Woolworths Posts $69.1B Revenue with 12.6% EBIT Drop and $415M Impairments

Financial Performance Overview

Woolworths Group Limited has released its full-year results for the 52 weeks ended 29 June 2025, reporting a 1.7% increase in revenue to $69.1 billion. However, the company’s earnings before interest and tax (EBIT) before significant items declined by 12.6% to $2.75 billion, primarily due to underperformance in its Australian Food and BIG W segments.

The Australian Food division faced margin pressures exacerbated by industrial action in Victoria and supply chain disruptions, leading to a normalised EBIT decline of 10.5%. BIG W reported a loss of $35 million, impacted by clearance activity and lower average selling prices as it reset its product range.

Significant Impairments and Restructuring

The Group recognised significant items amounting to $569 million before tax, including a $346 million impairment related to BIG W, $52 million for MyDeal impairment and closure costs, and $17 million for Healthylife impairment. Additionally, $146 million was recognised for support office and store operating model redundancy and restructuring costs.

In June 2025, Woolworths announced the closure of the MyDeal customer website, consolidating its marketplace offerings under BIG W Market and Everyday Market. This strategic move resulted in the full impairment of the MyDeal cash-generating unit.

Dividend and Shareholder Returns

The Board declared a fully franked final dividend of 45 cents per share, bringing the total dividend for the year to 84 cents per share, reflecting a payout ratio of 74.1%. The dividend reinvestment plan remains active with no discount applied, and the company intends to satisfy DRP obligations through on-market share purchases.

Sustainability and Operational Initiatives

Woolworths made meaningful progress on its sustainability agenda, achieving a 22.9% reduction in scope 1 and 2 greenhouse gas emissions from a 2023 baseline. The Group advanced its supply chain transformation with the opening of the Moorebank National Distribution Centre in November 2024 and the Auburn Customer Fulfilment Centre in May 2025, with the Sydney Chilled and Fresh Distribution Centre under construction.

The company also expanded its eCommerce capabilities, with Group eCommerce sales growing by a normalised 17.1%. Same Day and On Demand delivery options have been enhanced, fulfilling 87% of B2C orders within 24 hours and 41% of delivery orders within two hours in the final quarter.

Governance and Leadership Changes

In line with its strategic priorities, Woolworths appointed Annette Karantoni as Managing Director of Woolworths Retail in March 2025, consolidating key food retail businesses under her leadership. Amanda Bardwell assumed the role of CEO in September 2024, steering the Group through a period of operational reset and simplification.

The Board welcomed new non-executive director Ken Meyer, bringing extensive food retail experience, while Holly Kramer retired after over nine years of service. The Group continues to focus on cost discipline, targeting $400 million in above-store cost savings by the end of calendar 2025.

Regulatory and Legal Environment

Woolworths is currently defending proceedings initiated by the Australian Competition and Consumer Commission (ACCC) and the New Zealand Commerce Commission (NZCC) concerning pricing representations. The outcomes remain uncertain and are treated as contingent liabilities.

Additionally, the Group continues to address legacy payroll remediation provisions related to compliance with industrial awards and enterprise agreements, with a remaining provision of $146 million as at June 2025.