ASX Inquiry Highlights Risks in Woolworths’ Statutory Earnings Amid Restructuring
Woolworths Group has confirmed its full-year earnings for 2025 met market expectations, responding comprehensively to ASX inquiries about potential material variances. The retailer’s underlying results closely matched analyst consensus, despite statutory impairments and restructuring costs.
- FY2025 underlying earnings within 1% of analyst consensus
- No published earnings guidance for FY2025, market expectations based on sell-side forecasts
- Statutory earnings impacted by non-cash impairments and restructuring previously disclosed
- Dividend payout closely aligned with market forecasts
- Woolworths confirms compliance with ASX continuous disclosure rules
Context of ASX Inquiry
In early September 2025, Woolworths Group Limited addressed an ASX Aware Letter concerning its full-year financial results for the period ending 29 June 2025. The ASX sought clarity on whether Woolworths’ reported earnings deviated materially from market expectations, particularly given a notable share price decline following the results announcement.
Earnings in Line with Market Expectations
Woolworths confirmed that its statutory and underlying earnings did not materially differ from the market’s expectations. The company did not issue formal earnings guidance for FY2025, instead relying on consensus forecasts from 14 sell-side analysts aggregated via the Visible Alpha platform. The variance between Woolworths’ underlying earnings and analyst consensus was less than 1% across key metrics such as sales, EBIT, and net profit after tax.
Importantly, the dividend declared at 84 cents per share was also within 2% of the consensus estimate, reinforcing the company’s steady financial performance.
Statutory Earnings and Market Impact
While statutory earnings showed some divergence due to significant non-cash and non-recurring items, including impairments related to BIG W and MyDeal, as well as restructuring costs, Woolworths emphasized these factors had been previously disclosed and signposted to the market. Only a minority of analysts incorporated statutory earnings in their forecasts, underscoring the market’s focus on underlying performance.
Compliance and Market Communication
Woolworths affirmed its compliance with ASX Listing Rules, particularly continuous disclosure obligations. The company stated it became reasonably certain of its earnings alignment with market expectations by early July 2025 and had no material variances warranting earlier disclosure. Post-results, Woolworths engaged actively with analysts and investors, providing updates on trading performance and FY2026 guidance for its Australian Food business.
Looking Ahead
This detailed response to the ASX inquiry not only reassures investors about Woolworths’ transparency but also highlights the challenges of interpreting statutory versus underlying earnings in a complex retail environment. The market will be watching closely how Woolworths manages ongoing restructuring and the performance of its BIG W and MyDeal segments in the coming year.
Bottom Line?
Woolworths’ clear communication and adherence to disclosure rules set the stage for investor confidence as it navigates restructuring and market volatility.
Questions in the middle?
- How will Woolworths’ restructuring efforts impact future statutory earnings?
- Will the market continue to focus on underlying earnings over statutory figures?
- How might competitor performance influence Woolworths’ FY2026 outlook?
