Woolworths Group (WOW) H1 2026 earnings summary

Executive summary

• Group sales for H1 FY26 rose 3.4% to AUD 37.1 billion, with all segments reporting growth and Australian Food showing strong momentum.

• EBIT before significant items increased 14.4% to AUD 1.66 billion, with margin up 43 bps; NPAT before significant items was AUD 859 million, up 16.4%.

• NPAT after significant items fell 49.4% to AUD 374 million, mainly due to a payroll remediation provision of AUD 710 million.

• E-commerce sales grew 14.6% year-over-year, with double-digit growth across all major businesses and improved customer satisfaction.

• Interim dividend of AUD 0.45 per share declared, up 15.4% year-over-year, fully franked.

Financial highlights

• Group EBIT before significant items up 14.4% to AUD 1.66 billion; after significant items, EBIT dropped to AUD 962 million.

• Gross margin for Australian Food stable at 28.6%; CODB as a % of sales declined by 24 bps, reflecting productivity and cost savings.

• Operating cash flow before interest and tax was AUD 3.2 billion, up 4.5%; cash realization ratio at 95%.

• Basic earnings per share fell to 30.6 cents from 60.5 cents year-over-year.

• Net debt to EBITDA ratio at 2.7x, within leverage thresholds and investment-grade rating.

Outlook and guidance

• On track to deliver mid to high single-digit EBIT growth in Australian Food for FY26; sales up 5.8% in first seven weeks of H2.

• Expect continued improvement in New Zealand Food and BIG W, with BIG W expected to be EBIT and cash flow positive for FY26.

• Operating CapEx for FY26 expected at approximately AUD 2 billion.

• Directors have reasonable expectations of adequate resources for continued operations.

• Dividend of AUD 0.45 per share approved, up from 39 cents in the prior interim period.