Woolworths Group (WOW) H2 2025 earnings summary

Executive summary

• Group sales rose 3.6% to AUD 69.1 billion, with eCommerce sales at AUD 9.1 billion; EBIT before significant items declined 12.6% to AUD 2,754 million, mainly due to Australian Food and BIG W, while New Zealand and B2B segments showed strong EBIT growth.

• NPAT before significant items was AUD 1.4 billion, down 17.1% year-over-year, reflecting lower EBIT and higher net finance costs.

• Customer metrics improved in H2, driven by value initiatives and retail execution focus.

• Significant cost-saving and organisational simplification initiatives are underway, targeting AUD 400 million in above-store savings.

• Strategic focus is on food leadership, improving underperforming segments (NZ, BIG W), and growing complementary businesses.

Financial highlights

• Group EBIT before significant items: AUD 2.8 billion, down 12.6% year-over-year; normalized EBIT down ~8% excluding one-offs.

• Group NPAT before significant items: AUD 1.4 billion, down 17.1% year-over-year; after significant items, NPAT was AUD 963 million.

• Australian Food sales: AUD 51.5 billion, up 3.1%; e-commerce sales up 17.4%.

• New Zealand EBIT up 40.6%; BIG W posted a loss of AUD 35 million.

• Final dividend: AUD 0.45 per share; full-year payout ratio 74.1%.

Outlook and guidance

• FY 2026 expected to see improved financial performance, with Australian Food returning to mid to high single-digit EBIT growth.

• Near-term challenges include declining tobacco sales (AUD 80–100 million EBIT impact) and AUD 60 million in system replacement costs.

• Price investment through lower shelf program to have an annualized impact of over AUD 100 million in FY 2026.

• Medium-term ambition: sustainable mid to high single-digit EBIT growth and double-digit total shareholder returns.

• Supply chain commissioning and transition costs in FY 2026 and FY 2027 expected to be similar to FY 2025 (~AUD 110 million), with net benefits from FY 2028.