Woolworths has defied what it describes as “increasingly challenging” market conditions, reporting a rise in New Zealand sales and earnings over the second half of 2012.
The retail giant recorded NZ$2.94bn (US$2.42bn) in supermarket sales in the six months to December 31, a 2.3 per cent increase compared with the corresponding period in 2011.
The company’s earnings before interest and tax rose by 8.9 per cent to NZ$162.3m (US$133.75m) over the same time period.
“This is a strong result given the New Zealand retail environment has been characterised by low growth and even lower inflation with retail trading conditions becoming increasingly challenging during the half,” Woolworth said in statement.
The Australian-based company increased its New Zealand gross margin slightly over the first half of 2012, highlighting more effective promotional activity and increased direct global sourcing as reasons for the rise.
Last month, Woolworth’s revealed its Australian supermarket sales for the second half of 2012 rose by 3.7 per cent.
The retailer has also improved its financial forecast for 2013, now expecting its net profit to be at least 4 per cent higher than the previous financial year.
