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Woolworths (WHL) investor relations material
Woolworths H1 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Group sales and turnover grew 6% in constant currency (5.4% in reported terms), outpacing inflation, with all business segments gaining market share and outperforming their respective markets despite challenging conditions in Southern Africa and Australia.
Strategic investments in core infrastructure, leadership changes, and operational improvements drove top-line momentum, improved earnings, and validated FY 2025 as the trough year.
Strong cash generation and improved free cash flow were supported by working capital release, normalization of apparel inventory, and disciplined capital allocation.
Sustainability, diversity, and innovation remain central, with recognition for gender equality and top employer status.
Share buyback program commenced, with 6.9 million shares repurchased at an average price of R51.23.
Financial highlights
Group turnover and concession sales reached R42.5bn, up 6.1% in constant currency (5.4% reported); Woolworths South Africa sales rose 6.8%.
Adjusted EBITDA was R4.6bn (+4.2% in constant currency), adjusted EBIT R2.9bn (+4.1%), and adjusted diluted HEPS 170.3cps (+3.8% in constant currency, +0.7% reported).
Interim dividend per share increased 10.3% to 118.0cps, with a payout ratio of 70%.
Free cash flow per share was R2.31, more than triple last year; cash conversion ratio reached 110%.
Net borrowings at R5.8bn; net debt/EBITDA at 1.48x, within covenants.
Outlook and guidance
Expect continued earnings improvement as foundational investments yield results and CapEx cycle peaks.
Food price movement for H2 forecast at 3%-4% (excluding meat); FBH price movement expected at 3%-3.5%.
H2 FY26 trading: Food sales +5.4%, FBH +12.1%, CRG +1.6% year-over-year in first eight weeks.
Macro conditions in South Africa show early improvement, but consumer spend remains constrained; Australia remains challenging.
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