Woolworths Holdings Limited · JSE:WHL
Woolworths — H1 FY2025 Earnings Presentation
43 slides from Woolworths's earnings presentation, Feb 26, 2025
Slide 1: Half-Year Results Presentation ASX announcement
26 February 2025 ASX Market Announcements Office Australian Securities Exchange 20 Bridge Street Sydney NSW 2000 Half-Year Results Presentation Attached for release to the market is the Half-Year Results Presentation for the period ended 5 January 2025. Authorised by: Dom Millgate, Group Company
Slide 2: Woolworths Group 2025 Half-Year Results
Woolworths Group 2025 Half-Year Results For the 27 weeks ended 5 January 2025 Amanda Bardwell, Managing Director and CEO Stephen Harrison, CFO 26 February 2025
Slide 3: Acknowledgment of Country and Contents
Woolworths Group Half-Year Results 2025 2 Acknowledgment of Country Contents Woolworths Group acknowledges the many Traditional Owners of the lands on which we operate and pay our respects to their Elders past and present. We recognise their strengths and enduring H25 Group summary and progress conn
Slide 4: H25 summary and key actions
Woolworths Group Half-Year Results 2025 3 H25 summary and key actions Recovering from challenging H1; clear priorities for 2025 Group sales1 Group eCom sales Group VOC NPS Group EBIT1 Group NPAT1,3 Interim dividend $35.9b $4,676m 44 $1,451m $739m 39c 3.7% vs. H24 18.3% vs. H24 6 pts from Dec’2
Slide 5: Food declining as a proportion of household spend as inflation remains low
Woolworths Group Half-Year Results 2025 4 Food declining as a proportion of household spend as inflation remains low and stable Share of average Australian Household Total Woolworths Food Retail Average Price Change Expenditure on Food1 (% yoy) Food % of total spend Average Long Life Fresh Total Foo
Slide 6: Cost-of-living pressures driving value-seeking behaviours
Woolworths Group Half-Year Results 2025 5 Cost-of-living pressures continuing to drive value-seeking behaviours with cross-shopping and shift to convenience increasing Price is the #1 customer priority Customer cross-shopping increasing Shift to convenience Top 3 customer value priorities, Percentag
Slide 7: Focused on providing compelling value to customers in H1
Woolworths Group Half-Year Results 2025 6 Focused on providing compelling value to customers in H1; improving price perception remains a top priority Delivered more impactful More than 3,800 5.2% growth in Own promotions with larger savings products included and Exclusive Brand for customers. as par
Slide 8: Many factors led to a challenging H1 in Australian Food
Woolworths Group Half-Year Results 2025 7 Many factors led to a challenging H1 in Australian Food; improvement in VOC NPS and availability in H2 to date Customer and availability metrics impacted in H1 Key factors impacting H1 Customer changes H1 Australian Food Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 De
Slide 9: eCommerce and digital engagement continues to grow
Woolworths Group Half-Year Results 2025 8 eCommerce and digital engagement continues to grow Digital & Media 30m 4m 15.3% 1,000 Average weekly Weekly active Increase in Cartology New screens rolled out as visits to Group Woolworths and revenue vs. H24 part of Vicinity partnership digital platforms;
Slide 10: A strong store network remains critical to our success
Woolworths Group Half-Year Results 2025 9 A strong store network remains critical to our success for in store and eCommerce customers 1,113 Investing in better customer experiences Total store network1 as at 5 34 40 33 New Renewals Front of Store Direct to Boot Now sites the end of H1 Supermarkets c
Slide 11: Important milestones reached in supply chain transformation
Woolworths Group Half-Year Results 2025 10 Important milestones reached in supply chain transformation Moorebank National DC • Officially opened November 2024 • Increasing volumes with full ramp up expected by Q1 F26 • Supported the recovery post industrial action • Capacity for 2.3m cartons per wee
Slide 12: Customers recognising improvements from New Zealand transformation
Woolworths Group Half-Year Results 2025 11 Customers recognising improvements from New Zealand transformation Brand and value reset 110 11 61 Stores Renewals Value for Money rebranded1; 35 completed VOC completed in H25 in H25 +1 pt vs. H24 Fresh improvements 9.5% 272 76 Fruit & Veg Fruit & Veg Own
Slide 13: BIG W H1 performance impacted by investment in value
