• Improving customer metrics after material disruption in H1
• Significant investment in price and promotions to provide more value
• Strong growth from adjacency businesses like Cartology, Rewards, and Services
• Clear priorities for 2025 including improving retail fundamentals and simplifying operations

Woolworths Group reported a 3.7% increase in group sales in H1 FY25, with group EBIT declining 14.2%. The decline in EBIT was largely driven by a 12.8% drop in Australian Food EBIT, impacted by 17 days of industrial action, value-seeking customer behavior, one-off supply chain costs, and lower EBIT from BIG W. Group customer scores were down due to the disruptions, but have since improved in H2. Australian Food sales grew 2.7%, or 3.7% excluding the impact of industrial action, while eCommerce sales grew 20%. New Zealand Food EBIT increased 15.2% as the transformation progressed, and Australian B2B EBIT rose 9.9%. BIG W EBIT declined 45.9% due to lower average selling prices despite strong item growth. The company outlined priorities for 2025 including improving price perception and trust, further enhancing availability, optimizing range and elevating Fresh and Own Brand, simplifying the operating model and support office, and unlocking the full potential of the group's adjacency businesses and major investments.

Woolworths expects H2 FY25 EBIT (including supply chain commissioning and dual-running costs) to reflect a mid-single digit decline on the prior year. In New Zealand Food, EBIT in H2 is expected to be above H2 last year. BIG W's H2 LBIT is expected to be broadly in line with the prior year.

Woolworths remains focused on providing value to customers and getting it right for all stakeholders. The company will continue to optimize its promotional activity and range, while simplifying its operating model and support office to drive efficiencies. Investments in adjacency businesses, BIG W and New Zealand transformation, and major capital projects are expected to unlock further growth potential.