Woolworths shares plunge as COVID costs bite

 Woolworths Group (ASX: WOW) shares dropped by more than 9 per cent this morning after the retailer's CEO Brad Banducci described the current period as "one of the most challenging halves we have experienced in recent memory", citing direct COVID costs of $150 million for the Australian Food division.

The group is also forecasting elevated operating costs of $60-70 million because of the indirect disruption to stores and distribution centres from operating in a COVID environment.

The group estimates EBIT of $1.19-1.22 billion, which is at least 20 per cent lower than the FY21 result ex-Endeavour Group - a drinks and hotels business that was spun off through a demerger in June.

Read More: https://www.businessnewsaustralia.com/articles/woolworths-shares-plunge-as-covid-costs-bite.html



Comments

  1. Your House Cleaning Guide16 December 2021 at 03:28

    Sorry to hear that the largest company of Australia is in loss due to the COVID, but we don’t forget the hundreds of small businesses that are permanently closed due to the lockdown. Most of them are struggling with their funds. So, it is fine for a top brand, they will recover from it soon. At the moment we should feel for small businesses and startups.

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