25 Aug 2012

Lower profit announced by Woolworths

6:31 am on 25 August 2012

Woolworths on Friday announced its first drop in full-year profit since 1999. Net profit for the supermarket chain for the 2012 financial year fell 14.5% to $A1.8 billion.

The compant says profit from continuing operations rose 3.6% to nearly $A2.2 billion.

Last week, Wesfarmers, the owner of Coles supermarkets, announced an 11% rise in annual profit to just over $A2 billion.

Woolworths chief executive Grant O'Brien said retail conditions were the toughest he had seen in many years, but conditions seemed to be improving slightly.

The ABC reports Woolworths invested heavily in expansion over the year, opening 128 new stores.