Woolworths Group Ltd · ASX:WOW
Woolworths — H1 F24 Earnings Presentation
48 slides from Woolworths's earnings presentation, Feb 21, 2024
Slide 1: Half-Year Results Presentation (ASX announcement)
21 February 2024 ASX Market Announcements Office Australian Securities Exchange 20 Bridge Street Sydney NSW 2000 For personal use only Half-Year Results Presentation Attached for release to the market is the Half-Year Results Presentation for the period ended 31 December 2023. Authorised by: Kate Ea
Slide 2: Woolworths Group F24 Half-Year Results
Woolworths Group Half-Year Results 2024 1 Woolworths Group F24 Half-Year Results For personal use only For the 27 weeks ended 31 December 2023 Brad Banducci, Managing Director and CEO Stephen Harrison, CFO 21 February 2024
Slide 3: Acknowledgement of Country
Woolworths Group Half-Year Results 2024 2 Acknowledgement of Country For personal use only Woolworths Group acknowledges the many Traditional Owners of the lands on which we operate and pay our respects to their Elders past and present. We recognise their strengths and enduring connection to lands,
Slide 4: Contents
Woolworths Group Half-Year Results 2024 3 Contents For personal use only H24 Group summary and progress 4 Brad Banducci Group financial results and capital management 17 Stephen Harrison Business performance update 26 Current trading and outlook 43 Brad Banducci We create better experiences together
Slide 5: H24 summary
Woolworths Group Full Year Results Half-Year Results2023 2024 4 H24 summary WooliesX driving Group growth; focus on delivering value for customers in H2 For personal use only Mixed Group performance in H1; solid results from Australian Food and Australian B2B somewhat offset by the impacts of a very
Slide 6: Strong Customer Care metrics and improved Availability; more to do on Value for Money
Woolworths Group Half-Year Results 2024 5 Strong Customer Care metrics and improved Availability; more to do on Value for Money For personal use only Customer VOC NPS Group VOC NPS 50 Care VOC Availability VOC -1 pt vs. Dec’22 82% 76% -1 pt vs. Dec’22 +4 pts vs. Dec’22 62 62 60 60 60 52 50 40 Care V
Slide 7: Lower inflation in the half with deflation in Fruit & Veg and Meat
Woolworths Group Half-Year Results 2024 6 Lower inflation in the half with deflation in Fruit & Veg and Meat and easing price increases in Long Life For personal use only Woolworths Food Retail average price change Total Long Life Total Fresh Total Food 2.3% 1.3% 0.1% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q
Slide 8: Helping our customers spend less with more planned for H2
Woolworths Group Half-Year Results 2024 7 Helping our customers spend less with more planned for H2 For personal use only 3,000+ Seasonal and Average Own 5m+ members Launch of Over $80m Over 30,000 Launched BIG W 150+ own brand products on Christmas Prices Brand1 selling purchased a product Best Uni
Slide 9: Our Connected Group
Woolworths Group Half-Year Results 2024 8 Our Connected Group For personal use only Woolworths Retail Woolworths Food Our cornerstone B2C retail Company food businesses, famous for Delivering brands, products and capabilities that deliver value good food, good prices, good acts and always convenient
Slide 10: Strong eCom growth delivered through improved Same Day convenience
Woolworths Group Half-Year Results 2024 9 Strong eCom growth delivered through improved Same Day convenience For personal use only Woolworths Food Retail total eCom and Same Day eCom sales penetration % eCom Same Day eCom sales growth sales growth sales 5-yr eCom 21.3% 78% CAGR penetration vs. H1’23
Slide 11: Everyday platform driving increased customer engagement
Woolworths Group Half-Year Results 2024 10 Everyday platform driving increased customer engagement For personal use only Growing members and member engagement, building depth of insights and delivering better value for our customers Everyday Rewards Members o Strong member engagement; weekly active
