Woolworths Group (WOW) H1 2025 earnings summary

Executive summary

• Group sales for H1 FY25 rose 3.7% to AUD 35.9 billion, with all segments contributing to growth and eCommerce sales up 18.3%.

• 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.

• PETstock acquisition consolidated from January 2024, contributing to W Living segment growth.

Financial highlights

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

• Australian Food sales up 2.7% to AUD 26.7 billion; EBIT down 12.8% due to disruptions and higher costs.

• New Zealand Food sales up 2.7% (NZD), EBIT up 15.2% year-over-year.

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

• Net cash provided by operating activities was AUD 1.9 billion, down from AUD 2.6 billion year-over-year.

Outlook and guidance

• Australian Food H2 EBIT expected to decline mid-single digits year-over-year, including 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, reflected in increased capital expenditure commitments.