Sales *
$55.5B
3.7% from 2016
Growth of 4.5% and 4.3% in Australian Food and Endeavour Drinks respectively drove the majority of the growth but was somewhat offset by the sales reduction in BIG W.
Gross profit as A % of sales ^
28.71%
35bps from 2016
Driven primarily by the material improvement in stock loss in Australian and New Zealand Food during the year, somewhat offset by continued price investment.
Cost of doing business (cobd) as a % of sales ^
24.52%
74bps from 2016
Primarily due to increased investment in Australian and New Zealand Food into our customer offers and higher team performance-based bonuses. Excluding the incremental performance-based incentives and $35.3 million BIG W impairment in HY17, CODB before significant items increased by 33 bps for FY17 and decreased by 4 bps in the second half.
EBIT ^
$2,326M
4.9% from 2016
The majority of the reduction is as a result of higher losses in BIG W. In the second half, EBIT from continuing operations (before significant items 1) increased by 11.0%, driven by Australian Food.
Net financing cost
21.2%
From 2016
This is due to lower average debt and effective borrowing rates.
NPAT #
$1,422.1M
3.6% from 2016
With corresponding EPS 2 down 5.1% to 110.8 cents.
On a statutory basis, the NPAT attributable to equity holders of the parent entity was $1,533.5 million compared to a NLAT of $1,234.8 million in FY16 after significant items 1. The corresponding EPS was 119.4 compared to a loss per share (LPS) of 97.7 cents in FY16.
* From continuing operations.
^ From continuing operations before significant items.
# Attributable to equity holders of the parent entity from continuing operations, before significant items.
GROUP SALES – FULL YEAR
| FY17 52 WEEKS $M |
FY16 52 WEEKS $M |
CHANGE | |
| Continuing operations | |||
| Australian Food 2 | 36,371 | 34,798 | 4.5% |
| Endeavour Drinks | 7,913 | 7,589 | 4.3% |
| New Zealand Food (AUD) | 5,887 | 5,592 | 5.3% |
| New Zealand Food (NZD) | 6,232 | 6,101 | 2.1% |
| BIG W | 3,598 | 3,820 | (5.8)% |
| Hotels | 1,553 | 1,512 | 2.7% |
| Unallocated (EziBuy) | 153 | 163 | (6.1)% |
| Sales from continuing operations | 55,475 | 53,474 | 3.7% |
| Discontinued operations | |||
| Home Improvement | 903 | 2,100 | (57.0)% |
| Petrol 2 | 4,682 | 4,612 | 1.5% |
| Sales from discontinued operations | 5,585 | 6,712 | (16.8)% |
| Group sales | 61,060 | 60,186 | 1.5% |
EARNINGS/(LOSS) BEFORE INTEREST AND TAX (EBIT/LBIT)
| FY17 (52 weeks) $M |
FY16 (52 weeks) $M |
Change | |
| Continuing operations (before significant items 1) | |||
| Australian Food 2 | 1,603.1 | 1,642.0 | (2.4)% |
| Endeavour Drinks | 502.5 | 483.8 | 3.9% |
| New Zealand Food | 292.3 | 284.4 | 2.8% |
| New Zealand Food (NZD) | 309.4 | 313.9 | (1.4)% |
| BIG W | (150.5) | (14.9) | n.m. |
| Hotels | 232.9 | 208.5 | 11.7% |
| Central overheads | (154.3) | (157.8) | (2.2)% |
| EBIT continuing operations (before significant items 1) | 2,326.0 | 2,446.0 | (4.9)% |
| Significant items 1 (before tax) | – | (951.1) | n.c. |
| EBIT continuing operations (after significant items 1) | 2,326.0 | 1,494.9 | 55.6% |
| Discontinued operations (before significant items 1) | |||
| Home Improvement | 159.0 | (218.8) | n.m. |
| Petrol 2 | 157.9 | 117.8 | 34.0% |
| Significant items 1 (before tax) | – | (3,062.6) | n.c. |
| EBIT/(LBIT) discontinued operations (after significant items 1) | 316.9 | (3,163.6) | n.m. |
| Group EBIT/(LBIT) continuing and discontinued operations (after significant items 1) | 2,642.9 | (1,668.7) | n.m. |
GROUP PROFIT AND LOSS FOR THE 52 WEEKS ENDED 25 JUNE 2017
| FY17 52 weeks $M |
FY16 52 weeks $M |
Change | ||
| Continuing operations – before significant items1 | ||||
| Earnings before interest, tax, depreciation, amortisation and rent (EBITDAR) | ($m) | 5,397.9 | 5,395.2 | 0.1% |
| Rent | ($m) | (2,034.3) | (1,963.9) | 3.6% |
| Earnings before interest, tax, depreciation and amortisation (EBITDA) | ($m) | 3,363.6 | 3,431.3 | (2.0%) |