Slide 12: Strategic investment in adjacencies starting to deliver
Woolworths Group Half-Year Results 2024 11 Strategic investment in adjacencies starting to deliver Retail Business For personal use only Platforms Digital, technology and analytics enabled platform businesses H1 F24 sales growth of 14.6% driving incremental Next Gen Promotions tool continuing to del
Slide 13: Evolving our marketplace strategy
Woolworths Group Half-Year Results 2024 12 Evolving our marketplace strategy For personal use only • Launched Woolworths MarketPlus in Nov 2023 • Powering 3P tech platform and sellers for the Group • H1 F24 overall GMV1 up 7.9% • Rewards members redeeming on MyDeal site since Nov 2023 • 400,000+ lin
Slide 14: Progressing our multi-year supply chain transformation
Woolworths Group Half-Year Results 2024 13 Progressing our multi-year supply chain transformation 2019 2020 2021 2022 2023 2024 2025 For personal use only Practical completion in H1 F24; two years after sod turn Moorebank National Melbourne Fresh DC, Vic Heathwood Chilled & DC, NSW opening commissio
Slide 15: Woolworths New Zealand transformation progressing to plan; more to do in BIG W
Woolworths Group Half-Year Results 2024 14 Woolworths New Zealand transformation progressing to plan; more to do to scale priority initiatives in BIG W For personal use only Progress 34 stores rebranded in H1 F24 with positive customer sentiment Clothing transformation underway (curated range, size-
Slide 16: Progress across our sustainability pillars in H24
Woolworths Group Half-Year Results 2024 15 Progress across our sustainability pillars in H24 For personal use only 1.44 People Making a positive Group Severity Rate 52 $46.9m $6.3m 4% from F23 Mini Woolies stores Deployed via the Future of change to the future of of direct community our people, ou
Slide 17: Contents
Woolworths Group Half-Year Results 2024 16 Contents H24 Group summary and progress For personal use only 4 Brad Banducci Group financial results and capital management Stephen Harrison Group financial results Key balance sheet metrics 17 Capital management framework Cash flow summary Capital expendi
Slide 18: Group financial results and capital management
For personal use only Woolworths Group Half-Year Results 2024 17 Group financial results and capital management
Slide 19: H24 results summary
Woolworths Group Half-Year Results 2024 18 H24 results summary For personal use only Group sales Group EBIT ($ million) 4.4% ($ million) 3.3% 34,635 vs. H1 F23 vs. H1 F23 1,692 33,169 1,637 H1 F24 H1 F23 H1 F24 H1 F23 Group NPAT1 Group basic EPS1 ($ million) 2.5% ($ cents) 2.0% vs. H1 F23 vs
Slide 20: Group trading performance
Woolworths Group Half-Year Results 2024 19 Group trading performance For personal use only Group sales and EBIT $ MILLION H24 SALES CHANGE H24 EBIT CHANGE Before significant items Australian Food 25,899 5.4% 1,570 9.9% Australian B2B1 2,323 2.8% 71 45.7% New Zealand Food 3,858 4.2% 65 (40.6)% New Ze
Slide 21: Average inventory and ROFE improved on the prior periods
Woolworths Group Half-Year Results 2024 20 Average inventory and ROFE improved on the prior periods For personal use only Average inventory days1 29.7 • Average inventory days in line with prior year 29.5 29.7 29.6 • Lower average inventory days in Australian B2B and New Zealand Food. BIG W average
Slide 22: Woolworths Group capital management framework
Woolworths Group Half-Year Results 2024 21 Woolworths Group capital management framework For personal use only Strong growth One of Australia’s Leading market Defensive opportunities in Strong underlying most trusted position in Food & characteristics eCom and cash flow brands Everyday Needs through
