Woolies have been one of the biggest winners from the pandemic (kudos to panic buying toilet paper)...
Background: Woolies have been one of the biggest winners from the pandemic (kudos to panic buying toilet paper). We're talking a 78% increase in net profits for the full-year to August.
What happened: Fast-forward to the first-half of the new financial year, and Woolies is singing a different (more solemn) tune. They've announced a $220 million cost blowout.
What else: It's all thanks to the ol' supply chain and COVID disruptions. On top of that, the company had to fork out for direct COVID-safe costs and indirect costs like higher fuel prices.
💡Direct and indirect costs are the two major kinds of expenses that companies can incur.
💡We've got:
💡So, personal protective equipment for production staff is a direct cost that Woolies incurred, while higher fuel prices is an indirect cost.
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