Woolworths Group Limited (ASX:WOW) Announces Half-Year Results
Financial Performance
Woolworths Group reported a 3.7% increase in group sales for the half-year ended 5 January 2025, reaching $35.930 billion. Despite this growth, Group EBIT declined by 14.2% to $1,451 million, driven by a 12.8% decrease in Australian Food EBIT. In contrast, New Zealand Food EBIT rose by 15.2%, and Australian B2B EBIT increased by 9.9%.
Earnings Per Share and Dividends
The Group’s NPAT attributable to equity holders fell by 20.6% to $739 million. An interim dividend of 39 cents per share was declared, reflecting a 17.0% reduction from the previous year.
Operational Highlights
eCommerce sales surged by 18.3%, supported by initiatives like Same Day, Direct to Boot and MILKRUN. Media, Everyday Rewards and Services also grew strongly in the half.
Future Outlook
Woolworths plans to continue enhancing retail fundamentals, simplifying operations to achieve approximately $400 million in office cost savings, and expanding supply chain assets in NSW. The company anticipates a mid-single digit decline in EBIT for the second half of 2025.
Executive Comments
CEO Amanda Bardwell stated, “Customer metrics have begun to improve following a challenging half which was impacted by industrial action and ongoing cost-of-living pressures. We remain committed to providing value to our customers in an environment where household budgets remain under pressure and customers continue to shop around. Our priorities for 2025 are clear and we are already underway. We have an opportunity to further improve the shopping experience for our customers, we are taking steps to simplify our business, and are committed to unlocking the full potential of the Group.”
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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