Wrap Text
Unaudited Interim Results for the 26 weeks ended 28 December 2025, Dividend Declaration and Board Committee Change
Woolworths Holdings Limited
(Incorporated in the Republic of South Africa)
Registration number 1929/001986/06
LEI: 37890095421E07184E97
Share code: WHL
Share ISIN: ZAE000063863
Bond Company code: WHLI
("the Group")
UNAUDITED INTERIM GROUP RESULTS FOR THE 26 WEEKS ENDED 28 DECEMBER 2025, CASH DIVIDEND DECLARATION AND BOARD COMMITTEE CHANGE
FINANCIAL OVERVIEW
Turnover and concession sales R42.5bn (+5.4% on LY)
Turnover R41.6bn (+5.2% on LY)
Profit before tax R2.0bn (-23.0% on LY)
Adjusted profit before tax R2.0bn (+0.3% on LY)
Adjusted EBITDA R4.6bn (+3.2% on LY)
Earnings per share 166.6cps (-32.1% on LY)
Headline earnings per share 167.4cps (+9.6% on LY)
Adjusted diluted headline earnings per share 170.3cps (+0.7% on LY)
Interim dividend per share 118.0cps (+10.3% on LY)
Net borrowings (excluding lease liabilities) R5.8bn (R4.7bn LY)
Return on capital employed 16.6% (17.0% LY)
GROUP
The Group's results for the first half of the 2026 financial year ("period") reflect the ongoing progress in our various strategic initiatives,
with improving performance in our apparel businesses and continued above-market growth in our leading Food business. This is notwithstanding a
constrained trading environment across both geographies. In Southern Africa, discretionary spend remains subdued, despite the easing inflationary
and interest rate environment, while Australia's prolonged discounting in a high-cost inflationary environment continues to exert pressure
on retail footfall and spend. Against this backdrop, the Group delivered pleasing turnover and concession sales growth for the period of 5.4%,
and 6.1% on a constant currency basis, with positive sales growth in all segments of the business.
Gross profit margins have, however, been under pressure, due to a combination of long-term capacity investment, targeted price investment,
the stronger growth of lower margin channels and categories, and increased promotions to clear excess inventory. Expenses have been
well controlled to ensure positive profit growth for the half. Group adjusted earnings before interest and tax ("aEBIT") increased by 2.5%
on the prior period, to R2.9 billion, whilst adjusted earnings before interest and tax, depreciation and amortisation ("aEBITDA") increased
by 3.2% to R4.6 billion, reflecting the impact of the investment in our various strategic and growth-enabling initiatives.
Adjusted diluted headline earnings per share grew by 0.7% to 170.3cps over the prior period, while headline earnings per share was up by
a pleasing 9.6% to 167.4cps. Earnings per share growth was negatively impacted by the inclusion of the profit on sale of the Bourke Street
property and the rental received on the property, in the prior period.
The Group's previously communicated share buyback programme commenced in September 2025, with 6.9 million shares repurchased in the period,
at a weighted average share price of R51.23.
The Group ended the period with net borrowings of R5.8 billion (versus R5.6 billion at June 2025), with the Australian subsidiaries in a
net cash position of A$159.1 million. Our focus on cash generation has resulted in cash conversion increasing to 109.8% from 77.9% in
the prior period. The net debt to EBITDA ratio of 1.48 times is within our targeted gearing ratio and the Return on Capital Employed
of 16.6% remains well above the cost of capital of 11.4%.
WOOLWORTHS
Woolworths South Africa delivered above-market turnover and concession sales growth of 6.8% for the period,
notwithstanding relatively subdued consumer confidence and spend.
WOOLWORTHS FOOD
Our Food business continued to deliver strong turnover and concession sales growth of 7.0% and 5.2% on a comparable-store basis, with
consistent month-on-month market share gains. This was supported by positive underlying volume growth driven by the continued focus and
investment in our premium food offering and overall customer experience. Sales growth moderated to 5.3% in the last seven weeks, with
price movement averaging 4.6% for the half. Revenue through Woolies Dash grew by 23.0%, with the online channel now contributing 7.2%
to SA Food sales. Net trading space increased by 4.3% (weighted basis: 1.8%) on the prior period.
