Woolworths Holdings Limited · JSE:WHL
Woolworths — FY2026 Earnings Presentation
48 slides from Woolworths's earnings presentation, September 2026
Slide 1: Annual Results FY26
WOOLWORTHS HOLDINGS LIMITED ANNUAL RESULTS FY26
Slide 2: Presentation outline
PRESENTATION outline 01/ 02/ 03/ 04/ OVERVIEW OF THE YEAR FINANCIAL OVERVIEW STRATEGIC UPDATE QUESTIONS & AND OUTLOOK ANSWERS
Slide 3: Overview of the year
overview OF THE YEAR Sam Ngumeni Group CEO
Slide 4: Overview of the year
overview OF THE YEAR Encouraging first half momentum offset by tough second half • Reasonable Group performance in a difficult context, but below plan, and below our potential • Food remains the standout performer, gaining profitable market share supported by leading premium proposition and discipli
Slide 5: Financial overview
financial OVERVIEW Zaid Manjra Group Finance Director
Slide 6: Financial overview for the year
financial OVERVIEW FOR THE YEAR Improvement across all key financial metrics despite a slowing H2 due to the Middle East crisis impacting demand and operating costs Turnover and Adjusted Adjusted Adjusted diluted concession sales EBITDA EBIT HEPS R84.5bn R8.9bn R5.3bn 314.7cps +4.3% on LY +2.8% on L
Slide 7: Segmental adjusted EBIT
segmental ADJUSTED EBIT Steady growth in Food and WFS | FBH results well below expectations under challenging conditions | Positive CRG contribution | Impact of capital investments, exchange rates and fuel costs negatively impacted results Rm aEBIT aEBITDA +2.8% WSA aEBIT -1.8% +2.8% WSA aEBITDA +2.
Slide 8: South African macro context
South African MACRO CONTEXT Consumer indicators declining significantly in H2 following Middle East crisis | Consumers under pressure from burdening debt and higher cost of living CONSUMER INSIGHTS Consumer Diesel CPI VS DIESEL PRICE confidence price index CPI 5% -5 75% 6.0% 65% 4% 5.0% 55% -10 45%
Slide 9: Woolworths SA sales performance
Woolworths SA SALES PERFORMANCE % LY % LY % LY 8 8 8 6.8 7.0 6.2 6 5.4 6 5.7 6 4.4 4.4 4.1 4 4 4 2.6 2 2 2 - - - H1 H2 FY26 H1 H2 FY26 H1 H2 FY26 • S olid above-inflation sales growth in • Above-market sales growth • ood H1 growth | Pronounced G a tough trading environment drop-off in H2 demand • Co
Slide 10: Woolworths Food results
A good result with continued profitable market share gains, supported by quality and innovation, ongoing focus on customer experience, and investment in capability GP margin maintained through operational efficiencies, offsetting investment in DC expansion, higher fuel costs and increased online con
Slide 11: Fashion, Beauty and Home results
Positive H1 result offset by a disappointing H2/Q4 performance | Slowing H2 sales growth exacerbated by GP margin dilution resulted in declining aEBIT GP margin diluted by clearance of excess inventory and kidswear price investment | Lower profit contribution from Rest of Africa, together with forex
Slide 12: Woolworths Financial Services results
Solid performance in a challenging macro and consumer credit environment Closing book +5.6% | Growth in non-interest revenue +17.4% | Higher impairment coverage due to deteriorating macro-environment in H2; remains best in sector | Costs well controlled, enabling a ~19% ROE Closing book Net interest
Slide 13: Australian macro context
Australian MACRO CONTEXT Retail sector already under stress aggravated by geo-political pressures and interest rate hikes | Sector remains intensely promotional CONSUMER SENTIMENT HOUSEHOLD CONSUMPTION AND INCOME Average since 1996 = 100 % % index index Real, year-ended growth 8 8 Disposable income
Slide 14: Country Road Group sales performance
Country Road Group SALES PERFORMANCE % LY • Comp growth +1.6% 4 • P ositive H1 sales growth | H2 recovery hampered by Middle East crisis and 2.3 rising interest rates 2 • Improved quality of sales with 1.0 reduced clearance and promotions, - notwithstanding heavily discounted retail sector (0.5) • B
Slide 15: Country Road Group profitability
