 7,589 | 7,251 | 4.7% | |
| Australian Food, Petrol and Endeavour Drinks Group | 46,999 | 47,764 | (1.6)% | |
| New Zealand Food (AUD) | 5,592 | 5,467 | 2.3% | |
| New Zealand Food (NZD) | 6,101 | 5,878 | 3.8% | |
| BIGW | 3,820 | 3,929 | (2.8)% | |
| Hotels | 1,512 | 1,475 | 2.5% | |
| EziBuy (Unallocated) | 163 | 177 | (7.9)% | |
| Sales from Continuing Operations | 58,086 | 58,812 | (1.2)% | |
| Sales from Continuing Operations (excluding Petrol) | 53,474 | 53,180 | 0.6% | |
| Discontinued Operations (Home Improvement) | 2,100 | 1,867 | 12.5% | |
| Group Sales | 60,186 | 60,679 | (0.8)% | |
| Group Sales (excluding Petrol) | 55,574 | 55,047 | 1.0% | |
EARNINGS/(LOSS) BEFORE INTEREST AND TAX (EBIT/LBIT) |
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| FY16 (52 weeks) $M |
FY15 (52 weeks) $M |
Change | ||
| Continuing Operations (before Significant Items 2) | ||||
| Australian Food and Petrol | 1,759.8 | 2,970.2 | (40.8)% | |
| Endeavour Drinks Group | 483.8 | 469.6 | 3.0% | |
| Australian Food, Petrol and Endeavour Drinks Group | 2,243.6 | 3,439.8 | (34.8)% | |
| New Zealand Food (AUD) | 284.4 | 303.2 | (6.2)% | |
| New Zealand Food (NZD) | 313.9 | 326.0 | (3.7)% | |
| BIGW | (14.9) | 111.7 | (113.3)% | |
| Hotels | 208.5 | 234.5 | (11.1)% | |
| Central Overheads | (157.8) | (116.1) | 35.9% | |
| EBIT Continuing Operations (before Significant Items 2) | 2,563.8 | 3,973.1 | (35.5)% | |
| Significant Items 2 (before tax) | (958.6) | (423.2) | n.c | |
| EBIT Continuing Operations (after Significant Items 2) | 1,605.2 | 3,549.9 | (54.8)% | |
| Discontinued Operations | ||||
| Home Improvement (before Significant Items 2) | (218.8) | (224.7) | (2.6)% | |
| Significant Items 2 (before tax) | (3,055.1) | (2.7) | n.c | |
| LBIT Discontinued Operations (after Significant Items 2) | (3,273.9) | (227.4) | 1,339.7% | |
GROUP PROFIT AND LOSS FOR THE 52 WEEKS ENDED 26 JUNE 2016 |
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| FY16 (52 weeks) |
FY15 (52 weeks) |
Change | ||
| Continuing Operations – Before Significant Items 2 | ||||
| Earnings before interest, tax, depreciation, amortisation and rent | ($m) | 5,620.1 | 6,899.2 | (18.5)% |
| Rent | ($m) | (2,033.9) | (1,951.3) | 4.2% |
| Earnings before interest, tax, depreciation and amortisation | ($m) | 3,586.2 | 4,947.9 | (27.5)% |
| Depreciation and amortisation 3 | ($m) | (1,022.4) | (974.8) | 4.9% |
| EBIT | ($m) | 2,563.8 | 3,973.1 | (35.5)% |
| Net financial expenses | ($m) | (245.6) | (253.3) | (3.0)% |
| Income tax expense | ($m) | (712.6) | (1,112.8) | (36.0)% |
| Net Profit After Tax (NPAT) | ($m) | 1,605.6 | 2,607.0 | (38.4)% |
| Non-controlling interests | ($m) | (47.4) | (45.6) | (3.9)% |
| NPAT from Continuing Operations attributable to shareholders of Woolworths (before Significant Items 2) | ($m) | 1,558.2 | 2,561.4 | (39.2)% |
| Net Loss After Tax (NLAT) from Discontinued Operations attributable to shareholders of Woolworths (before Significant Items 2) | ($m) | (165.2) | (108.1) | 52.8% |
| Significant Items 2 after tax attributable to shareholders of Woolworths from: | ($m) | |||
| Continuing Operations | ($m) | (754.7) | (306.0) | n.c |
| Discontinued Operations | ($m) | (1,873.1) | (1.3) | n.c |
| (NLAT)/NPAT attributable to shareholders of Woolworths | ($m) | (1,234.8) | 2,146.0 | (157.5)% |
| MARGINS – Continuing Operations before Significant Items 2 | ||||
| Gross Profit | (%) | 26.92 | 27.57 | (65) bps |
