Woolworths Group delivered a stronger first-half underlying earnings result, with group sales up 3.4 per cent to $37.1 billion and EBIT up 14.4 per cent to $1.66 billion for the 27 weeks to 4 January 2026.
Snapshot
- Sales: $37.1b, up 3.4%, prior corresponding period (pcp);
- EBIT: $1.66b, up 14.4%, prior corresponding period (pcp);
- NPAT (before significant items): $859m, up 16.4%, prior corresponding period (pcp);
- NPAT (after significant items): $374m, down 49.4%, prior corresponding period (pcp);
- Significant items (after tax): $485m (primarily salaried remediation provision increase); and
- Interim dividend: 45c fully franked, up 15.4 per cent.
CEO Amanda Bardwell said the group had invested in “value, our fresh offer, On Demand convenience and in-store execution”, with improved customer metrics and “market share stabilise” as trading momentum strengthened.
Australian Food sales increased 3.6 per cent to $27.6 billion and EBIT rose 9.9 per cent to $1.51 billion, lifting EBIT margin 32 bps to 5.5 per cent, with lower costs of doing business as a percentage of sales (CODB down 24 bps) partly offsetting wage growth and the higher online mix.
Woolworths said sales momentum improved in Q2, driven by investment in value, fresh and convenience, particularly over the Christmas period. Group eCommerce sales increased 14.6 per cent to $5.4 billion, with penetration rising to 15.5 per cent.
Australian B2B sales rose 4.9 per cent and EBIT increased 14.6 per cent, with the group citing double-digit earnings growth from PFD and PC+.
In New Zealand Food, sales increased 2.8 per cent (NZD) to $4.41 billion and EBIT rose 22.4 per cent to $100 million, supported by cost control and transformation progress.
W Living sales increased 2.7 per cent and EBIT jumped 186 per cent, reflecting improved BIG W clothing performance, strong Petstock growth and lower losses in MarketPlus, including the closure of MyDeal during the half.
Woolworths reported operating capex of $913 million (down from $1 billion), with group net capex of $1.23 billion and FY26 operating capex expected to be about $2 billion.
Outlook
In the first seven weeks of H2, Woolworths Food Retail sales growth was 5.8 per cent (7.2 per cent ex tobacco), driven by store item growth and eCommerce, with Australian Food EBIT growth expected to be at the upper end of the mid-to-high single digit range provided in August.
