Retail giant Woolworths has endured one of its most challenging trading periods, following the emergence of the highly contagious Delta variant of COVID-19.
The supermarkets operator said its stock flows and operating rhythm was rocked by the scare in the first six months of fiscal 2022.
"The first half of F22 has been one of the most challenging halves we have experienced in recent memory due to the far-reaching impact of the COVID Delta strain," CEO Brad Banducci said on Tuesday in a market update.
"As we head into the key Christmas trading period we have a good in-stock position and positive trading momentum.
"However, the ongoing material costs of operating in a COVID environment has impacted our expected earnings in the H1."
Woolworths, which will release its first-half results in late February, expects to see a direct cost hit of $150 million in its Australia Food division in addition to direct costs of between $60 million to $70 million.
Australian Food earnings before interest and tax are forecast to be between $1.19 billion and $1.22 billion, compared to about $1.33 billion in the same period in fiscal 2021.
It will also book a bonus payment for staff of between $35 million and $40 million as a way of saying thank you for their efforts during the pandemic.