| Cost of doing business | (%) | 22.51 | 20.82 | 169 bps |
| EBIT | (%) | 4.41 | 6.75 | (234) bps |
| EARNINGS PER SHARE (EPS) AND DIVIDENDS | ||||
| Weighted average ordinary shares on issue | (million) | 1,263.5 | 1,256.6 | 0.6% |
| Ordinary EPS – from Continuing Operations: | ||||
| Before Significant Items 2 | (cents) | 123.3 | 203.9 | (39.5)% |
| After Significant Items 2 | (cents) | 63.6 | 179.5 | (64.6)% |
| Diluted EPS – from Continuing Operations: | ||||
| Before Significant Items 2 | (cents) | 123.3 | 203.3 | (39.4)% |
| After Significant Items 2 | (cents) | 63.6 | 179.0 | (64.5)% |
| Interim dividend per share | (cents) | 44 | 67 | (34.3)% |
| Final dividend per share 4 | (cents) | 33 | 72 | (54.2)% |
| Total dividend per share | (cents) | 77 | 139 | (44.6)% |
| Returns | ||||
| Funds employed (period end) | ($m) | 10,839.3 | 14,521.3 | (25.4)% |
| Return on Average Funds Employed 5 (before Significant Items 2) | (%) | 22.20% | 32.60% | (1,040) bps |
GROUP financial PERFORMANCE
Sales from Continuing Operations were $58.1 billion, a decrease of 1.2% in FY16 driven primarily by lower sales in Petrol. Excluding Petrol, sales increased 0.6% on the prior year.
Gross profit from Continuing Operations (before significant items 2) as a percentage of sales decreased 65 bps on the prior year to 26.9% driven primarily by the significant price investment in Australian Supermarkets during the year.
Cost of doing business from Continuing Operations (CODB) (before significant items 2) as a percentage of sales increased 169 bps on the prior year to 22.5% due to subdued sales growth limiting the ability to fractionalise costs, incremental investment in store labour in Australian and New Zealand Food and higher team performance-based bonuses. This was partially offset by cost savings generated primarily through improved efficiency across support functions.
EBIT from Continuing Operations (before significant items 2) decreased 35.5% on the prior year to $2,563.8 million.
Net financing costs decreased 3.0% on the prior year, primarily driven by a decrease in the net interest rate on lower debt.
NPAT attributable to shareholders of Woolworths from Continuing Operations (before significant items 2) decreased 39.2% on the prior year to $1,558.2 million, with corresponding EPS (before significant items 2) down 39.5% to 123.3 cents.
On a statutory basis, after reflecting the impact of significant items 2, the NLAT attributable to shareholders of Woolworths was $1,234.8 million compared to a NPAT of $2,146.0 million in FY15. The corresponding Loss Per Share (LPS) was 97.7 cents compared to EPS of 170.8 cents in FY15.
Petrol sales and volumes are not comparable with the prior period given changes to the Woolworths-Caltex alliance that became effective progressively during Q2’15. Given operational changes under the new arrangements with Caltex, Woolworths no longer recognises sales from the Caltex-operated sites in its financial results. The new arrangements do not have a material profit impact on the Woolworths Group. Further details on the revised arrangements with Caltex are provided in our ASX announcement dated 20 November 2014.
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.
Excludes $88.7 million of accelerated depreciation relating to significant items recognised in FY15.
Final 2016 dividend payable on 7 October 2016 will be fully franked.
Excludes Home Improvement.