Woolworths Group (ASX: $WOW) Half-Year Financial Report 2024

Woolworths Group Limited (ASX: $WOW) has released its Half-Year Financial Report for the period ended 31 December 2023. The report includes significant items for the current period, such as the New Zealand Food impairment of $1,505 million and loss on significant influence over Endeavour Group Limited of $209 million, partially offset by an income tax benefit of $4 million. The 2024 interim dividend is payable on or around 11 April 2024, and is not provided for as at 31 December 2023. The Dividend Reinvestment Plan (DRP) remains active, and the Company intends to purchase shares on-market and transfer these to participants on 11 April 2024 to satisfy its obligations under the DRP.

Executive Commentary on Half-Year Financial Report 2024

The trading performance of New Zealand Food continued to be impacted by a challenging economic environment and competitive landscape. Despite positive progress made during the period on the New Zealand Food transformation agenda, including improved customer metrics and sales momentum towards the end of the period, the ongoing challenging environment led to a review of the forecasts for the business for the next three years. As a result, the carrying value of New Zealand Food exceeded its recoverable amount, and a non-cash impairment of $1,505 million was recognized against goodwill within intangible assets. In addition, the Group recognized a $13 million impairment relating to property, plant, and equipment, as a result of the transformation and rebranding of Countdown stores to Woolworths New Zealand.

Summary of Half-Year Financial Report 2024

Woolworths Group (ASX: $WOW) has reported a significant impairment of $1,505 million in New Zealand Food, driven by the challenging economic environment and competitive landscape. The Company also recognized a loss on significant influence over Endeavour Group Limited of $209 million. The 2024 interim dividend is payable on or around 11 April 2024, and is not provided for as at 31 December 2023. The Dividend Reinvestment Plan (DRP) remains active, and the Company intends to purchase shares on-market and transfer these to participants on 11 April 2024 to satisfy its obligations under the DRP. The acquisition of a controlling interest in PETstock Pty Ltd (Petstock Group) subsequent to 31 December 2023 is expected to strengthen the Group's position in the specialty pet retailing market.