Australian-owned New Zealand supermarket chain, Countdown, has increased its annual earnings by 4.2 per cent, despite trading in subdued conditions.
The chain, owned by Australia’s Woolworths, announced that pre-tax earnings were $309.8 million for the 52 weeks ending 29 June 2014, before one-off items.
Earnings in the previous 53 week period were $302.7 million.
Sales rose from $5.737 billion in the 52 weeks ending 29 June 2014, compared with $5.749 billion in the previous 53 week period, a rise of 1.6 per cent.
The comparable sales growth of 0.3 per cent reflected the ongoing subdued grocery market conditions and price deflation across a number of key categories, said Woolworths.
The gross margin in the year ending 29 June 2014 widened by 37 basis points, to 23.67 per cent.
Online sales from Countdown.co.nz increased by more than 20 per cent in FY14.
Future growth is supported by continued site functionality and service improvements, including 15 new online fulfilment stores.
During FY14 the number of Countdown stores in NZ increased to 171 with the opening of five new stores.
In a statement, Woolworths Limited CEO, Grant O’Brien, said “Countdown Supermarkets delivered a pleasing result despite the subdued New Zealand grocery market conditions. The transformation of this business is well underway with its focus on delivering enhanced value to customers, most notably via the ‘Price Lockdown’ campaign which has resonated strongly with customers.”
