Woolworths Group (WOW) H2 2025 earnings summary

Executive summary

• Group sales rose 3.6% to AUD 69.1 billion, with all segments contributing; EBIT declined 12.6% to AUD 2,754 million, mainly due to Australian Food and BIG W, while New Zealand and B2B 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.

• E-commerce, media, rewards, services, and New Zealand delivered strong contributions; customer scores improved in H2 as value initiatives took effect.

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

• Supply chain transformation and cost savings initiatives progressed, with AUD 400 million in cost savings on track.

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%.

• Australian Food EBIT down 10.5%; normalized EBIT would have declined 5% excluding disruptions.

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

• Significant item loss before tax: AUD 569 million, including impairments and restructuring costs.

• 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 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.

• New Zealand Food transformation to continue; BIG W expected to be EBIT and cash flow positive in FY 2026.

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