News: WOW Woolworths Reports Strong Sales Growth Ex. Hotels In First Eight Weeks Of FY21

Aug 27 (Reuters) - Woolworths Group Ltd (WOW) :

• SALES GROWTH IN FIRST EIGHT WEEKS OF F21 HAS BEEN STRONG ACROSS ALL BUSINESSES EXCEPT HOTELS
• OUTLOOK FOR YEAR AHEAD IS UNCERTAIN AND RECENT EVENTS IN VICTORIA HAVE REMINDED THAT SITUATION REMAINS CHALLENGING
• FOR F21, CENTRAL OVERHEADS EXPECTED TO BE ABOUT $160 MILLION
• AUSTRALIAN FOOD SALES HAVE REMAINED STRONG IN FIRST EIGHT WEEKS OF F21 WITH TOTAL SALES INCREASING BY 11.9%
• BIG W SALES GROWTH REMAINS STRONG IN FIRST EIGHT WEEKS OF F21, INCREASING BY 21.1%
• FOR FIRST EIGHT WEEKS OF FY21, INCREMENTAL COVID-RELATED COSTS ABOUT $107 MILLION (EX. SOME COSTS)
• ASSUME SOME LEVEL OF ELEVATED SALES AND COSTS WILL CONTINUE FOR REMAINDER OF H1 F21
• CURRENTLY 80 HOTELS AND FIVE MANAGED CLUBS REMAIN CLOSED IN VICTORIA
• DESPITE A CONTINUED MATERIAL IMPACT ON SALES IN F21 TO DATE, HOTELS WAS PROFITABLE IN JULY BUT BELOW LAST YEAR
• INVENTORY LEVELS BELOW TYPICAL LEVELS BUT WE EXPECT INVENTORY TO IMPROVE FROM MID-SEPTEMBER
• ESTIMATES TOTAL SALARY PAYMENT SHORTFALL & ASSOCIATED INTEREST, REMEDIATION COSTS OF $500 MILLION