How does the Woolworths (ASX:WOW) earnings result compare to Coles (ASX:COL)?

We take a look at how the supermarket giants’ figures stack up against each other
The post How does the Woolworths (ASX:WOW) earnings result compare to Coles (ASX:COL)? appeared first on The Motley Fool Australia. –

Just yesterday, Woolworths Group Ltd (ASX: WOW) released its FY21 full-year results to the ASX. The retail conglomerate reported a busy year that saw its divestment from liquor and hotels business, Endeavour Group Ltd (ASX: EDV).

Meanwhile, Coles Group Ltd (ASX: COL) delivered its FY21 earnings on 18 August, announcing a solid performance despite continued disruptions. Its share price also edged higher on the result for the following days.

Comparing the financial figures of two companies can give investors a clearer picture of how the industry is travelling.

It’s no secret that COVID-19 has positively impacted the grocery market. However, all eyes are now on both supermarket giants to see if they can continue their strong growth in a post-pandemic world.

Below, we take a look at how the Woolworths earnings result stacks up against Coles’ numbers.

A recap on the Woolworths earnings result

Here’s a summary of the financial details that Woolworths posted for the 6 months ending 30 June 2021.

Group sales of $67,278 million, up 5.7% on the prior corresponding period;
Group earnings before interest and tax (EBIT) of $3,663 million, up 13.7%;
Group net profit after tax (NPAT) of $1,972 million, up 22.9%; and
Final dividend of 55 cents per share, up 14.6%.

The robust result came as the company noted customers shopped more frequently but with small basket sizes. In addition, 23 new stores were opened up, bringing the total network to 1,076 stores.

In early trade on Friday, the Woolworths share price is down 0.93% to $40.61.

How does this compare to Coles?

Coles revealed its own FY21 numbers, highlighting the surging grocery market. Let’s see how it stacked up against Woolworths’ earnings.

Sales revenue of $38,562 million, up 3.1% on the prior corresponding period;
Earnings before interest and tax (EBIT) of $1,873 million, up 6.3%;
Net profit after tax of $1,005 million, up 7.5%; and
Final dividend of 61 cents per share, up 6.1%.

Coles recorded a bumper year driven by strategic initiatives that were implemented to allow customers to spend more time at home during COVID-19. This included the continued roll-out of “Click & Collect”, the launch of a digital catalogue, and “Fresh Produce Easy Ordering”.

After the results announcement on 18 August, the company’s shares rallied to a record high of $18.94. However, investors decided to take profit off the table, sending its shares lower. At the time of writing, Coles shares are swapping hands for $17.69, up 0.28% on yesterday’s closing price.

Comparing Woolworths’ earnings with those of its rival, there are similarities in terms of revenue growth. Although when it comes to EBIT and NPAT, Woolworths is far ahead of Coles in both numbers and percentage increases.

Woolworths share price snapshot

It has been a blissful 12 months for Woolworths shares, posting a gain of more than 18% over the period. The company’s share price reached an all-time high of $42.66 last week, before also dipping lower due to profit-taking.

Based on today’s price, Woolworths has a market capitalisation of $51.9 billion, with approximately 1.2 billion shares on issue.

The post How does the Woolworths (ASX:WOW) earnings result compare to Coles (ASX:COL)? 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

The ASX reporting wrap-up: A2 Milk, Woolworths, Appen

The Woolworths (ASX:WOW) dividend has jumped 15%
Woolworths (ASX:WOW) share buyback: here’s what you need to know
Woolworths (ASX:WOW) share price gains on 23% profit surge
Woolworths (ASX:WOW) share price on watch following FY21 results

Motley Fool contributor Aaron Teboneras 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 owns shares of and has recommended COLESGROUP DEF SET. 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!