Woolworths Australia posts Q3 sales boost

Australia's largest supermarket chain, Woolworths Ltd, has posted a strong third quarter sales result.

Woolworths today reported a 22.7 per cent increase in third quarter sales from continuing operations to A$9.67 billion ($11.55 billion).

"We expect sales growth including Foodland and Taverner to be in the range of 15 per cent to 20 per cent," the company said in a statement.

"We also anticipate that EBIT (earnings before interest and tax) will grow faster than sales in FY06 (fiscal 2006)."

Woolworths said it still expected its net profit growth for 2005/06 to be in the lower double digits, between 10 per cent to 15 per cent, subject to current retail trading patterns and a continuation of the present business, competitive and economic climate.

The retailer's recent acquisitions of Foodland Associated Ltd and Taverner Hotel Group were expected to add five per cent to eight per cent to the result.