The Woolworths Group Ltd (ASX: WOW) share price is up 1% after the company announced FY27 first quarter sales of $19.4 billion.
Woolworths is a large supermarket business with locations across Australia and New Zealand. It also has business-to-business (B2B) offerings (including PFD), BIG W, Petstock, retail media and more.
FY27 first-quarter sales
The company reported that total first-quarter sales were up 4.7% to $19.4 billion.
Let’s look at some of the individual segments.
Within that figure, the Australian food division grew sales by 6.9%. It said that delivery e-commerce sales rose by 21.6% to $1.6 billion and pick-up e-commerce sales rose 18.3% to $1.1 billion, showing the power of its digital offering and convenience. Woolworths supermarket store-originated sales grew 4.3%.
Interestingly in this inflationary world, Woolworths’ supermarket change in average prices, excluding tobacco, showed a 0.7% decline. The revenue growth came from more transactions and more items per basket.
New Zealand food grew sales by 2.9% to NZ$2.25 billion in NZD terms, but it was a decline of 6.4% to $1.85 billion in Australian dollar terms. New Zealand saw a 19.1% increase of other revenue to NZ$225 million, which includes franchise and export sales.
Australian B2B sales rose by 4.4% to $1.6 billion. PFD was the core driver of this growth.
W Living revenue fell by 0.7% to $1.38 billion. BIG W revenue dropped 0.9% to $1.1 billion as it lowered prices for customers and there was also an increase in own-brand penetration. Petstock sales rose 6.1% to $253 million as it opened five net new retail stores and four franchise stores, as well as e-commerce growth of 24.7%. Own and exclusive brand sales increased 16.6%. Petstock brands continue to roll out into Woolworths supermarkets.
Outlook for the Woolworths share price
The company said that in October to date, Woolworths supermarket sales were broadly in line with the first quarter after the Ooshies trading. It said it’s committed to make Christmas “special and affordable” for customers with hundreds of good value festive products.
Woolworths continue to be a solid growth in an uncertain environment, so I’d be happy if I were shareholder.
However, it’s not growing quickly, so I’m looking for other ASX dividend shares with more potential than a 5% growth rate.
