Woolworths Group reported group sales increased 3.6% to $71.5 billion for fiscal year 2026, with net profit after tax up 15.4% to $1.599 billion before significant items, according to company financial disclosures released on August 26, 2026. The retail conglomerate achieved group EBIT growth of 12.7% to $3.1 billion, driven by strong trading in Australian Food and a return to profitability for BIG W.
Australian Food Sales and E-Commerce Growth Drive Performance
Australian Food sales increased 4.6% to $53.9 billion for the full year, with momentum accelerating in the second half to 5.7%, according to the company. Australian Food EBIT grew 8.5%, with second-half growth reaching 7%. Chief Executive Officer Amanda Bardwell noted that strong trading in the first eight weeks of fiscal year 2027 saw Australian Food sales climb 7.6%.
Australian Food e-commerce EBIT surged 70.3%. According to Managing Director of Group eComX Amitabh Mall, this profitability improvement stems from scale, disciplined productivity, and a favorable mix shift toward on-demand services, with 47% of deliveries now completed in under two hours.
Pro tip: Retail analysts tracking supermarket conglomerates often look at e-commerce direct-to-boot and on-demand delivery metrics as primary indicators of operational leverage and fulfillment efficiency.
Segment Breakdown: BIG W Recovery and PETstock Gains
BIG W returned to profitability, posting an EBIT of $64 million—a $97 million turnaround compared to the previous year—despite modest overall sales growth of 0.9%, according to the earnings report. PETstock delivered robust results, with sales increasing 12.3% and EBIT jumping 33.5%. Australian B2B sales rose 4.2% with a 13% increase in EBIT, while New Zealand sales increased 2.5% in local currency.
Chief Financial Officer Stephen Harrison reported that operating cash flow before interest and tax reached $6.5 billion, representing a 5.2% increase. Operating capital expenditure totaled $1.84 billion for fiscal year 2026, with fiscal year 2027 expenditure projected between $1.9 billion and $2 billion to support ongoing supply chain infrastructure investments.
Cost Management and Capital Returns
Woolworths delivered approximately $400 million in above-store cost savings, allowing the Cost of Doing Business as a percentage of sales to decline by 22 basis points in the Australian Food division. Net debt-to-EBITDA improved to 2.5x, which is lower than the previous financial year, according to company data.
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The board declared a final dividend of $0.52 per share, bringing the total ordinary dividend for the year to $0.97 per share, an increase of 15.5%. The payout ratio stands at 74.1%.
Did you know? Woolworths’ new Moorebank supply chain precinct features a fully operational National Distribution Center that utilizes pre-sorted pallets to reduce store-level handling time for retail team members.
Frequently Asked Questions
What was Woolworths Group’s total sales for fiscal year 2026?
Group sales increased 3.6% to $71.5 billion, according to company financial disclosures.
How did Australian Food perform during the period?
Australian Food sales grew 4.6% to $53.9 billion, with growth accelerating to 5.7% in the second half of the fiscal year.
What drove the profitability turnaround at BIG W?
BIG W posted an EBIT of $64 million—marking a $97 million improvement over the prior year—supported by disciplined inventory and operational management.
What is the dividend payout for shareholders?
Woolworths announced a final dividend of $0.52 per share, bringing the total ordinary dividend to $0.97 per share, up 15.5%.
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