The reaction by the market yesterday to Woolworths' profit result, which saw it add 48c to close at $35.68, was to be expected. It was a small ‘beat’ and certainly not as bad as some analysts had feared.

The company reported net profit (from continuing operations) of $795m for the half year, down 6.5% on the comparable period in FY21. Higher direct and indirect Covid related costs, material stock flow and supply chain issues, and BigW store closures impacted profitability. The Group was also navigating a comparable period (FY21) boom in supermarket sales.

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