Woolworths Group Half-Year Results 2025 12 BIG W H1 performance impacted by investment in value, range reset and challenges in seasonal clothing H1 performance 12 • Customer momentum solid with transactions and items up on the prior year in response to strong value offer. Store-controllable VOC rema
Slide 14: Progress on safety and sustainability initiatives during the half
Woolworths Group Half-Year Results 2025 13 Progress on safety and sustainability initiatives during the half 13.45 Best safety $24m training program People Total Recordable Injury Awarded for virtual reality Of direct community Frequency Rate training at annual National contributions in H25 Safety C
Slide 15: Contents
Woolworths Group Half-Year Results 2025 14 Contents H25 Group summary and progress 3 Amanda Bardwell Group financial results and capital management Stephen Harrison Group trading performance Key balance sheet metrics 15 Capital management framework Cash flow summary Capital expenditure Capital manag
Slide 16: Group financial results and capital management
Group financial results and capital management
Slide 17: H25 results summary
Woolworths Group Half-Year Results 2025 16 H25 results summary Group sales1 • Group sales growth of 3.7%. Excluding Petstock and industrial action (IA), Group sales increased by ~3.2% $35.9b • IA impacted Australian Food sales by ~$240m. Ex-IA sales increased ~3.7% 3.7% vs. H24 • Strong Group eCom
Slide 18: Group trading performance
Woolworths Group Half-Year Results 2025 17 Group trading performance H25 sales summary H25 EBIT summary H25 H24 $ MILLION (27 WEEKS) (27 WEEKS) CHANGE H25 H24 $ MILLION (27 WEEKS) (27 WEEKS) CHANGE ~3.7% ex-IA ~(5)% ex-IA and incremental Before significant items supply chain costs Australian Food 26
Slide 19: Inventory increase; ROFE impacted by lower EBIT
Woolworths Group Half-Year Results 2025 18 Inventory increase due to investment to improve availability and timing; ROFE impacted by lower EBIT Average inventory and payables days1 • Average inventory up 1.6 days compared to H24 Inventory Payables • Increased inventory holdings due to investment in
Slide 20: Woolworths Group capital management framework
Woolworths Group Half-Year Results 2025 19 Woolworths Group capital management framework Strong growth One of Australia’s Leading market Defensive opportunities in Strong underlying most recognised and position in Food & characteristics eCommerce and cash flow valuable brands Everyday Needs through
Slide 21: Cash flow
Woolworths Group Half-Year Results 2025 20 Cash flow $ MILLION H25 H24 CHANGE Investment in availability, longer international lead times and Group EBITDA before significant items 2,956 3,079 (4.0)% earlier receipt of BIG W seasonal inventory driving lower working Working capital and non-cash moveme
Slide 22: Operating capex reflects increased spend on renewals
Woolworths Group Half-Year Results 2025 21 Operating capex reflects increased spend on renewals; F25 spend at low end of previous range Sustaining capex $ MILLION H25 H24 $ MILLION H25 H24 762 702 SIB 170 158 Sustaining capex Renewals 297 193 Growth capex 239 205 Supply chain 97 125 Operating capex
Slide 23: Dividends and funding
Woolworths Group Half-Year Results 2025 22 Dividends and funding 39 cps interim dividend Debt maturity profile ($m)1 Dividends (cents per share) 1,200 144 40 104 800 58 57 400 104 46 47 39 - F25 F26 F27 F28 F29 F30 F31 F32 F33 F34 F35 F23 F24 F25 Interim Final Special Capital markets debt Bank debt
Slide 24: Contents
Woolworths Group Half-Year Results 2025 23 Contents H25 Group summary and progress 3 Amanda Bardwell Group financial results and capital management 15 Stephen Harrison Current trading and outlook 24 Amanda Bardwell
Slide 25: Current trading and outlook
Woolworths Group Half-Year Results 2025 24 Current trading and outlook1 • Sales for the first 7 weeks of H2 up 3.3%2 • Cost-of-living pressures expected to persist in H2 and value-seeking behaviours to continue • Despite focus on optimising promotional activity, livestock costs in red meat expected
Slide 26: 2025 focus areas
Woolworths Group Half-Year Results 2025 25 2025 focus areas Get it right • Improve price perception and trust for our • Further improve availability customers • Optimise range and elevate Fresh and Own Brand • Review organisational structure and operating model Simplify the • Support Office simplifi
