Woolworths Group - 2024 Annual Results and Financial Highlights
WOW (WOW) Share Update August 2024 Tuesday 27th
Woolworths Group Reports 2024 Annual Results with Significant Impairments
Woolworths Group has released its 2024 Annual Report, detailing the financial performance for the year ended 30 June 2024. The report includes significant impairments and dividend announcements.
Instant Summary:
- Revenue increased by 5.6% to $67,922 million.
- Profit after tax before significant items decreased by 0.6% to $1,711 million.
- Profit after tax including significant items dropped by 93.3% to $108 million.
- Significant impairments include $1,505 million for New Zealand Food and $209 million for loss of influence over Endeavour Group.
- Declared a final dividend of 57 cents per share and a special dividend of 40 cents per share.
Financial Performance
Woolworths Group reported a revenue increase of 5.6%, reaching $67,922 million for the year ended 30 June 2024. However, profit after tax before significant items saw a slight decline of 0.6%, totaling $1,711 million. The profit after tax including significant items experienced a dramatic drop of 93.3%, amounting to $108 million.
The significant items impacting the current period include a $1,505 million impairment for New Zealand Food and a $209 million loss from the reduction of significant influence over Endeavour Group Limited. These were partially offset by a $107 million gain from the revaluation of put option liabilities over non-controlling interests and an income tax benefit of $4 million.
Dividends
Woolworths Group declared an interim dividend of 47 cents per share, paid on 11 April 2024, and a final dividend of 57 cents per share declared on 28 August 2024. Additionally, a special dividend of 40 cents per share was declared on the same date. All dividends are fully franked at a 30% tax rate. The record date for determining entitlement to the final and special dividends is 4 September 2024, with payment expected on or around 30 September 2024.
Dividend Reinvestment Plan
The Dividend Reinvestment Plan (DRP) remains active, allowing eligible shareholders to participate in the DRP for all or part of their shareholding. There is no DRP discount applied, and no limit on the number of shares that can participate. Shares will be allocated based on the average daily volume-weighted average market price of ordinary shares traded on the ASX over ten trading days starting on 6 September 2024. The last date for receipt of election notices for the DRP is 5 September 2024.
The significant impairments, particularly in New Zealand Food and the loss of influence over Endeavour Group, have substantially impacted Woolworths Group's profitability. This will likely affect the company's stock price as investors react to the reduced profit figures. The announcement of dividends, including a special dividend, may help to maintain investor confidence to some extent.
Investor Reaction:
Analysts are likely to focus on the significant impairments and their long-term impact on Woolworths Group's financial health. While the revenue growth is positive, the substantial drop in profit after tax including significant items may cause concern among investors. The declared dividends might provide some reassurance.
Conclusion:
Investors should closely monitor Woolworths Group's strategic response to the impairments and assess the potential long-term impacts on their portfolios. The company's ability to navigate these challenges will be crucial in maintaining investor confidence.