Woolworths and Super Cheap Auto post results despite downturn

Supermarket giant Woolworths and DIY retailer Supercheap Auto have shrugged off concerns about the economic environment to post strong profit and sales growth.

Wooloworths revealed this morning that its full year sales had growth of 7.5% for $49.6 billion in 2008-09.

Food and liquor sales rose 9.6 % to $32.8 billion and by 7.4% on a like-for-like basis. The company’s recent results were even more impressive: in the fourth quarter, sales from food and liquor were up 9.5%, or 7.9% like-for-like.

“Despite the global economic turmoil, 2009 has been a successful year with solid results across our business overall,” Woolworths’ chief executive Michael Luscombe said in a statement.

“Continued solid sales growth in food retailing and especially in discretionary areas like apparel, consumer electronics and homewares, highlights the underlying strength of the Australian economy in these times.”

Another impressive result has been recorded by Supercheap Auto, which operates the Supercheap Auto discount DIY chain, outdoor goods chain BCF and cycling chain Goldcross.

Like-for-like sales at SCA were up 7.3% in 2008-09, while sales at BCF leapt 12.5%.

The company now expects net profit for the period will be $32 million, an increase of 25% on the previous year.

“The group’s performance highlights the benefit of our continued investment in growing our businesses,” chief executive Peter Birtles said in a statement.

“During the year, we have opened 23 new stores, refurbished a further 31 Supercheap Auto stores, merchandised a high number of new products, improved our supply chain operations and continued to invest in our team members.”