Woolworths Holdings reports mixed 2025 results amid macro headwinds

Woolworths Holdings Limited reported its audited group results for the 52 weeks ended June 29, 2025. Turnover and concession sales increased by 6.1% to R81.0bn, with turnover alone up 5.8% to R79.5bn. However, profit before tax decreased by 14.4% to R3.0bn, and adjusted profit before tax fell by 18.4% to R3.7bn. Earnings per share dropped by 1.4% to 273.4cps, with headline earnings per share seeing a decline of 23.9% to 268.1cps. The total dividend per share was declared at 188.0cps, a 29.2% decrease from the prior period's 265.5cps.

The Group’s South African operations showed resilience, with Woolworths South Africa delivering strong turnover and concession sales growth of 9.4%, supporting aEBITDA growth of 6.8%. In contrast, the Country Road Group reported a 5.4% decline in sales, experiencing negative operational leverage due to higher promotional activity and input costs, resulting in an aEBITDA decline of 41.1% to A$103.9 million and an aEBIT loss of A$18.1 million.

Despite operational challenges, the Group's net borrowings remained stable at R5.6bn. The return on capital employed was 16.4%, remaining above the weighted average cost of capital, although lower than the prior year's 18.7% due to reduced contributions from apparel businesses and increased capital investment.