Woolworths boasts $907 million in profits as customers slugged with price rises

Woolworths has posted $907 million in profits in its half-yearly results at the same time customers have been slugged with a significant rise in grocery prices amid soaring inflation.

Woolworths group, which includes supermarkets, Metro stores, and Big W, had a total $33.2 billion in sales for the first half of the 2022/23 financial year, which was a 4 per cent increase from the year before.

The supermarket giant’s total profits were $907 million, which was up 14 per cent on the year before.

Woolworths in Marrickville Metro — Woolworths recorded $907 million in profits for the half year to January 1. (Janie Barrett)

“Our first half result benefitted from a focus on improving our customer shopping experience, restoring our operating rhythm, the non-recurrence of material COVID costs in the prior year and strong seasonal trading,” Woolworths CEO Brad Banducci.

“Despite continued supply chain challenges during the half, most customer metrics improved.

“Cost-of-living pressures are being felt by our customers due to industry-wide inflation and helping all our customers get their Woolies worth remains our number one priority.”

Coles’ total revenue was $12.4 million less than Woolworths, whereas a comparison of their total profits shows Woolworths reeled in $291 million more.

Woolworths supermarket checkout — But Woolworths customers were not immune to grocery price increases. (Janie Barrett)

Customers at both stores have been slugged with price increases with food inflation rising by 7.7 per cent on average in the second quarter, which was marginally higher than the first quarter of 7.3 per cent.

Woolworths said long-life prices saw the most rises while some fruit and vegetable prices moderated as supply improved.

“In Fresh, commodity price increases in poultry and dairy products contributed to average price increases,” Woolworths said.

“Fruit & Vegetable inflation moderated somewhat in Q2 relative to Q1 as supply conditions improved.

“In Long Life, inflation was mainly driven by supplier cost price increases.”

Woolworths foreshadowed the next six to 12 months will see a challenging economic environment and cost of living pressures will continue, but has promised to continue trying to deliver affordable prices to customers.

Despite the inflationary rises in grocery costs, the supermarket giant recorded $24.4 billion in Australian food sales.