WOOLWORTHS AUSTRALIA RESULTS RISE

JAMES FALLON

SYDNEY, Australia (FNS) -- Woolworths Ltd. said its food retail operations had a 13.6% increase in operating profit after tax to $272 million ($362.7 million Australian) on an 11.5% rise in sales to $8.2 billion for the year ended June 25.

Currency conversions were made at the rate of $1 U.S. per $1.33 Australian.

This compares with operating profit after tax of $239.4 million on sales of $7.4 billion in the previous year.

Woolworths is Australia's largest food retailer with operations including Woolworths, Purity, Food for Less and Safeway. The group also owns the Big W and Variety chains of general merchandise stores as well as specialty retailers.

Overall, Woolworths reported a 16.7% increase in after-tax profit to $175.3 million from $150.2 million. Sales last year rose 11.4% to $9.6 billion from $8.6 billion.

Earnings per share increased 13.9% to 16.9 cents from 14.8 cents. Paul Simons, the company's chairman, said all its operations performed well "despite vigorous competition. Supermarkets, Big W and Specialty Stores each increased their market shares."

The profit and sales growth was fueled both by store openings as well as stronger sales at existing stores. Simons said same-store sales last year rose by 7.9%, well above the Australian inflation rate of 3.2%. During the year Woolworths opened 15 supermarkets, three Big W stores and 23 specialty stores.

In the current fiscal year Woolworths expects to open 15 supermarkets, six Big W stores and 20 specialty units, Simons said. Rowan Jeffs, the company's secretary, said Woolworths is well-positioned to perform in the competitive environment and with the new store openings.

Simons said sales for the first five weeks of the current fiscal year "have been relatively subdued" because of consumer uncertainty created by conflicting reports about the state of the Australian economy and the potential for an increase in interest rates.