Slide 23: Cash flow
Woolworths Group Half-Year Results 2024 22 Cash flow For personal use only $ MILLION H24 H231 CHANGE Group EBITDA before significant items 3,079 2,924 5.3% Increase in inventory more than offset by payables growth Working capital and non-cash movements 327 (49) n.m. 31.1 Cash from operating activiti
Slide 24: Operating capex broadly in line with prior year
Woolworths Group Half-Year Results 2024 23 Operating capex broadly in line with prior year For personal use only Sustaining capex $ MILLION H24 H23 $ MILLION H24 H23 702 645 SIB 158 157 Sustaining capex Renewals 193 185 Growth capex 205 283 Supply chain 125 105 Operating capex 907 928 IT 131 129 Pro
Slide 25: Dividends and funding
Woolworths Group Half-Year Results 2024 24 Dividends and funding For personal use only 47 cps interim dividend1 Debt maturity profile ($m)3,4 Dividends (cents per share) 1,200 104 92 800 58 53 400 39 46 47 - F22 F23 F24 F24 F25 F26 F27 F28 F29 F30 F31 F32 F33 Interim Final Capital markets debt Bank
Slide 26: Contents
Woolworths Group Half-Year Results 2024 25 Contents For personal use only H24 Group summary and progress 4 Brad Banducci Group financial results and capital management 17 Stephen Harrison Business performance update 26 Current trading and outlook 43 Brad Banducci
Slide 27: For personal use only
For personal use only Woolworths Group Half-Year Results 2024 26
Slide 28: Australian Food
Woolworths Group Half-Year Results 2024 27 Australian Food H24 H231 CHANGE Total sales ($m) 25,899 24,560 5.4% For personal use only EBITDA ($m) 2,531 2,317 9.2% EBIT ($m) 1,570 1,428 9.9% Gross margin (%) 28.9 27.9 96 bps CODB (%) 22.8 22.1 72 bps EBIT to sales (%) 6.1 5.8 24 bps ROFE (%) 31.1 26.7
Slide 29: Australian Food: Woolworths Food Retail
Woolworths Group Half-Year Results 2024 28 Australian Food Woolworths Food Retail (Stores and eCom) For personal use only H24 H231 CHANGE Total sales ($m) 25,648 24,371 5.2% EBITDA ($m) 2,454 2,272 8.0% EBIT ($m) 1,534 1,417 8.2% EBIT to sales (%) 6.0 5.8 17 bps Sales per square metre ($) 19,304 18,
Slide 30: Progress against strategic priorities
Woolworths Group Half-Year Results 2024 29 Progress against strategic priorities Caring for our communities Team safety Trade partners Convenient and connected experiences For personal use only Build advocacy for Today’s Fresh Food People 10+ million meals donated Opened 50th 40,000+ team members co
Slide 31: Woolworths progressing network initiatives to create better customer experiences
Woolworths Group Half-Year Results 2024 30 Woolworths 360 progressing network initiatives to create better customer experiences For personal use only Progressed roll out of Proactive Services, an in-house Launched first stand-alone Direct to boot Opened 9 net new stores and completed 23 renewals tro
Slide 32: Australian Food: WooliesX
Woolworths Group Half-Year Results 2024 31 Australian Food WooliesX (including eCom) H24 H231 CHANGE For personal use only Total sales ($m) 4,087 3,206 27.5% DAP & EBIT before depreciation and amortisation ($m) 260 145 78.9% DAP & EBIT ($m) 168 72 132.3% DAP & EBIT to sales (%) 4.1 2.3 186 bps SALES
Slide 33: WooliesX H24 highlights
Woolworths Group Half-Year Results 2024 32 WooliesX H24 highlights idX & Cartology eComX EverydayX For personal use only Record levels of digital traffic Record levels of B2C active customers Provided members with even more value +20% +23% 1m +14% 9.4m +8% Group traffic active eCom increase in B2C F
Slide 34: Australian B2B
For personal use only Woolworths Group Half-Year Results 2024 33 Australian B2B
Slide 35: Australian B2B
Woolworths Group Half-Year Results 2024 34 Australian B2B For personal use only H24 H231 CHANGE Sales ($m) 2,323 2,258 2.8% B2B Food (Woolworths Food Company 3rd party) 1,653 1,627 1.5% B2B Supply Chain (Primary Connect 3rd party) 670 631 6.2% EBITDA ($m) 133 101 31.2% EBIT ($m) 71 49 45.7% EBIT to