Pleasing return to full-year profitability on an improved H2 result albeit below our expectations GP margin gains from improved quality of sales | Good cost control from operating model reset | Disciplined inventory management resulting in improved GP margin and lower inventory levels Turnover Gross
Slide 16: Capital expenditure
capital EXPENDITURE Significant multi-year strategic projects nearing completion | Planned capex spend now increasingly customer-facing | Increased investment in digital and technology, while continuing to invest in store network Investments in new generation stores and Food DC expansion | Continued
Slide 17: Group balance sheet
group BALANCE SHEET Healthy balance sheet and improved return metrics | Gearing remains within target Net borrowings ROCE • Balance sheet health supports investments in growth • Significantly improved working capital from R5.9bn WSA net debt: R7.0bn | Australia 17.0% 16.4% LY reduced inventory level
Slide 18: Cash flow
cash FLOW Strong free cash flow of R4.0bn from operating activities and reduction in working capital | Share repurchases, including employee share schemes of R1 033m | Cash conversion at 105% | FCF per share of R4.50 per share Rm 216 9 500 462 8 858 7 500 (1 591) FCF per share (624) R4.50 (868) 5 50
Slide 19: FY27 first seven weeks trading and outlook
fy27 FIRST SEVEN WEEKS TRADING AND OUTLOOK FOOD • +3.2% sales growth • H1 price movement expectation 3.5% - 4.5% (YTD 3.1%) • Net space planned increase of 3.0% - 3.5% for full year FBH • +1.7% sales growth • H1 price movement expectation 4.0% - 5.0% (YTD -0.3%; Fashion -1.7%) • Net space expected f
Slide 20: Strategic update & outlook
strategic UPDATE & OUTLOOK Sam Ngumeni Group CEO
Slide 21: My perspective of the group
MY perspective OF THE GROUP I am clear on what will drive future performance, on what must be done, and what must change, and we are acting decisively to do just that • Strategic direction of our underlying businesses is broadly sound; our challenge lies in where and how we’ve focused our time, effo
Slide 22: The power of our Food business
THE power OF OUR FOOD BUSINESS Our strategies, capital allocation, and execution must give effect to a single customer-centred, brand-led ambition, anchored in our premium Food business • Food is our heartland, strongest competitive advantage and greatest differentiator • Primary engine of brand equ
Slide 23: The shifts we are making
THE shifts WE ARE MAKING We are reorienting the Group around Foods, with carefully selected adjacent categories strengthening the customer proposition, and our own ecosystem SHIFT 1: PRIORITISING GROWTH OPPORTUNTIES IN FOOD We are prioritising growth opportunities within our Food ecosystem to increa
Slide 24: The shifts we are making
THE shifts WE ARE MAKING We are reorienting the Group around Foods, with carefully selected adjacent categories strengthening the customer proposition, and our own ecosystem SHIFT 2: HONING THE ROLE OF F | B | H • Scaling select growth adjacencies where Food brand equity translates most strongly int
Slide 25: WHL Exco
WHL exco OUR LEADERSHIP TEAM HAS BEEN RECONFIGURED TO DRIVE CLEARER OWNERSHIP, FASTER DECISIONS, AND SHARPER ACCOUNTABILITY WHERE VALUE IS CREATED. SAM NGUMENI ZAID MANJRA CHANTEL REDDIAR MANIE MARITZ CHAN PILLAY EXECUTIVE DIRECTOR AND EXECUTIVE DIRECTOR AND DIRECTOR: GOVERNANCE, CHIEF EXECUTIVE OFF
Slide 26: A moment of reset
Amoment OF RESET
Slide 27: Outlook
outlook Notwithstanding external headwinds, our reset Group will convert the strength of our brand, people and capabilities into higher-quality earnings, stronger returns and sustainable long-term value creation • Near-term trading conditions expected to remain challenging with continued pressure on
Slide 28: We have a brilliant brand, with a brilliant future
WE HAVE A BRILLIANT BRAND, WITH A BRILLIANT FUTURE. WE HAVE CLARITY ON WHAT WILL DRIVE FUTURE PERFORMANCE, WHAT MUST BE DONE, WHAT MUST CHANGE AND WE HAVE THE CONVICTION TO ACT DECISIVELY.
