Just yesterday, Woolworths Group Ltd (ASX: WOW) released its FY21 full-year results to the ASX. The retail conglomerate reported a busy year that saw its divestment from liquor and hotels business, Endeavour Group Ltd (ASX: EDV).
Meanwhile, Coles Group Ltd (ASX: COL) delivered its FY21 earnings on 18 August, announcing a solid performance despite continued disruptions. Its share price also edged higher on the result for the following days.
Comparing the financial figures of two companies can give investors a clearer picture of how the industry is travelling.
It's no secret that COVID-19 has positively impacted the grocery market. However, all eyes are now on both supermarket giants to see if they can continue their strong growth in a post-pandemic world.
Below, we take a look at how the Woolworths earnings result stacks up against Coles' numbers.
A recap on the Woolworths earnings result
Here's a summary of the financial details that Woolworths posted for the 6 months ending 30 June 2021.
- Group sales of $67,278 million, up 5.7% on the prior corresponding period;
- Group earnings before interest and tax (EBIT) of $3,663 million, up 13.7%;
- Group net profit after tax (NPAT) of $1,972 million, up 22.9%; and
- Final dividend of 55 cents per share, up 14.6%.
The robust result came as the company noted customers shopped more frequently but with small basket sizes. In addition, 23 new stores were opened up, bringing the total network to 1,076 stores.
In early trade on Friday, the Woolworths share price is down 0.93% to $40.61.
How does this compare to Coles?
Coles revealed its own FY21 numbers, highlighting the surging grocery market. Let's see how it stacked up against Woolworths' earnings.
- Sales revenue of $38,562 million, up 3.1% on the prior corresponding period;
- Earnings before interest and tax (EBIT) of $1,873 million, up 6.3%;
- Net profit after tax of $1,005 million, up 7.5%; and
- Final dividend of 61 cents per share, up 6.1%.
Coles recorded a bumper year driven by strategic initiatives that were implemented to allow customers to spend more time at home during COVID-19. This included the continued roll-out of "Click & Collect", the launch of a digital catalogue, and "Fresh Produce Easy Ordering".
After the results announcement on 18 August, the company's shares rallied to a record high of $18.94. However, investors decided to take profit off the table, sending its shares lower. At the time of writing, Coles shares are swapping hands for $17.69, up 0.28% on yesterday's closing price.
Comparing Woolworths' earnings with those of its rival, there are similarities in terms of revenue growth. Although when it comes to EBIT and NPAT, Woolworths is far ahead of Coles in both numbers and percentage increases.
Woolworths share price snapshot
It has been a blissful 12 months for Woolworths shares, posting a gain of more than 18% over the period. The company's share price reached an all-time high of $42.66 last week, before also dipping lower due to profit-taking.
Based on today's price, Woolworths has a market capitalisation of $51.9 billion, with approximately 1.2 billion shares on issue.