Slide 36: H24 highlights: B2B
Woolworths Group Half-Year Results 2024 35 H24 highlights For personal use only B2B Food B2B Food PFD sales growth driven by Greenstock improved end-to-end WFC won 105 Australian food customer growth, a recovery in the sourcing across the meat supply awards, including 45 Royal airline and cruise ind
Slide 37: For personal use only
For personal use only Woolworths Group Half-Year Results 2024 36
Slide 38: New Zealand Food
Woolworths Group Half-Year Results 2024 37 New Zealand Food NZD ($) H24 H23 CHANGE Total sales ($m) 4,172 4,079 2.3% For personal use only EBITDA ($m) 242 286 (15.2)% EBIT ($m) 71 122 (41.7)% Gross margin (%) 22.6 22.8 (18) bps CODB (%) 20.9 19.8 110 bps EBIT to sales (%) 1.7 3.0 (128) bps Sales per
Slide 39: H24 highlights: New Zealand Food
Woolworths Group Half-Year Results 2024 38 H24 highlights For personal use only Living our purpose and transforming our brand 34 stores +3 pts +2 pts Progressed roll out of Safer Stores program rebranded to Woolworths improved VOT Store-controllable to improve team and in H1 F24; 40+ stores advocacy
Slide 40: For personal use only
For personal use only Woolworths Group Half-Year Results 2024 39
Slide 41: BIG W
Woolworths Group Half-Year Results 2024 40 BIG W H24 H23 CHANGE Total sales ($m) 2,595 2,708 (4.1)% For personal use only EBITDA ($m) 163 239 (32.1)% EBIT ($m) 54 134 (60.0)% Gross margin (%) 30.5 31.9 (143) bps CODB (%) 28.5 27.0 146 bps EBIT to sales (%) 2.1 5.0 (289) bps Sales per square metre ($
Slide 42: H24 highlights: BIG W
Woolworths Group Half-Year Results 2024 41 H24 highlights For personal use only We make a real >40% of team multi-skilled Donated ~42,000 Christmas Donated $393,000 to difference for to support more gifts to local charity partners hospital and research families meaningful hours and as part of the BI
Slide 43: Contents
Woolworths Group Half-Year Results 2024 42 Contents For personal use only H24 Group summary and progress 4 Brad Banducci Group financial results and capital management 17 Stephen Harrison Business performance update 26 Current trading and outlook 43 Brad Banducci
Slide 44: Current trading and outlook
Woolworths Group Half-Year Results 2024 43 Current trading and outlook Delivering value for customers remains our number one priority For personal use only Expect to make continued progress on strategic agenda in H2; however, outlook has become more challenging. Group sales have continued to moderat
Slide 45: Glossary
Woolworths Group Half-Year Results 2024 44 Glossary Active eCom customers Customers that have made a purchase online in the last four weeks For personal use only AGW Australian Grocery Wholesalers Pty Limited B2B Business to business B2C Business to customer CAGR Compound annual growth rate Cash rea
Slide 46: Glossary continued
Woolworths Group Half-Year Results 2024 45 Glossary continued PC+ Primary Connect third-party logistics Pick up A service which enables collection of online shopping orders at a store or at select locations For personal use only Renewal A total store transformation focused on the overall store envir
Slide 47: Glossary continued
Woolworths Group Half-Year Results 2024 46 Glossary continued Other non-IFRS measures used in describing the business performance include: For personal use only • Earnings before interest, tax, depreciation and amortisation (EBITDA) • Change in average prices • Cash flow from operating activities be
Slide 48: Disclaimer
Woolworths Group Half-Year Results 2024 47 Disclaimer This presentation contains summary information about Woolworths Group Limited (Woolworths Group) and its activities current as at the date of this presentation. It is sourced For personal use only from and should be read in conjunction with Woolw