Foodland rings up record sales

By Phil Boeyen, ShareChat Business News Editor

Thursday 14th March 2002

Improved trading at Farmers' department stores and Progressive supermarkets have helped Perth-based retailer Foodland Associated (NZSE: FAL) to lift first half profit by 119% to A$47.3 million.

The company says each of its divisions contributed to the improved interim result and it has raised its first half dividend by 29% to A33.5 cents a share accordingly. Total sales rose 26% to an interim record of A$2.142 billion.

In New Zealand the Farmers' chain improved earnings before interest and tax by 29% to A$19.5 million with sales up 13% to A$302 million.

"Farmers' performance was encouraging and lifted in response to management initiatives to improve brand awareness, strengthen business controls and improve profitability while expanding the store network," says group MD, Trevor Coates.

The company's NZ supermarket operator, Progressive, reported a 37% Ebit rise in to A$26.9 million, which Mr Coates says is best half-year contribution the division has made to the group result. Sales rose 20% to A$748.6 million.

Progressive operates the Foodtown, Countdown and Three Guys chains in New Zealand and is also interested in acquiring the Woolworths NZ business.

In Australia the Action supermarkets Ebit was up 47.5% in the six months ended December to A$17.4 million and the FAL Wholesale division lifted its result 11.5% to A$24.2 million.

Mr Coates says the latest result also includes a small positive contribution from Action's 40 new supermarkets on Australia's east coast, which were being restocked and refurbished during the half.

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