Slide 27: Woolworths Group remains a strong business
Woolworths Group Half-Year Results 2025 26 Woolworths Group remains a strong business Growth Strong market Leading Rewards Passionate and opportunities in Solid financial position in Food & program; digital and talented team eCommerce and position Everyday Needs AI capabilities adjacencies
Slide 28: Q&A
Woolworths Group Half-Year Results 2025 Q&A
Slide 29: Woolworths Group Half-Year Results 2025
Woolworths Group Half-Year Results 2025 28
Slide 30: Australian Food
Woolworths Group Half-Year Results 2025 29 Australian Food H25 H24 CHANGE Total sales ($m) 26,655 25,945 2.7% EBITDA ($m) 2,417 2,556 (5.4)% EBIT ($m) 1,391 1,595 (12.8)% Gross margin (%) 28.6 28.9 (32) bps CODB (%) 23.4 22.8 61 bps EBIT to sales (%) 5.2 6.1 (93) bps ROFE (%) 29.1 31.8 (262) bps Sal
Slide 31: Australian Food
Woolworths Group Half-Year Results 2025 30 Australian Food Build advocacy for Today’s Fresh Food People SALES PERFORMANCE BY BUSINESS ($m) • Donated over 16 million meals through food relief partners and diverted 89% of food waste from stores H25 H24 Change • Opened 20 new Mini Woolies stores in H25
Slide 32: Australian Food - WooliesX
Woolworths Group Half-Year Results 2025 31 Australian Food - WooliesX eComX SALES PERFORMANCE BY PLATFORM ($m) • 22+ million orders fulfilled, up 25% vs. H24 • 88% of orders fulfilled within 24 hours in H25 and 31% of orders fulfilled within two hours in Q2’25 H25 H24 Change • Safety telematics now
Slide 33: Australian B2B
Woolworths Group Half-Year Results 2024 32 Australian B2B
Slide 34: Australian B2B
Woolworths Group Half-Year Results 2025 33 Australian B2B B2B Food SALES PERFORMANCE BY BUSINESS ($m) SALES PERFORMANCE BY BUSINESS ($m) • Strong PFD sales growth driven by customer growth, particularly in QSR H25 H24 Change • Export meat sales up 8.4% to meet growing demand for Australian meat B2B
Slide 35: Woolworths Group Half-Year Results 2025
Woolworths Group Half-Year Results 2025 34
Slide 36: New Zealand Food
Woolworths Group Half-Year Results 2025 35 New Zealand Food Living our purpose and transforming our brand SALES PERFORMANCE BY BUSINESS ($m)1 • 35 stores rebranded to Woolworths New Zealand in H1 F25 with 110 stores rebranded to date H25 H24 Change • Ratified new two-year collective agreement for te
Slide 37: Woolworths Group Half-Year Results 2025
Woolworths Group Half-Year Results 2025 36
Slide 38: W Living
Woolworths Group Half-Year Results 2025 37 W Living H25 H24 CHANGE Total sales ($m) 3,083 2,656 16.1% EBITDA ($m) 166 130 29.4% EBIT ($m) 15 15 2.8% EBIT to sales (%) 0.5 0.5 (6) bps ROFE (%) (1.2)1 (1.4) 28 bps Expanded Woolworths Launch of two new MarketPlus with GMV of Named as a Product Petstock
Slide 39: BIG W
Woolworths Group Half-Year Results 2025 38 BIG W Continue to build momentum in customers SALES PERFORMANCE ($m) • Solid trading across key seasonal events with item growth of 4.1% vs. H24 • Rolled out Health & Beauty shop-in-shop format to another 66 stores • 7th most trusted brand in Australia with
Slide 40: Glossary
Woolworths Group Half-Year Results 2025 39 Glossary Active eCom customers Customers that have made a purchase online in the last four weeks AI Artificial intelligence B2B Business to business B2C Business to customer Cash realisation ratio Operating cash flow as a percentage of Group net profit afte
Slide 41: Glossary continued
Woolworths Group Half-Year Results 2025 40 Glossary continued Return on Funds Employed (ROFE) ROFE is calculated as EBIT before significant items for the previous 12 months as a percentage of average (opening, mid and closing) funds employed including significant items provisions Sales per square me
Slide 42: Glossary continued
Woolworths Group Half-Year Results 2025 41 Glossary continued Other non-IFRS measures used in describing the business performance include: • Earnings before interest, tax, depreciation and amortisation (EBITDA) • Change in average prices • Cash flow from operating activities before interest and tax
Slide 43: Disclaimer
Woolworths Group Half-Year Results 2025 42 Disclaimer This presentation contains summary information about Woolworths Group Limited (Woolworths Group) and its activities current as at the date of this presentation. It is sourced from and should be read in conjunction with Woolworths’ other periodic
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