| Depreciation and amortisation | ($m) | (1,037.6) | (985.3) | 5.3% |
| EBIT | ($m) | 2,326.0 | 2,446.0 | (4.9%) |
| Net financial expenses | ($m) | (193.6) | (245.6) | (21.2%) |
| Income tax expense | ($m) | (650.4) | (677.2) | (4.0%) |
| NPAT | ($m) | 1,482.0 | 1,523.2 | (2.7)% |
| Non-controlling interests | ($m) | (59.9) | (47.4) | 26.4% |
| NPAT from continuing operations attributable to equity holders of the parent entity (before significant items1) | ($m) | 1,422.1 | 1,475.8 | (3.6)% |
| NPAT/(NLAT) from discontinued operations attributable to equity holders of the parent entity (before significant items1) | ($m) | 111.4 | (82.8) | n.m. |
| Significant items1 after tax attributable to equity holders of the parent entity from: | ||||
| Continuing operations | ($m) | – | (749.5) | n.c. |
| Discontinued operations | ($m) | – | (1,878.3) | n.c. |
| NPAT/(NLAT) attributable to equity holders of the parent entity | 1,533.5 | (1,234.8) | n.m. | |
| MARGINS – continuing operations before significant items1 | ||||
| Gross profit | (%) | 28.71 | 28.36 | 35 bps |
| Cost of doing business | (%) | 24.52 | 23.78 | 74 bps |
| EBIT | (%) | 4.19 | 4.57 | (38) bps |
| EARNINGS PER SHARE (EPS) AND DIVIDENDS | ||||
| Weighted average ordinary shares on issue | (million) | 1,283.9 | 1,263.5 | 1.6% |
| Basic EPS– from continuing operations: | (cents) | |||
| Before significant items1 | (cents) | 110.8 | 116.8 | (5.1)% |
| After significant items1 | (cents) | 110.8 | 57.5 | 92.7% |
| Diluted EPS – from continuing operations: | ||||
| Before significant items1 | (cents) | 110.5 | 116.8 | (5.4)% |
| After significant items1 | (cents) | 110.5 | 57.5 | 92.2% |
| Interim dividend per share | (cents) | 34.0 | 44.0 | (22.7)% |
| Final dividend per shareǂ | (cents) | 50.0 | 33.0 | 51.5% |
| Total dividend per share | (cents) | 84.0 | 77.0 | 9.1% |
ǂ Final 2017 dividend payable on 6 October 2017 will be fully franked.
n.c. Not comparable
n.m. Not meaningful
- There were no significant items recognised in FY17.
In FY16, total significant items of $4,013.7 million before tax ($2,627.8 million after tax attributable to equity holders of the parent entity) were recognised. Details of these costs have been provided in Note 1.4 of the Financial Report. Where noted, profit and loss items have been adjusted to reflect these significant items. - In line with the classification of Petrol as a discontinued operation, the financial performance and operating metrics previously disclosed under ‘Australian Food and Petrol’ has been split to disclose Australian Food separately from Petrol in this announcement. Funds employed and ROFE have also been separately presented for Endeavour Drinks.
- Return on funds employed (ROFE) is calculated as EBIT before significant items for the previous 12 months as a percentage of average (opening, mid and closing) funds employed. This methodology has been adopted for FY17 and FY16. In previous reporting periods, ROFE was calculated as EBIT before significant items for the reporting period as a percentage of average (opening and closing) funds employed. Lease adjusted ROFE adjusts funds employed for the present value of future lease obligations and EBIT for the implied interest on those obligations.
- Growth for New Zealand Food is quoted in New Zealand dollars.
- Operating cash flow as a percentage of group net profit after tax before depreciation and amortisation.
- Group earnings before interest, tax, depreciation, amortisation and rent (EBITDAR) divided by rent and interest costs. Rent and interest costs include capitalised interest but exclude foreign exchange gains/losses and dividend income.
- The credit ratings referred to in this document have been issued by a credit rating agency which holds an Australian Financial Services Licence with an authorisation to issue credit ratings to wholesale clients only. The credit ratings in this document are published for the benefit of Woolworths Group’s debt providers.