Woolworths Group has reported a 1.7% increase in group sales but seen EBITDA and net profit drop in its full-year 2025 figures, a result its CEO Amanda Bardwell is calling ‘disappointing’.

Total group sales rose 1.7% to $69.1bn, or 3.6% normalised. Yet EBITDA before significant items decreased by 4.9% to $5.707bn, while EBIT before significant items fell by 14.6% to $2.75bn. Net profit after tax (NPAT) before significant items declined 19.1% to $1.385bn. Basic earnings per share (EPS) also dropped by 19.1% to 113.5 cents. However, after accounting for significant items, Group EBIT increased by 35.3% to $2,185 million, and NPAT rose to $963 million, up from $108 million in the previous year.

The financial results come off the back of five months of restructuring and a decided focus on several price-based elements from February: Lowering shelf prices, increasing specials and absorbing cost price increases on everyday items while also making pricing clear and easier to understand. It’s a change in strategy that will cost the supermarket giant $400m over the calendar year, and was prompted by higher inflation, the cost-of-living crisis and ongoing criticism of the profits and dominance of Australia’s two largest supermarket players.

“Value for Money continues to improve and our focus on availability and elevating retail execution is also contributing to momentum in customer scores,” Bardwell commented. “We have simplified the way we work with key management changes and an organisational structure better aligned to our strategic priorities. We are on track to deliver $400 million in above-store savings by the end of calendar 2025. We are committed to being a lower-cost business with a strong ongoing productivity agenda and a discipline of making every dollar count across Woolworths Group.”

Woolworths as a group has also been streamlining operations, and announced the closure of the MyDeal marketplace in June. It’s additionally consolidated a number of businesses internally to improve performance and elevate focus on the cornerstone Food business. 

According to the full-year report, Woolworths’ eCommerce sales experienced a normalised increase of 17.1%, with eCommerce penetration reaching 15.1% by the end of the year. W Living, which encompasses BIG W and Petstock, reported an 8.0% increase in sales to $5,638 million, but recorded a loss of $63 million due to BIG W’s performance. BIG W’s sales declined by 0.8% to $4,644 million, with a shift towards lower-priced items impacting gross margins. Conversely, Petstock’s sales increased by 101.8% to $859 million, reflecting a full year of ownership.

“In F26 we expect to return to profit growth following a disappointing F25. We will continue to rebuild customer trust through compelling value and retail execution excellence, simplify the way we work and become a more focused, lower-cost retailer with a differentiated Food offer at our core,” said Bardwell. “Some of this will take time but I am confident that the strength of our brands, assets and team can see us deliver a much-improved performance. I also wanted to acknowledge and thank our team for their efforts during a period of significant disruption and change.”

Woolworths Group Chair Scott Perkins further noted the focus on retail fundamentals and the simplification of the business to improve returns. Perkins stated, “Under Amanda’s leadership, we have intensified our focus on retail fundamentals and simplifying our business which will bring greater performance accountability and lead to improved returns.”