Woolworths posts $1.14bn profit in cost-of-living crisis - but CEO says it’s not thanks to rising shelf prices

Consumer NZ has expressed concern over Woolworths' ability to bank a $163 million profit while simultaneously spending $400 million on store refreshes. The supermarket chain reported its results for the year ending June, with New Zealand sales up 2.5% to $8.49 billion. However, earnings dropped in the second half of the year, attributed to customers seeking savings and operational model changes.

Woolworths' earnings before interest and tax in New Zealand were $163 million, an 8.8% increase from the previous year. The company emphasized the need for a sustainable and efficient business model in a highly competitive environment, ranking 13th out of 13 in profitability according to the Commerce Commission's recent Grocery Report.

Consumer NZ chief executive Jon Duffy expressed his disappointment, stating that the situation feels wrong for many New Zealand shoppers, especially those struggling to afford groceries. The healthy choices for New Zealanders are being squeezed by high prices, with more than a third of Kiwis regularly or very often stretching their food budget and 30% buying less fresh or whole foods due to cost concerns.

Woolworths has taken steps to absorb costs and shield customers from higher prices, but this profit despite the cost of living crisis is seen as unjust by the organization.