Shares drop most since Jan 16
Woolworths sees H1 EBIT A1.68 blnA1.70 bln
Sees H1 EBIT NZ to fall 42 yoy

Jan 29 Reuters Woolworths forecast on Monday a noncash impairment of NZ1.6 billion 974.40 million in its 2024 interim results, as the retailer39;s New Zealand business faces challenges and a weak market outlook, with shares losing most in a fortnight.

Still, the supermarket chain said strong results at its Australian stores and food distribution business will manage to offset bleak performances from its New Zealand grocery and Big W discount segments.

Woolworths, Australia39;s largest grocer, said it expects firsthalf unaudited EBIT between A1.68 billion 1.10 billion and A1.70 billion, slightly higher than the A1.64 billion a year earlier.

The rise in the group39;s EBIT is expected on the back of solid financial performance by its Australian Food business and food distributor PFD Food Services.

Woolworths has been struggling with its NZ business for a while now, with recent tough macroeconomic conditions also weighing on performance, said EP Capital retail analyst Phillip Kimber.

Shares of Woolworths were down 1.2 at A35.8, as of 2347 GMT.

While this implies a strongerthanexpected performance from the key Australian Food business, it39;s nevertheless disappointing that the NZ Supermarket business continues to be volatile.

The retailer also expects to record a A209 million loss after a review of its 9.1 stake in local alcohol retailer Endeavour Group as…