Bulletin: Woolworths Can Absorb Supply Chain Crunch

MELBOURNE (S&P Global Ratings) Feb. 23, 2022--Australia-based Woolworths Group Ltd.'s (BBB/Stable/A-2) weaker-than-expected earnings for the six months to Jan. 2, 2022, reflect significant COVID-induced supply disruptions. We believe these disruptions are largely temporary and are unlikely to persist or materially affect Woolworths' credit quality. During the period, on a continuing operations basis, group EBIT declined 11%, with EBIT margin falling to 4.3% from 5.3% in the prior corresponding period. We expect operations at the company's distribution centers, where supply chain pressures have been acute, to normalize over the next six to 12 months. Omicron-related disruptions caused staff absenteeism, missed delivery deadlines, and disruptions in the availability and mobility of stock. We expect that the company's operational and financial performance will

...February 22, 2022 MELBOURNE (S&P Global Ratings) Feb. 23, 2022--Australia-based Woolworths Group Ltd.'s (###/Stable/A-2) weaker-than-expected earnings for the six months to Jan. 2, 2022, reflect significant COVID-induced supply disruptions. We believe these disruptions are largely temporary and are unlikely to persist or materially affect Woolworths' credit quality. During the period, on a continuing operations basis, group EBIT declined 11%, with EBIT margin falling to 4.3% from 5.3% in the prior corresponding period. We expect operations at the company's distribution centers, where supply chain pressures have been acute, to normalize over the next six to 12 months. Omicron-related disruptions caused staff absenteeism, missed delivery deadlines, and disruptions in the availability and mobility of stock. We expect that the company's operational and financial performance will likely improve during 2022. Nevertheless, the outbreak of another variant could delay this expected improvement....

Bulletin