• F25 Group EBIT decline driven by Australian Food and BIG W, but Group EBIT growth expected in F26
• Key customer metrics improving in H2 through lower prices and focus on retail execution
• Strong EBIT growth from New Zealand and PFD; higher contribution from Media, Rewards & Services

Woolworths Group Limited has announced its full year results for the 52 weeks ended 29 June 2025. Group sales in F25 increased by a normalised 3.6% or 2.9% excluding Petstock, with Group EBIT before significant items decreasing by a normalised 12.6%, primarily due to lower EBIT contributions from Australian Food and BIG W. Excluding the impact on Australian Food of industrial action, incremental supply chain commissioning and dual-running costs, Group EBIT would have declined by 7.8% on a normalised basis. In Australian Food, customer scores in Q4 improved meaningfully on Q3, reflecting a strong focus on improving retail execution, improved value perception, and fewer external disruptions. Australian Food EBIT for F25 declined by a normalised 10.5% and by 8.1% in H2, driven by a lower gross margin, wage increases, a lower mix of in-store sales, and higher depreciation and amortisation. New Zealand Food had a strong year with EBIT up a normalised 40.6%, and the W Living segment, which includes BIG W, Petstock, Woolworths MarketPlus and Healthylife, reported a segment loss of $63 million compared to a loss of $29 million in the prior year. The company has made progress on its key focus areas for 2025, including getting it right for customers, simplifying the way it works, and unlocking the full potential of the Group. The company expects an improved financial performance in F26, driven by Australian Food, a continued recovery in New Zealand Food, and a return to profitability in BIG W.

In F26, the company expects Australian Food to return to mid to high single-digit reported EBIT growth, driven by progress on strategic priorities, benefits of above-store cost savings, and a more stable operating environment. However, the company is also facing some near-term challenges, including a material acceleration in the decline in Tobacco sales expected to impact EBIT by $80 - $100 million, and approximately $60 million of costs related to the end-of-life replacement of core retail systems. The company expects further improvement in New Zealand Food's financial performance in F26, and BIG W to be EBIT and cash flow positive.

Over the medium term, the company's ambition is to deliver sustainable mid to high single-digit EBIT growth through consistent growth from Woolworths Retail, improved profits from New Zealand Food and BIG W, and incremental growth from its complementary businesses and services. This is expected to support the company's double-digit total shareholder return aspiration.