Woolworths profit surges 18 per cent amid staff underpayment scandal

Woolworths has posted an 18 per cent surge in group profits, despite a costly Fair Work underpayment case denting its bottom line.

But it would have come in at $1.599bn if it wasn’t for the significant expense from a Fair Work case.

Group sales rose to $71.5bn during the year until June 28, which was 3.6 per cent compared to this time last year.

In the Fair Work case, Woolworths and its major rival Coles were found to have historically underpaid nearly 30,000 employees due to errors in their award arrangements.

Woolworths Group chief executive Amanda Bardwell warned of cost-of-living pressures for customers going forward.

“Looking ahead, while we expect the challenging economic environment to continue with household budgets remaining under pressure, our strategy to deliver low prices and the best range and convenience gives us confidence we can be first choice for customers while delivering for our team and shareholders in the year ahead,” she said.

Originally published as Woolworths profit surges 18 per cent amid staff underpayment scandal