Woolworths has just poster an after tax loss of $972.7 million in its half yearly results. After the retailers failed home improvement market venture with Master dragged on its bottom line.
This is the first financial loss in the companies history since its listing on the ASX 23 years ago. In the six months leading up till January 3rd Woolworths reported that results by 176% compared to the same time period the previous year. Woolworths said impairment changes and other costs in the Master home Improvement arm of the business would total $1.89 billion an increase of 22.9%.
Woolworths chairman Gordan Cairns in a statement said “We are building the Woolworths business… While we have made progress, it will be a three to five year journey and there is much to do. The decision to exit the home improvement will allow Woolworths to focus its energy and resources on strengthening and executing its plans in its core businesses.”
Woolworths has also appointed a new CEO the current managing director of the organisations food group, Brad Banducci. Mr Banducci is understood to have been the only internal applicant for the role, most business analysts were expecting the appointment or an external applicant, someone who could bring change and invigorate the business.
Shares in Woolworths slumped as much as 6.3 per cent to touch nine-year lows, before clawing back some losses to fall 2.5 per cent to $21.35.