Key Highlights

  • Group sales increased 3.6% in FY26, with all segments reporting sales growth on the prior year, while Group EBIT before significant items increased 12.7% with growth across all trading segments.
  • Group eCommerce sales increased 15.9%, with eCommerce penetration up 170 basis points to 15.9%, and average weekly digital platform traffic rising 7.2% to 31.5 million.
  • Australian Food sales increased 4.6% with EBIT up 8.5%, though results were impacted by the non-comparable effect of industrial action in H1 F25 and Supply chain implementation costs; excluding these impacts, sales and EBIT would have increased 4.1% and 4.8% respectively.
  • New Zealand Food's second half was more challenging, with EBIT declining 7.7% year on year as a flight to value and disruption from a new store operating model rollout impacted sales growth and gross margin.

Woolworths Group Limited (ASX:WOW) has released its Full Year Results Announcement for the period ended 28 June 2026. Group sales increased 3.6% in F26, reflecting growth in Australian Food across all segments. In New Zealand Food, growth in New Zealand dollar terms was more than offset by currency depreciation, with Group sales increasing 4.2% on a constant currency basis.

Average weekly traffic to Group digital platforms increased to 31.5 million in F26, up 7.2% on the prior year. In the fourth quarter, digital traffic increased 13.4% to 33.0 million, reflecting enhancements to the app user experience and the rollout of new digital tools. Group eCommerce sales increased 15.9%, with eCommerce penetration up 170 basis points to 15.9%. Group EBIT before significant items increased 12.7%, with all trading segments delivering EBIT growth on the prior year.

Australian Food Performance

Australian Food sales increased 4.6% in F26, with EBIT increasing 8.5%. The company noted that sales and EBIT growth rates were impacted by the non-comparable effect of industrial action in the first half of F25 and supply chain implementation costs. Excluding these impacts, F26 sales and EBIT would have increased 4.1% and 4.8% respectively.

Investment in value, fresh and convenience, together with improvements to execution, led to improved sales momentum in Woolworths Food Retail, which delivered F26 sales growth of 4.5%, accelerating to 5.7% in the second half. By category, Fresh and Grocery Food performed well, with improving trends in Everyday Needs. Excluding the impact of a material decline in Tobacco sales, Woolworths Food Retail sales grew 5.9% for the full year and 6.6% in the second half.

eCommerce sales within Australian Food increased 18.6% in F26, accelerating to 22.0% in the second half, driven by increased customer Investment and continued growth in On Demand propositions. eCommerce Digital Active Program (DAP) increased 99%, with the DAP Margin up 165 basis points to 4.1%, driven by sales growth, growth in higher margin propositions and productivity improvements. Australian Food's F26 EBIT margin increased 20 basis points to 5.5%, primarily driven by a 22 basis point reduction in cost of doing Business as a percentage of sales, due to improved productivity and cost discipline.

New Zealand Food and Other Segments

New Zealand Food sales increased 2.5% in F26, with EBIT increasing 8.8% for the full year. However, the second half was more challenging, with EBIT declining 7.7% on the prior year. A flight to value in the second half and disruption from the rollout of a new store operating model in late first half impacted customer experience and sales growth. Gross margin declined on the prior year, reflecting customer investment and an increase in stockloss related to the operating model implementation, which led to lower second-half EBIT despite strong cost discipline.

Australian B2B sales increased 4.2% in F26, with growth from PFD, export meat and PC+ somewhat offset by lower SIW sales reflecting lower Tobacco wholesale sales. PFD sales grew 5.2%, with the QSR channel remaining resilient despite some impact from reduced out-of-home spend in the Food Service channel in the second half. Australian B2B EBIT increased 13.0% in F26.

W Living's F26 EBIT of $116 million increased materially compared with the prior year loss of $31 million. BIG W's F26 sales increased 0.9% with EBIT of $64 million, while BIG W EBITDA, which excludes the benefit from lower depreciation due to asset impairments in F25, increased 28.1%, reflecting improved gross margin from higher full price sales and cost management. Petstock sales increased 12.3%, reflecting eCommerce and own Brand growth, with EBIT increasing 33.5%. Other LBIT of $260 million increased $49 million compared with the prior year, reflecting lower property sales, higher short-term incentive costs and additional costs associated with the transition of BIG W to a standalone systems platform.

Current Trading and Outlook

Australian Food total sales increased 7.6% for the first eight weeks of F27, with sales momentum strengthened by the Disney Ooshies collectibles program, estimated to have added approximately 1.5 to 2 points of incremental sales growth. New Zealand Food total sales increased 4.2% for the first eight weeks, with improved momentum relative to the fourth quarter reflecting some benefit from Disney Ooshies. BIG W total sales for the first eight weeks declined modestly on the prior year, reflecting ongoing cost-of-living pressures on households, particularly budget customers, and weaker trade in the Everyday business.

Conclusion

Woolworths Group's FY26 results show growth across sales, EBIT and digital metrics at the group level, with all trading segments contributing to EBIT growth for the year. Performance varied within the portfolio, with Australian Food and W Living posting strong improvement while New Zealand Food's second-half EBIT declined due to margin pressure linked to a new store operating model rollout, and BIG W's trading softened into the start of FY27 amid cost-of-living pressures on budget-conscious households.