Woolworths reports 16% jump in profits as ACCC prepares legal action over ‘illusory’ discounts

The earnings report comes as the Australian Competition and Consumer Commission (ACCC) alleges Woolworths and Coles misled shoppers by offering ‘illusory’ discounts on hundreds of common products. Photograph: Jessica Hromas/The Guardian

Woolworths has reported a significant 16.4% rise in profit, helped by expanding its margins in its key supermarket business.

In its half-year earnings report released on Wednesday, Woolworths recorded an increase in underlying net profit to $859m over the six months to 4 January, up from $739m in the prior corresponding period.