Insights

How did the Woolworths (ASX:WOW) share price perform last earnings season?

The Woolworths share price closed higher following 1H results in February, with the company delivering strong sales growth across all business segments.
The post How did the Woolworths (ASX:WOW) share price perform last earnings season? appeared first on The Motley Fool Australia. –

The Woolworths Group Ltd (ASX: WOW) share price has been trending strongly, marking an all-time record high of $44.06 on Friday 20 August.

The supermarket sector has likely benefited from recent lockdowns, driving an increase in in-house consumption.

According to the Australian Bureau of Statistics, the latest Australian retail turnover figures for June flag a 1.8% month-on-month decrease. Within those figures, food retailing rose 1.5%, supported by subgroups including supermarkets and grocery stores, other specialised food retailing, and liquor retailing.

A similar narrative occurred during the February earnings season, with localised COVID-19 outbreaks driving volatility in business.

Let’s take a look at how the Woolworths share price performed following its 1H FY21 results.

How did Woolworths perform in 1H FY21?

Following the release of its 1H FY21 results in February, the Woolworths share price closed 1.05% higher at $33.46.

The company delivered strong sales growth across all business segments – with the exception of hotels – with record Christmas trading. Highlights include:

Group sales up 10.6% to $35,845 million
eCommerce sales surging 77.9% to $2,937 million
Group earnings before interest and tax increased 10.5% to $2,092 million
Group net profit after tax up 15.9% to $1,135 million
Dividend per share increasing 15.2% to 53 cents per share

Management flagged a moderation in sales for the rest of the financial year, saying, “we expect sales to decline over the March to June period compared to the prior year in all our businesses.”

“However, in parallel, we also expect COVID-related costs to be materially below the prior year, subject to no further widespread prolonged lockdowns.”

The topic of moderating sales would emerge in Woolies third-quarter update on 29 April, where the company flagged a 0.4% increase in group sales to $16,566 million. The Woolworths share price would tumble 3.86% to $33.72 on the day of the announcement.

Woolworths share price snapshot

The Woolworths share price has rallied 22.1% year to date.

Shares in the supermarket giant have performed strongly following the $10 billion demerger of its Endeavour drinks business in June.

The demerger will return $1.6 billion to $2 billion in cash to Woolworths shareholders via dividends. This could be something to keep an eye out for in the company’s upcoming FY21 result.

The post How did the Woolworths (ASX:WOW) share price perform last earnings season? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Woolworths right now?

Before you consider Woolworths, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woolworths wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

How does the Woolworths (ASX:WOW) dividend compare to its sector?
Woolworths (ASX:WOW) share price slides despite new Uber Eats trial
ASX 200 Weekly Wrap: Miners drag ASX back to earth

August has been a great month so far for the Woolworths (ASX:WOW) share price
Should you buy Woolworths (ASX:WOW) shares in August 2021 for the dividend yield?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!