Woolworths Group reported a 15.4% increase in underlying net profit after tax to AUD 1.599 billion for the 2026 financial year, as the supermarket giant benefited from cost efficiencies and strong food sales growth. The company’s shares rose 4.08% to AUD 40.435, nearing a 52-week high of AUD 41.19, following the earnings release.
Group revenue increased 3.6% year-on-year to AUD 71.5 billion, with second-half sales growth accelerating to 3.8%. Underlying earnings before interest and tax rose 12.7% to AUD 3.1 billion, lifting the EBIT margin by 35 basis points to 4.3%. Operating cash flow grew 5.2% to AUD 6.5 billion, while net cash flow after dividends and lease payments totaled AUD 346 million. The company maintained its dividend yield at 2.32%, extending its 34-year track record of payouts.
Australian Food, the group’s largest segment, delivered a 4.6% sales increase to AUD 53.9 billion, with EBIT up 8.5%. First-half sales in the segment accelerated to 5.7% growth in the first eight weeks of the 2027 financial year. New Zealand operations reported a 2.5% sales rise in local currency, though second-half earnings declined 7.7%. BIG W returned to profitability with an EBIT of AUD 64 million, a AUD 97 million swing from the prior year’s loss, supported by a 3.7% increase in gross transaction value and a 13% rise in digital visits.
E-commerce and digital sales surged 16.9% for the year, with second-half growth accelerating to 17.2%. App-based orders accounted for over 70% of transactions in the fourth quarter, while average weekly visits to the group’s digital platforms rose 22.9% year-on-year. Delivery orders completed within two hours now represent 47% of delivery sales, up from 40% previously, across more than 850 stores. Petstock’s comparable sales grew 5.8%. The company expanded its lower shelf price range to include over 1,000 products and introduced 83 new and 60 reformulated convenience meals.
Operational improvements included the full operational status of the Moorebank supply chain precinct in New South Wales, with throughput exceeding 2.4 million cartons per week. A new chilled distribution center in Sydney is scheduled to launch in early 2025, while a Melbourne North automated e-commerce facility is planned for FY2028. Sustainability initiatives restored soft plastic recycling to over 700 locations and supported the equivalent of 44 million meals donated via OzHarvest.
Customer surveys indicated over 40% of shoppers reported financial strain, while 64% reported using AI assistance for shopping. The Disney Ooshies campaign contributed an estimated 1.5 to 2 percentage points of incremental sales growth in early FY2027. Management highlighted the Team Assist platform, which resolves 90% of customer queries before escalation, handling over 7,000 weekly interactions.
