News: WOW Woolworths Says Sales In First Eight Weeks Of Year Have Shown Similar Trends To Q4

Aug 23 (Reuters) - Woolworths Group Ltd (WOW) :

• SALES IN FIRST EIGHT WEEKS OF YEAR HAVE SHOWN SIMILAR TRENDS TO Q4
• LOOKING AHEAD TO F24, WE EXPECT FOOD INFLATION IN AUSTRALIA AND NEW ZEALAND TO CONTINUE TO MODERATE
• IN AUSTRALIAN FOOD, WOOLWORTHS FOOD RETAIL SALES GROWTH FOR F24 TO DATE REMAINED STRONG AT APPROXIMATELY 6.5%
• BIG W SALES IN FIRST EIGHT WEEKS OF YEAR DECLINING ON PRIOR YEAR
• COSTS IN F24 WILL BE IMPACTED BY MATERIAL WAGE INCREASES AND INFLATION IN ENERGY AND TRANSPORT
• REMAIN CAUTIOUSLY OPTIMISTIC ABOUT YEAR AHEAD
• EBIT GROWTH IN AUSTRALIAN FOOD IN F24 NEEDS TO BE VIEWED IN CONTEXT COST INFLATION
• NEW ZEALAND FOOD SALES INCREASED BY APPROXIMATELY 4.5% IN F24 TO DATE
• OTHER COSTS IN F24 ARE EXPECTED TO BE IN LINE WITH F23 AT A$250 MILLION EXCLUDING WOOLWORTHS GROUP'S SHARE OF ENDEAVOUR GROUP'S EARNINGS
• BIG W SALES MOMENTUM CONTINUES TO BE CHALLENGED WITH SALES DOWN APPROXIMATELY 6% IN F24 TO DATE
• OUTLOOK FOR REMAINDER OF YEAR IS UNCERTAIN FOR BIG W
• PARTICULARLY FOCUSED ON ADDRESSING COST-OF-LIVING PRESSURES EXPERIENCED BY OUR CUSTOMERS AND TEAM
• F24 CAPEX BUDGET IS ABOUT A$2 BILLION
• SHORT-TERM OUTLOOK REMAINS CHALLENGING. FOR NEW ZEALAND BUSINESS
• WILL INVEST CAPEX OF OVER A$40 MILLION IN CCTV UPGRADES, TEAM SAFETY BODY-WORN CAMERAS AND WEARABLE DURESS DEVICES TO IMPROVE SAFETY
• WAGES FOR NZ STORE TEAMS WILL INCREASE BY 7% FROM JULY 1
• LOOKING AHEAD TO F24, EXPECT FOOD INFLATION IN AUSTRALIA AND NZ WILL LIKELY REMAIN ELEVATED IN SOME PACKAGED CATEGORIES
• LOOKING AHEAD TO F24, EXPECT CONSUMER ENVIRONMENT TO REMAIN CHALLENGING
• INCREASINGLY SEEING CUSTOMERS BECOME MORE CAREFUL IN THEIR SPENDING PATTERNS