Aussie Woolworths profits up 12.8 percent to $1.5b

Australia's biggest retailer Woolworths made light of the economic slowdown to post a 12.8 percent jump in annual profits to 1.8 billion Australian dollars (1.5 billion US) on Thursday.

The supermarket giant said sales were up 7.5 percent to 49.6 billion dollars for the 12 months to June 30 and predicted further profit growth of up to 11 percent in the current financial year.

"This solid result was delivered in a difficult global economic climate and reflects increased acceptance of our retail offer underpinned by continued investment in all our businesses," said managing director and chief executive Michael Luscombe. Profits were slightly above analyst forecasts and follow the announcement this week of plans to break into the hardware sector in a major challenge to rival Wesfarmers.

Woolworths said it would add up to 25 new branches a year in Australia and at least three in New Zealand, expand its Dan Murphy's liquor chain and acquire hotels selectively.

Earnings per share rose 11.7 percent to 1.5 dollars with a final dividend of 56 cents a share. Woolworths' share price was up 0.1 percent to 28.8 dollars in early trade.

"The year has seen significant global challenges that will continue in the near term," said chairman James Strong.

"Woolworths is well positioned going forward and will continue to invest to develop both core and new business opportunities in order to enhance shareholder value."

Woolworths on Tuesday announced a joint venture with US home improvement chain Lowes and an 88 million dollar takeover offer for Australian hardware distributor Danks.

The firm plans to acquire 150 sites over five years in a challenge to market leader Bunnings, owned by Wesfarmers, which also owns Woolworths' main supermarket rival Coles. SYDNEY, (AFP)