Woolworths Group (WOW) H2 2026 earnings summary

Executive summary

• Group sales rose 3.6% to AUD 71.5 billion, with EBIT before significant items up 12.7% and NPAT before significant items up 15.4% year-over-year, driven by growth across all trading segments and strong eCommerce performance.

• Significant progress on strategic priorities, including digital transformation, AI integration, and sustainability initiatives, supporting long-term shareholder value.

• Customer trust and advocacy improved through price investments, expanded value offers, enhanced loyalty programs, and digital engagement, resulting in increased transactions and basket sizes.

• Above-store cost savings and operational excellence supported a reduction in CODB and improved EBIT margin.

Financial highlights

• Group EBIT before significant items: AUD 3.105 billion (+12.7% YoY); Group NPAT before significant items: AUD 1.599 billion (+15.4% YoY); EBIT margin increased 35 bps to 4.3%.

• E-commerce sales surged 16.9%, with On Demand and digital platforms driving acceleration in H2.

• Final dividend of AUD 0.52 per share, total ordinary dividend for the year AUD 0.97, up 15.5%, payout ratio 74.1%.

• Group ROFE improved to 16.4%, up 2.7 pts from the prior year.

• Operating cash flow before interest and tax up 5.2% to AUD 6.5 billion; cash realisation ratio at 107%.

Outlook and guidance

• Early FY27 trading shows Australian Food sales up 7.6% and New Zealand Food up 4.2% in the first eight weeks, with momentum from successful campaigns.

• Customers expected to remain value-focused amid ongoing economic and cost-of-living pressures; focus remains on cost discipline, productivity, and technology to offset wage and cost inflation.

• New Zealand and BIG W expected to face subdued trading, with efforts on restoring sales momentum and enhancing value and convenience.

• Moorebank supply chain precinct expected to offset implementation costs in FY27.