Woolworths Holdings FY25 Results For The 52 Weeks Ended 29 June 2025
HIGHLIGHTS*
*To facilitate year-on-year comparison, this media release focuses on the pro forma 52-week financial information for continuing operations. The Group results are for the 52 weeks ended 29 June 2025, and not directly comparable to the 53 weeks ended 30 June 2024.
Commenting on the results, WHL Group CEO, Roy Bagattini, said: “This year’s results reflect the continued strength and resilience of our premium Food business, but also the transformation undertaken across our apparel businesses. Following significant investment over the past few years, we have completed the heavy lifting, which now positions each of our businesses to deliver to their true and full potential through our loved and trusted brands.”
GROUP PERFORMANCE
Group turnover and concession sales grew by 6.1% and by 6.8% on a constant currency basis, and by 6.4% and 7.3% in the second half, respectively, notwithstanding the challenging macroeconomic conditions across both geographies, and significant levels of uncertainty arising from global trade relations. Adjusted Earnings Before Interest and Tax (‘aEBIT’) declined by 10.9% to R5.2 billion, while Adjusted Earnings Before Interest, Tax, Depreciation, and Amortisation (‘aEBITDA’) decreased by a lesser 3.8% to R8.7 billion, reflecting the impact of investment in our various strategic and growth-enabling initiatives.
As reported in our interim results, the Group successfully disposed of its property in Melbourne, Australia for A$223.5 million, recognising R792 million profit on disposal.
Earnings per share (EPS) were down 1.4%, impacted by impairments to underperforming CRG brands and the one-off sale of the Australian property, with Headline EPS and adjusted diluted Headline EPS declining by 23.9% and 19.2%, respectively.
WOOLWORTHS
Woolworths South Africa delivered a strong performance in the face of ongoing macroeconomic pressures. Notwithstanding subdued consumer sentiment and constrained discretionary spend, the business achieved strong turnover and concession sales growth of 9.4% for the full year, and 9.8% in the second half. This supported adjusted EBITDA growth of 6.8% for the full year, and 10.9% growth in the second half.
WOOLWORTHS FOOD
Woolworths Food once again delivered above-market performance, reinforcing its position as South Africa’s most trusted food retailer. Turnover and concession sales grew by 11.0% for the year, with sector-leading growth of 7.7% on a comparable-store basis. Excluding the Absolute Pets acquisition, Food sales grew by 9.2%, highlighting continued strong momentum in the core business. Positive underlying volume growth was driven by increased footfall and larger basket sizes, supported by a strong innovation pipeline and enhanced customer experience.
Woolies Dash, the Group’s on-demand platform, achieved sales growth of 41.6% for the period. Overall online channels continued their rapid expansion, with online Food sales growing 32.9% and contributing 6.6% to total Food sales.
Gross profit margin expanded by 20 basis points to 24.9%, underpinned by effective promotions, volume benefits and supply chain efficiencies, which more than offset the impact of a growing online channel and ongoing investment in the customer proposition. aEBITDA increased by 11.6% to R4.7 billion, while aEBIT grew 7.4% to R3.6 billion, delivering an aEBIT of 6.9% for the full year, and 7.0% in the second half. Return on Capital Employed remains the highest in the sector at north of 40%.
WOOLWORTHS FASHION, BEAUTY AND HOME (‘FBH’)
In Fashion, Beauty, and Home, turnover and concession sales increased by 4.7% for the period, with comparable store sales up 5.1% and full-price sales exceeding 80% of total sales. Trading momentum improved throughout the period, delivering sales growth of 7.0% in the second half, through improved product availability, as product flow challenges experienced in the first half were resolved.
The Beauty business continues to gain market share, delivering excellent growth of 14.7% over the period, and reaffirming Woolworths’ position as the Beauty shopping destination in South Africa.
Online sales increased by 22.8% and contributed 6.6% to total FBH sales, supported by enhancements in digital platforms and customer experience.
Increased promotional activity, additional supply chain costs associated with the transformation of the Distribution Centre, and higher levels of inventory, coupled with the margin-dilutive impact of a growth Beauty contribution, resulted in gross profit margin declining by 120 basis points to 47.3%. For the year, aEBITDA declined marginally by 0.4% to R2.5 billion, whilst aEBIT contracted by 9.1% to R1.6 billion, resulting in an aEBIT margin of 10.4%. That said, improved momentum in the second half resulted in positive profit growth, with aEBIT and aEBITDA up 0.5% and 7.6%, respectively.
WOOLWORTHS VENTURES
Woolworths Ventures – the Group’s newly launched strategic growth accelerator which houses the Food Services, WCellar, Pet and WEdit businesses – delivered a very strong maiden result, with mid-teens sales growth and aEBIT growth of over 20%, notwithstanding the increased investment in both scale and innovation. This construct includes the Group’s acquisition of Absolute Pets, which continues to trade ahead of expectations – testament to the Group’s ability to make margin and earnings accretive acquisitions.
WOOLWORTHS FINANCIAL SERVICES (‘WFS’)Woolworths Financial Services delivered a strong result. The WFS book decreased by 2.7% on a year-on-year basis to the end of June 2025 and increased by 0.5% when excluding the sale of part of the legal book of R1.6 billion. Disciplined focus on quality growth resulted in additional credit of R1.9 billion granted in the second half, driven by both new accounts and credit limit increases on existing accounts. The impairment rate improved to 6.1%, compared to 7.0% in the prior year, and remains sector-leading. This performance highlights WFS’s continued prudent credit management, and the important role it plays in supporting customer loyalty and retention.
COUNTRY ROAD GROUP (‘CRG’)
Following its successful separation from David Jones, CRG completed a significant restructure during the year to reconfigure its operating model and reset its structural economics as a standalone business. This was undertaken in an accelerated timeframe and within a particularly unconducive macro backdrop. As a result of these factors, sales declined 5.4% for the year and 6.8% on a comparable store basis.
Gross profit margin declined by 390 basis points to 56.4% due to the high promotional activity dominating the sector and the weaker Australian dollar inflating input costs. Whilst expenses were well-controlled, the impact of the aforementioned factors amplified the degree of negative operational leverage during the period, resulting in aEBITDA declining by 41.1% to A$103.9 million.
OUTLOOK
Looking ahead, whilst inflation has eased and interest rates have begun to moderate, business and consumer confidence remains subdued in both geographies, with discretionary spend likely to remain constrained for the foreseeable future. Global uncertainty regarding the potential impact of higher US tariffs also presents additional headwinds to the macroeconomic outlook. Notwithstanding these factors, the Group is well positioned to benefit from its clear strategies, growing customer base, strengthened brands and foundational capabilities, and the investments made in new avenues of growth.
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