Slide 29: Thank you
To our suppliers To our people for and partners for your commitment your expertise and energy and collaboration THANK you! To our customers for your loyalty and trust
Slide 30: Appendix
APPENDIX
Slide 31: Appendix contents
appendix CONTENTS • FINANCIAL HIGHLIGHTS • GROUP PERFORMANCE • GROUP INCOME STATEMENT • IMPACT OF FOREIGN EXCHANGE AND FUEL COSTS • RECONCILIATION OF ADJUSTED HEADLINE EARNINGS • GROUP BALANCE SHEET • GROUP NET DEBT • AUSTRALIAN BALANCE SHEET • INCOME STATEMENTS BY BUSINESS • IFRS 16 | DEPRECIATION
Slide 32: Financial highlights
financial HIGHLIGHTS • Positive sales growth for the year across all segments | Slowing growth from H1 to H2 (particularly in Q4) due to impact of macros on consumer spending • adHEPS increased by 4.6% and aEBIT was up 3.2% in constant currency • Food delivered positive profit growth, notwithstandin
Slide 33: Group performance
group PERFORMANCE H2 FY26 Full year Turnover and concession sales R42.0bn R84.5bn +3.3% on LY +4.3% on LY Adjusted PBT R1.7bn R3.8bn +5.0% on LY +2.4% on LY Adjusted EBIT R2.5bn R5.3bn +3.1% on LY +2.8% on LY Adjusted EBITDA R4.3bn R8.9bn +2.4% on LY +2.8% on LY Adjusted diluted HEPS 314.7cps +3.7%
Slide 34: Group income statement
group INCOME STATEMENT Jun 2026 Jun 2025 % Rm Rm change Turnover and concession sales 84 510 80 989 4.3 Positive growth across all businesses Gross profit 28 196 27 279 3.4 Higher promotions in FBH to clear excess Adjusted EBITDA 8 920 8 679 2.8 inventory; price investment Adjusted EBIT 5 337 5 194
Slide 35: Impact of foreign exchange and fuel costs
impact OF FOREIGN EXCHANGE* AND FUEL COSTS As Forex Fuel Excluding reported impact impact forex & fuel % Rm Rm Rm Rm LY Woolworths Food 3 707 25 25 3 757 4.1 Woolworths Fashion, Beauty and Home 1 375 49 4 1 428 (12.4) Woolworths Financial Services (50% of PAT) 228 – – 228 5.6 Country Road Group 27 1
Slide 36: Reconciliation of adjusted headline earnings
reconciliation OF ADJUSTED HEADLINE EARNINGS Jun 2026 Jun 2025 % Rm Rm change Basic earnings 2 319 2 443 (5.1) Non-core HEPS adjustments (post-tax) 27 (12) Abnormal capital items (pre-tax) 178 176 Impairment of assets 161 968 Loss/(profit) on disposal of property, plant and equipment and investment
Slide 37: Group balance sheet
group BALANCE SHEET Constant Jun 2026 Jun 2025 currency Rm Rm % change Assets Property, plant and equipment and intangible assets 16 343 15 993 2.9 Right-of-use assets 7 277 7 376 (0.3) Investments in joint ventures 1 239 1 228 0.9 Lower inventory levels in FBH and CRG Inventories 8 069 8 887 (8.6)
Slide 38: Group net debt
group NET DEBT Jun 2026 Jun 2025 WHL Net debt (Rm) 5 904 5 626 Interest-bearing debt 8 749 9 349 Net cash and cash equivalents (2 845) (3 723) Unutilised committed facilities – Group 7 586 4 511 WSA Net debt (Rm) 6 966 7 734 Interest-bearing debt 8 613 8 764 Net cash and cash equivalents (1 647) (1
Slide 39: Australian balance sheet
Australian BALANCE SHEET Jun 2026 Jun 2025 A$m A$m Assets Property, plant and equipment 83 99 Intangible assets* 233 240 Right-of-use assets 226 244 Inventories 146 170 Receivables, derivatives, deferred tax and tax assets 153 141 Total assets 841 894 Liabilities, excluding borrowings (204) (197) Le
