AUS
NZ
UK
CA
USA
IND
Highlights
- Woolworths delivers mixed performance across key business divisions
- Australian food and e-commerce operations remain central to growth
- New Zealand business shows signs of recovery with transformation focus
Woolworths Group Ltd (ASX:WOW), a major retailer and part of the ASX 200 companies, has released its FY25 result, drawing attention to its share price and overall retail performance. Known for its presence across supermarkets, B2B operations, New Zealand food, BIG W, Petstock, and other divisions, the company highlighted both challenges and opportunities during the year.
The group’s financial updates showed softer profitability compared to the prior year, with the impact of industrial action and higher operating costs weighing on results. However, steady sales momentum across some segments and an increase in e-commerce activity demonstrated areas of resilience.
Performance of Key Divisions
Australian Food Segment
The Australian food business remained the core driver, with sales holding steady and e-commerce showing notable growth. The company emphasised improving customer satisfaction and stronger retail execution in the latter part of the year. Despite cost pressures and industrial action, the segment continues to represent the foundation of Woolworths’ operations.
B2B Operations
In its business-to-business segment, which includes PFD and supply chain services, Woolworths recorded improved margins. This was supported by stronger earnings from its logistics operations, reflecting a focus on efficiency.
New Zealand Food Division
The New Zealand arm delivered improved outcomes, supported by rebranding efforts and transformation initiatives that connected well with customers. E-commerce growth also added strength to this division, helping it rebound from earlier weakness.
W Living and BIG W
The W Living division, including BIG W and Petstock, experienced mixed results. While BIG W saw higher sales volumes due to more affordable ranges and clearance activity, profitability was challenged. Petstock contributed positively, though the group had to restructure by selling some stores to meet regulatory requirements.
Outlook for FY26
Looking ahead, Woolworths indicated cautious optimism for FY26. The Australian food division is expected to stabilise further, while the New Zealand business is projected to continue its recovery. Tobacco sales remain under pressure, and system upgrades are anticipated to add to short-term costs.
In the medium term, Woolworths has outlined a goal of achieving sustainable earnings growth, with ongoing focus on customer value, digital expansion, and supply chain improvements.
As one of the leading retailers within the ASX 200, the performance of Woolworths continues to be closely watched as it navigates the evolving retail landscape.
