Woolworths 1H turnover 41.6B rand

Woolworths 1H turnover 41.6B rand

Woolworths Group Reports Mixed Half-Year Performance Amid Pay Dispute Costs

Woolworths Group's turnover for the first half of the 2026 financial year reached $37.1 billion AUD, reflecting a 3.3% year-on-year increase driven by stronger in-store and online sales. In-store retail revenue totaled $28.6 billion, while online sales contributed $5.3 billion, highlighting ongoing e-commerce growth. However, the company's profit plummeted by 48.5% to $381 million AUD, down from $741 million in the prior year, due to significant cost pressures.

The decline in profitability was primarily attributed to $487 million in settlements for underpaid salaried staff linked to a Fair Work Act compliance investigation initiated in 2021. Additionally, the group incurred $61 million in one-off closure costs from terminating its warehouse operations contract with Endeavour Group in Melbourne. Earnings before interest and tax (EBIT) fell by $492 million year-on-year, underscoring operational challenges.

While all business divisions—Australian Food, New Zealand Food, Big W, and B2B—reported revenue growth, Quantium (AI transformation) and property investments remained the second-highest cost center after Australian Food. Woolworths also disclosed a remaining $786 million provision for unresolved pay disputes and $50 million for hourly staff settlements, following prior payments of $191 million.

The company faces ongoing regulatory scrutiny, including investigations by the Australian Competition and Consumer Commission (ACCC) and New Zealand Commerce Commission (NZCC) into pricing and supplier practices. Woolworths maintains it is defending these allegations robustly.

For investors, the results highlight the interplay of operational expansion, legacy cost burdens, and regulatory risks. While sales growth remains resilient, profit recovery will depend on resolving outstanding liabilities and navigating compliance challenges.

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