Supermarket giant Woolworths announced yesterday that is expecting between a five and six percent increase to full-year profits.
Earlier estimates made by the company had predicted an increase between 4 and 6 percent, but the revised figures have indicated a higher figure.
Despite the predicted increase, Woolworths experienced a loss in its hardware business, Masters which suffered a $157m loss in EBIT, $38m more than the predicted loss of $119m.
"Actual losses were more than anticipated mainly due to overly-optimistic sales budgets, relatively higher wage costs for new store openings and lower gross margins due to the sales mix," Woolworths said.
Woolworths expects Masters to break even by fiscal 2016 based on moderate sales growth and margin improvements.
The expected increase in profit comes as the supermarket giant, along with rival Coles are being investigated by the ACCC for alleged bullying claims which has forced suppliers to force down their prices.