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Group Sales: Increased 3.4% to $37.1 billion. Group EBIT: Up 14.4% to $1.7 billion, with EBIT margin increasing by 43 basis points. Group NPAT: Attributable to equity holders before significant items was $859 million, up 16.4%. Basic EPS: Before significant items was $0.704 per share, up 16.4%. Australian Food Sales: Increased 3.6% to $27.6 billion. Woolworths Food Retail Sales: Increased 4.7% in Q2, excluding industrial action impact. WooliesX Sales: Increased 14.2%, driven by e-commerce growth of 15.3%. New Zealand Food Sales: Increased 2.8% in New Zealand dollars. BIG W Sales: Increased 1.8%, with gross transaction value up 5.8%. Petstock Sales: Increased 13.1%, with EBIT up 49.6%. Operating Cash Flow: Before interest and tax was $3.2 billion, up 4.5%. Operating CapEx: $913 million, $88 million lower than the prior year. Final Dividend: $0.45 per share, an increase of 15.4% on the prior year. Net Debt-to-EBITDA Ratio: 2.7 times, modestly lower than F25.

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Release Date: February 24, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Woolworths Group Ltd (WOLWF) reported a 3.4% increase in group sales for the first half of FY26, with all trading segments showing growth. Group EBIT, excluding significant items, increased by 14.4%, supported by reductions in the cost of doing business (CODB). The company has made significant progress in its strategic priorities, including a focus on value, fresh, and convenience, which has helped stabilize market share. E-commerce sales grew by 14.6%, with strong contributions from Australian Food, New Zealand Food, BIG W, and Petstock. The company has successfully implemented AI-driven initiatives to enhance customer experience and operational efficiency, such as the Snap & Shop feature and improvements in e-commerce fulfillment.

Negative Points

Broader cost of living pressures and persistent inflation are impacting customer spending behavior, with a focus on value and price comparisons. The company is facing increased competition in the retail environment, particularly in the e-commerce space, with new entrants like Costco and Amazon. Woolworths Group Ltd (WOLWF) is still dealing with the financial impact of industrial action and supply chain transition costs from the previous year. The company has acknowledged that there is more work to be done in improving the everyday needs categories, such as personal care. Significant items before tax amounted to $698 million, largely related to remediation costs following a Federal Court decision, impacting overall profitability.



Q & A Highlights

Q: How has Woolworths improved price trust during the half, and what actions have been taken regarding pricing and product range? A: Amanda Bardwell, CEO, emphasized the importance of price trust for customer loyalty. Woolworths has focused on value for money, with scores improving by 8 points compared to last year. The introduction of lower shelf prices on key family products has been well-received, showing mid- to high-single-digit growth in own brand products and lower double-digit growth in branded products. Promotional participation has increased, and Everyday Rewards has been adjusted to offer more value, resulting in increased member sales.

Q: Can you explain the turnaround in gross profit (GP) momentum within Australian Food? A: Amanda Bardwell, CEO, noted an 8-basis-point improvement in GP, driven by contributions from complementary businesses like Cartology and Everyday Rewards. Despite a promotionally intense period, the commercial team managed well, absorbing pressures in red meat categories. Supply chain productivity was strong, and stock loss rates were stable, contributing to the GP improvement.

Q: What are Woolworths' plans for cost management and productivity improvements? A: Amanda Bardwell, CEO, highlighted a strong focus on building a low-cost culture. The company achieved a $400 million cost-saving target, with half delivered in the first half. This focus on cost reduction is ongoing, with productivity improvements in stores and supply chain complemented by cost performance in support areas. Stephen Harrison, CFO, added that costs grew by only 2% across the group, despite inflation and volume growth.

Q: How has Woolworths improved execution and customer experience in stores? A: Amanda Bardwell, CEO, attributed improvements to significant leadership changes and a focus on customer needs. The team is now more focused on delivering across multiple horizons, improving transaction and item growth. Retail execution has been disciplined, with better availability and customer experiences, as reflected in improved customer ratings.

Q: What is the impact of the competitive intensity in food e-commerce, and how is Woolworths responding? A: Amanda Bardwell, CEO, noted increased competition from Coles' Ocado partnership and global retailers like Costco and Amazon entering the online space. Woolworths is determined to stay competitive by enhancing its e-commerce offerings and maintaining its position as the first choice for customers.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.