Thursday 5th January 2012
|Text too small?|
Insurers for Woolworths’ New Zealand supermarkets copped a bill of $27.7 million from the September 2010 and February earthquakes in Christchurch, according to its local financial statements.
The Australian retailer’s New Zealand supermarket operation booked the insurance recovery as revenue in the year ended June 26, 2011, it said in statements lodged with the Companies Office last month. That made up almost half the $64.6 million in non-operating revenue in the period, while sales rose 3.5 percent to $5.37 billion.
Woolworths took a $14.8 million hit on the earthquake from costs not covered by its insurance cover, according to the parent company’s annual report, published in September.
The local holding company, Woolworths New Zealand Group, reported net profit of $99.8 million in the year, down from $100.7 million a year earlier. The Australian parent had previously said New Zealand supermarket pre-tax earnings rose 5.1 percent to $244 million.
In November, the Reserve Bank estimated the Canterbury quakes will result in claims worth some $30 billion as local firms seek to recover costs from interrupted business, temporary accommodation, inflation and other adjustments. Government officials have forecast the quakes caused more than $20 billion of damage to property in the region, though that predates the recent swarm of temblors since Christmas.
Woolworths, which completed a nationwide rebranding of its local chain to Countdown last year, has 158 stores in New Zealand. It is battling the three Foodstuffs cooperatives that operate the Four Square, New World and Pak’nSave chains. Its annual revenue of $5.37 billion in the 2011 year compares to the combined revenue of $8.2 billion for the Auckland, Wellington and South Island Foodstuffs cooperatives.
In October, the Australian retailer said its New Zealand supermarkets boosted sales 3 percent to $1.42 billion in the 14 weeks ended Oct. 2. That accounts for about 8.9 percent of sales in Woolworths’ supermarket division and 7.7 percent of the entire group’s A$14.6 billion in revenue.
Shares in Woolworths rose 2 percent to A$25.71 in trading on the ASX yesterday.
No comments yet
MARKET CLOSE: Blue-chip stocks Meridian, A2 lead market lower
NZ dollar rises on Brexit hopes, rate cut reassessment
Three not failing, just needs a new owner - MediaWorks CEO
Major investors back new CBL class action targeting directors
Rip Curl purchase a done deal on Kathmandu proxies alone
Comvita chair Neil Craig eyes the exit once he finds a new CEO
Mercury raises guidance on increased storage, high spot prices
Eroad reports strong 3Q sales growth, eyes ASX listing
MediaWorks puts TV business on the block
NZ dollar benefits as preliminary Brexit deal improves risk appetite