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
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