Woolworths Group (WOW) H1 2025 earnings summary

Executive summary

• Group sales rose 3.7% year-over-year to AUD 35.9 billion, with strong eCommerce growth and contributions from all segments, including the PETstock acquisition.

• Group EBIT before significant items fell 14.2% to AUD 1.45 billion, mainly due to industrial action, supply chain costs, and increased promotional investment.

• Net profit attributable to equity holders before significant items dropped 20.6% to AUD 739 million, reflecting lower EBIT and higher finance costs.

• Customer value-seeking behavior intensified, with increased cross-shopping, demand for promotions, and improved digital engagement.

• Strategic priorities include simplification, cost savings, and unlocking growth in adjacent businesses.

Financial highlights

• Group EBIT before significant items: AUD 1.45 billion, down 14.2% year-over-year; NPAT before significant items: AUD 739 million, down 20.6%.

• Interim dividend of AUD 0.39 per share, down 17% year-over-year.

• Gross margin declined 17 bps to 27.2%; CODB increased 68 bps to 23.2%.

• Group eCommerce sales up 18.3% to AUD 4.68 billion, with penetration rising to 13.9%.

• Cash from operating activities fell 26.5% to AUD 1.9 billion; cash realisation ratio at 85%.

Outlook and guidance

• Australian Food H2 EBIT expected to decline mid-single digits year-over-year, with ongoing supply chain costs.

• E-commerce expected to grow as a share of sales; simplification initiatives to yield material cost benefits from FY26.

• New Zealand Food H2 EBIT expected above prior year; BIG W H2 EBIT loss to be in line with last year.

• Continued investment in automated regional distribution centres and digital tools.