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Investor Presentaiton

26 Group financial performance 27 Annual Report 2023 Woolworths Group Inventories of $3,698 million increased by $105 million compared to the prior year due to inflation on the cost of goods, better availability as supply chains recovered, and higher PFD inventory driven by revenue growth. BIG W inventory was marginally higher than the prior year. Closing inventory days decreased 0.6 days reflecting the gradual reduction in inventory holdings as supply chains normalise but average inventory days increased by 1.1 days due to inflation and increased investment in inventory over the year. Trade payables of $5,621 million increased by $405 million driven by inflation on goods purchased across all businesses, partly offset by a reduction in BIG W payables from reduced inventory purchases in Q4 to reflect lower sales. Trade, other receivables and prepayments of $1,319 million increased by $116 million largely driven by the timing of receipts and revenue growth in PFD and Quantium as well as growth in Everyday Insurance receivables. Other creditors, provisions and other liabilities of $4,559 million increased by $201 million driven mainly by an increase in employee-related accruals due to timing and team salary and wages growth. Fixed assets, investments, loans to related parties and convertible notes of $10,082 million was largely in line with the prior year. Investment in new stores, property development, and refurbishments of existing stores was partly offset by a reduction in the Group's investment in Endeavour Group by $630 million following the sale of a 5.5% stake in December 2022. Intangible assets of $5,693 million increased by $415 million following the recognition of intangibles assets on the acquisitions of MyDeal and Shopper Media. Lease assets of $9,467 million decreased by $528 million driven by lease asset depreciation of $1,066 million, partially offset by lease asset additions and remeasurements of $559 million. Total funds employed decreased by $444 million, due to higher payables and a decrease in lease assets, partly offset by an increase in inventory and intangible assets driven by the acquisitions of MyDeal and Shopper Media. Net debt (excluding lease liabilities) of $2,680 million decreased by $626 million compared to F22 driven by higher operating cash flows and the proceeds from the sale of shares in Endeavour Group, partially offset by the cash outflow associated with acquisitions. Lease liabilities of $11,980 million decreased by $491 million due to lease payments of $1,609 million, partially offset by interest expense of $542 million and new leases and remeasurements of $556 million. Put option liabilities of $765 million increased by $135 million mainly driven by the recognition of a put option liability on acquisition of MyDeal of $79 million, and an upward revaluation of $41 million driven by higher than forecast earnings. Group ROFE was 14.9%, an increase of 1.2 pts compared to F22 largely due to higher Group EBIT from continuing operations. Group cash flows for the 52 weeks ended 25 June 2023 $ MILLION Group EBITDA - continuing operations Group EBITDA - discontinued operations Group EBITDA Working capital and non-cash (Increase) in inventories Increase in trade payables (Decrease)/increase in provisions Tax paid F23 F22 CHANGE 5,577 5,052 6,387 10.4% n.m. 5,577 11,439 (51.2)% 1 (119) (343) (65.3)% 371 165 124.8% (37) 175 n.m. Net change in other working capital and non-cash 224 (232) n.m. highlights Net change in working capital and non-cash - discontinued operations Cash from operating activities before interest and tax (6,387) n.m. Performance 6,016 4,817 24.9% Interest paid - leases (542) (542) Net interest paid - non-leases (133) (59) 125.4% (587) (838) (30.0)% Total cash provided by operating activities 4,754 3,378 40.7% 2 Proceeds and advances from the sale of property, plant and equipment, subsidiaries and investments, net of cash disposed 1,020 385 165.2% Business review Payments for the purchase of property, plant and equipment and intangible assets (2,519) (2,416) Payments for the purchases of businesses net of cash acquired Other (373) 28 (425) (1) 4.3% (12.2)% (1,844) (2,457) (24.9)% n.m. 3 (1,067) (1,019) 4.7% (1,031) (1,012) 1.9% 1,712 n.m. (2,000) n.m. Directors' Report (110) (125) (12.0)% 702 Cash realisation ratio (%) 113 (1,523) 861 n.m. Total cash used in investing activities Repayment of lease liabilities Dividends paid (including to non-controlling interests) Proceeds from loan to related party Payments for share buy-backs Payments for shares held in trust Net cash flow 1 F22 adjusted for non-cash gain on demerger of Endeavour Group of $6,387 million. F22 unadjusted CRR was 33%. 4 Financial Report LO Other information
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