Struggling supermarket giant Woolworths post its first billion-dollar loss

For the first time in 23 years, supermarket giant Woolworths has posted a full-year loss of 1.23 billion Australian dollars (940 million U.S. dollars) from its food and drink business.

The drop was compounded by a 40.8 percent decline in underlying earnings before interest and tax from the Australian food and petrol to 1.76 billion Australian dollars (1.34 billion U.S. dollars) for 52 weeks ending June 26.

"Sales improved over the year for our Australian food business with comparable sales in the fourth quarter the strongest for the year driven by strong comparable transaction growth," Woolworths Group chief executive Brad Banducci said told the ASX in a statement on Thursday.

"However, underlying earnings from Australian food and petrol were down 40.8 percent on last year reflecting lower sales growth driven primarily by our investment in lower prices and a decline in items per basket," he said.

Banducci, who took control of the group six months ago, said several measures had been undertaken by the company to return to profitability which includes downsizing its workforce by letting go of 500 of its staff and the selling of its failed home improvement business Masters to Metcash Limited for 165 million Australian dollars (125 million U.S. dollars) on Wednesday.

The group said the sale of Masters would be wrapped up by October with all existing stores closed in December. Endit