28 Aug 2009

Supermarket earnings up

5:43 am on 28 August 2009

A reduction in costs has helped boost earnings at Woolworths supermarket operations in New Zealand.

Australia's largest supermarket operator saw its operating earnings rise 3% to $194.9 million at its New Zealand supermarkets, Foodtown, Countdown and Woolworths.

Managing director Michael Luscombe says the supermarkets are now enjoying savings from new systems and shelving, along with the benefits from its refurbishing programme.

Operating earnings rose 17% in the second half of the year.

Overall, Woolworths saw profits rise 13% to $A1.8 billion.

However, it is forecasting annual profit growth to slow to between 8% - 11% as it remains cautious about consumer spending.