Foodland Associated Ltd increased its after-tax profit by 18.8% to $A142.7 million.
The result included $A37.2 million ($A25.8 million last year) of unusuals & discontinued operations. Excluding those, the increase was 11.9% to $A105.5 million.
Earnings/share rose 18.1% to A121.98c.
Sales from continuing operations rose 2.6% to $A5.9 billion, but including discontinued operations they were down 5.6% to $A6 billion.
Ebita rose 5.3% to $A299.4 million, ebit rose 6% to $A256.5 million, pretax profit rose 18% to $A225.9 million.
The New Zealand supermarkets, biggest part of FAL’s business, increased earnings by 9.1% to $A149 million on sales up 3.2% to $A3.3 billion.
Group managing director Trevor Coates said the combined benefits from store rebranding (Woolworths & Foodtown) together with the increased focus on value across all store brands, particularly at Countdown, have resulted in strong sales growth & significant market share increases, a trend we anticipate will continue.
“Despite reinvesting a portion of our net synergy benefits in driving topline growth, the contribution from our New Zealand supermarket division has been lifted by 10.4% (in local money) to $NZ169 million.
“The overall contribution from Progressive Enterprises Ltd was $NZ180.5 million. This compared to $NZ166.4 million in 2003 and $NZ135.5 million at the time of the acquisition of Woolworths NZ in 2002.”The after-tax profit included $A39.3 million of exceptional gains from the sale of Farmers and most of the group’s property portfolio s in Australia & New Zealand.