Slide 40: Woolworths Food income statement
H2 2026 H2 Jun 2026 Jun 2025 % Rm % Rm Rm change Turnover and concession sales 28 063 4.4 55 369 52 389 5.7 Gross profit margin 25.0% 24.9% 24.9% Expenses 5 084 5.2 10 060 9 444 6.5 Adjusted EBIT 1 926 2.9 3 707 3 591 3.2 Adjusted PBT 1 762 2.9 3 371 3 277 2.9 Adjusted EBITDA 2 602 5.3 5 037 4 748 6
Slide 41: Fashion, Beauty and Home income statement
H2 2026 H2 Jun 2026 Jun 2025 % Rm % Rm Rm change Turnover and concession sales 7 800 2.6 16 078 15 394 4.4 Gross profit margin 46.3% 46.0% 47.3% Expenses 2 983 6.2 5 969 5 639 5.9 Adjusted EBIT 604 (27.8) 1 375 1 600 (14.1) Adjusted PBT 429 (34.7) 1 030 1 240 (16.9) Adjusted EBITDA 1 111 (14.5) 2 35
Slide 42: Woolworths Financial Services income statement
Jun 2026 Jun 2025 % Rm Rm change Average total financial services assets 15 330 15 240 0.6 % % Income statement to book to book Net interest income 1 867 12.2 1 865 12.2 0.1 Impairment charge 1 080 7.0 937 6.1 15.3 Risk-adjusted margin 787 5.1 928 6.1 (15.2) Non-interest revenue 1 305 8.5 1 112 7.3
Slide 43: Country Road Group income statement
H2 2026 H2 Jun 2026 Jun 2025 % A$m % A$m A$m change Turnover 498.6 (0.5) 1 067.2 1 056.6 1.0 Gross profit margin 57.5% 57.7% 56.4% Expenses 301.9 (0.9) 621.3 623.6 (0.4) Adjusted EBIT (12.5) 61.3 2.3 (18.1) >100 Adjusted PBT (25.8) 41.5 (24.7) (41.6) 40.6 Adjusted EBITDA 42.0 42.9 113.3 103.9 9.0 Ad
Slide 44: FY26 group segmental income statement
fy26 GROUP SEGMENTAL INCOME STATEMENT Woolworths Country Road Food FBH Logistics WFS Group Treasury Intragroup Group Jun 2026 Rm Rm Rm Rm Rm Rm Rm Rm Turnover and concession sales 55 369 16 078 827 – 12 236 – – 84 510 Concession sales (1 349) (320) – – – – – (1 669) Turnover 54 020 15 758 827 – 12 2
Slide 45: FY25 group segmental income statement
fy25 GROUP SEGMENTAL INCOME STATEMENT Woolworths Country Road Food FBH Logistics WFS Group Treasury Intragroup Group Jun 2025 Rm Rm Rm Rm Rm Rm Rm Rm Turnover and concession sales 52 389 15 394 767 – 12 439 – – 80 989 Concession sales (1 161) (291) – – – – – (1 452) Turnover 51 228 15 103 767 – 12 4
Slide 46: IFRS 16, depreciation and amortisation
IFRS 16 | DEPRECIATION AND AMORTISATION Group WSA CRG Lease liabilities Rm Rm A$m Jun 2026 9 676 6 557 285 Jun 2025 9 816 6 313 308 Right-of-use assets Jun 2026 7 277 4 716 226 Jun 2025 7 376 4 513 244 Average remaining lease terms (years) Jun 2026 4.1 4.8 2.1 Jun 2025 4.0 4.8 2.2 With no options: J
Slide 47: Trading space and store locations
trading SPACE | STORE LOCATIONS Projected Projected Projected Jun 2025 % Jun 2026 % Jun 2027 % Jun 2028 % Jun 2029 TRADING SPACE 000m2 change 000m2 change 000m2 change 000m2 change 000m2 Woolworths Fashion, Beauty and Home 421.8 (0.7) 418.8 – 418.7 0.9 422.5 1.1 426.9 South Africa 374.2 (1.3) 369.2
Slide 48: Disclaimer
disclaimer Shareholders are advised that the information in this presentation has not been reviewed and reported on by Woolworths Holdings’ external auditors and it does not constitute a profit forecast. Woolworths Holdings has taken reasonable efforts to ensure the accuracy and completeness of the