Woolworths Group (ASX:WOW) unveils $2b buy back as FY21 profit surges

Woolworths (ASX:WOW) unveiled a $2 billion share buy-back and boosted their dividend thanks to a bumper year. The spin-off of their drinks business Endeavour (ASX:EDV) plus the surge in spending contributed to their stellar performance.

Woolie’s sales rose 5.7 per cent to $67.2 billion, and the company’s profit after tax for continuing operations jumped 20.1 per cent to $1.5 billion. Statutory earnings spiked up 77.8 per cent to $2.1 billion.

However, the Covid-19 pandemic did hit other areas of their balance sheet. The company posted a $50 million impairment in their Metro stores, forked out $44 million worth of redundancies and spent $68 million in transaction costs for the demerger of Endeavour.

To offset these figures, Woolies recorded a $221 million gain on their equity interest in artificial intelligence company, Quantium. Totalling all these figures up, the supermarket giant came out in the black, posting a $59 million gain in significant items.

Investors will be rewarded with a nice dividend and a share buyback. A final dividend of 55 cents per share is set to be paid in October.

Shares in Woolworths (ASX:WOW) are trading 0.2 per cent higher at $40.90.
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