Woolworths
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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.
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H1 2026 earnings summary4 Mar, 2026

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.

How to ensure adjusted earnings predictability?
CRG: What specific actions to improve profit?
Capital allocation priorities given rising debt?
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H2 20262 Sep, 2026
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Frequently asked questions

Woolworths Holdings Limited is a retail group operating in the fashion, food, and financial services sectors. The company manages a portfolio of brands, offering apparel, home goods, groceries, and beauty products through physical stores and e-commerce platforms. It also provides financial services, including credit cards and insurance, through strategic partnerships. Woolworths Holdings operates across multiple regions, with a presence in South Africa, Australia, and other international markets. The company is headquartered in Cape Town, South Africa, and its shares are listed on the Johannesburg Stock Exchange (JSE).

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