Woolworths Full-Year Profit Drops 17%, Cuts Dividend

Woolworths Group reported a 17-19% decline in full-year net profit to approximately A$1.38 billion, with a 21% cut to its final dividend, reflecting a challenging 2024/25 financial year marked by increased costs and impairments. Despite a 3.6% rise in sales to A$69.1 billion, earnings before interest, tax, depreciation, and amortization fell 3.5%, impacted by industrial action, wage increases, and $569 million in impairments including a $346 million write-down for Big W. CEO Amanda Bardwell described the results as disappointing but expressed confidence in returning to profit growth in the 2025/26 fiscal year, citing early signs of improved customer satisfaction and a 2.1% increase in Australian supermarket sales in the first eight weeks, or 4% excluding tobacco. Woolworths faces tougher competition as its sales growth lags behind Coles, which reported a 4.9% increase in supermarket sales in the same period. The company aims to become a more focused, lower-cost retailer with a differentiated food offer, emphasizing rebuilding customer trust and simplifying operations to drive sustainable growth.