Woolworths Group has reported a 14.2 per cent decline in half-year earnings (EBIT), largely due to the impact of industrial action, rising costs, and supply chain challenges.
Despite a 3.7 per cent increase in group sales to $35.9 billion, net profit after tax (NPAT) fell by 20.6 per cent to $739 million.
Amanda Bardwell, CEO of Woolworths Group, acknowledged the challenges but highlighted improvements in customer sentiment.
“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.”
Woolworths has outlined a roadmap to stabilise performance, focusing on simplifying operations, increasing efficiencies, and improving customer value.
“We have clear priorities for 2025. We need to get it right for our customers by excelling at the retail fundamentals in areas like value, range and availability.”
Cost-saving initiatives, including $400 million in support office reductions, are already underway, along with continued investment in Woolworths’ supply chain infrastructure. The company is also preparing for the Australian Competition and Consumer Commission (ACCC) final report on supermarket pricing, which could have further implications for operations.
The Australian Food business recorded a 2.7 per cent increase in sales, but EBIT declined by 12.8 per cent, affected by industrial action that disrupted stock flow and rising operational costs. In contrast, New Zealand Food EBIT increased by 15.2 per cent as Woolworths continued its brand transformation in the region.
“We understand that despite low and stable food inflation, cost-of-living concerns persist for customers. We remain focused on providing value and getting it right for all of our stakeholders,” said Bardwell.
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