Woolworths, Australia's largest supermarket chain, has reported its first half-year loss in 23 years after writing off A$3.2bn from its failed Masters hardware business. The loss of A$972.7m ($704m, £502m) for the six months to December reflects the company's decision to sell or close the DIY chain, which struggled to attract customers.
Sales fell 1.4% to A$32bn, impacted by lower trading in food and general merchandise, as well as the sale of 131 stores at Caltex petrol stations. Excluding the write-offs, net profit was A$925.8m, down 33% from the same period in 2014. The company also cut its interim dividend by more than a third to 44 cents per share.
Brad Banducci, currently head of food, will take over as chief executive. Chairman Gordon Cairns praised Banducci's 25 years of retail experience and his track record of growing businesses. Outgoing CEO Grant O'Brien announced his departure last June after leading the company since October 2011.
Woolworths plans to refocus on its supermarket business to compete with rivals Coles and discounters Aldi and Lidl, which have recently entered the Australian market. Cairns cautioned that the turnaround would take three to five years. Shares closed 2% higher in Sydney on Friday but remain down by a third over the past year.
