Woolworths Group has announced its Q3 sales results, including a revised profit outlook for Woolworths New Zealand to reflect a reduction in earnings in the second half.
The last quarter included the Omicron outbreak in New Zealand, which at its peak saw nearly 3000 team members away as a result of Covid, including nearly 50% of the team in Woolworths major Auckland Distribution Centres. Significant supply chain disruptions and less availability of stock for customers were also experienced.
“Putting the health and safety of our team and customers first during the Omicron outbreak was absolutely the right thing to do, and we are pleased to see that peak impacts are now behind us,” said Woolworths New Zealand Managing Director, Spencer Sonn.
While sales were steady, Covid-19 related costs increased significantly and as a result Woolworths Group has lowered its profit expectation for the New Zealand business.
Despite this profit decline, Woolworths continues to invest extensively across New Zealand including a $1 billion investment plan to upgrade and build new stores, create new jobs, strengthen supply chains, and drive digital innovation.
“We’re continuing to work hard to deliver the best value that we can for our customers and keep prices as low as possible despite the current inflationary environment and record cost increases coming through from our suppliers as they too face higher input costs, including raw materials, packaging, freight and transportation,” said Sonn.