The successful expansion of the Midrand distribution centre ("DC") is well progressed, albeit impacting the near-term gross profit margin given
the increased depreciation arising from this significant investment. Notwithstanding this, and the dilutionary impact of a growing online channel,
gross profit margin decreased by only 10bps to 24.8%, benefitting from improved promotional effectiveness. An increase in operating expenses
from investments in growth initiatives resulted in expense growth of 7.9%. Adjusted operating profit grew by 3.5% to R1 780 million, delivering
an operating profit margin of 6.5%. Pleasingly, adjusted EBITDA of R2 435 million increased by 7.0%, in line with topline growth.
WOOLWORTHS FASHION, BEAUTY AND HOME ("FBH")
FBH turnover and concession sales increased by 6.2% and by 6.4% on a comparable-store basis, supported by improved product availability as a
result of our transformational value chain initiatives. This momentum was maintained over Black Friday and the festive season, with sales growth
of 6.1% in the last seven weeks of the period, implying encouraging market share gains over the half and positive underlying volume growth.
Our Beauty and Home businesses delivered stronger growth of 8.9% and 14.0%, respectively. The ongoing initiative to optimise space and efficiency
metrics resulted in net trading space decreasing by a further 1.9% relative to the prior period, whilst online sales contributed 6.2% to SA FBH sales.
Price movement averaged 2.8% over the period. This incorporated Fashion inflation at 1.3%, resulting from our price investment in Kidswear
and the clearance of excess inventory emanating from the prior period's DC transition. This impacted the gross profit margin, which declined
by 50bps to 45.8%. Expenses were well controlled, with growth at 5.5%, notwithstanding the increased investments and associated costs of
strategic initiatives. Adjusted operating profit increased by 1.0% to R771 million, implying an operating profit margin of 9.3% for the period.
Adjusted EBITDA increased by 4.5% to R1 244 million.
WOOLWORTHS FINANCIAL SERVICES ("WFS")
The WFS book increased by 1.8% on a year-on-year basis to the end of December 2025, and increased by 2.6% when excluding the sale of part
of the legal book. This was driven through disciplined focus on quality growth through both new accounts as well as credit limit increases
on existing accounts. The annualised impairment rate for the six months ended 31 December 2025 was 6.4%, and remains sector leading.
COUNTRY ROAD GROUP ("CRG")
CRG sales increased by 2.3% for the period and by 2.5% on a comparable-store basis. The Country Road, Witchery and Politix brands traded
ahead of the prior period, benefiting from the repositioning of the brand portfolio and the successful restructuring of CRG's operating model,
which continues to be further embedded in the business. Following a strong Black Friday and Cyber Monday trading period in November,
Australia's December retail trading performance proved softer than anticipated. As a result, CRG's sales growth averaged 1.0% for the last
seven weeks of the period. Net trading space increased by 0.2% on the prior comparable period, with the online contribution to sales
broadly unchanged at 27.2%.
Higher promotional activity and deliberate initiatives to clear excess inventory resulted in a 100bps decrease in the gross profit margin
to 57.9%. Expenses were maintained in line with last year despite the higher cost-of-doing business in Australia, supported by the
successful restructure of the operating model in the prior period. Adjusted operating profit of A$14.8 million increased by 4.2%,
returning an operating profit margin of 2.6%.
OUTLOOK
While the South African macroeconomic environment is showing positive early signs of recovery, inflationary pressures in Australia and the
subsequent recent interest rate hike is likely to further weaken consumer confidence in the country, tempering any recovery in Australian
retail spend. Further, recent geopolitical events will increase the degree of uncertainty around the broader global macro outlook.
Notwithstanding this context, we have clear and compelling strategies and strengthened foundational capabilities, which are already yielding
positive outcomes. We expect this trend to continue and, as a result, remain confident in our ability to deliver an improvement in the Group's
overall financial performance for the year. Furthermore, the ongoing evaluation and refinement of our capital allocation towards returns
accretive investments will continue to improve our Group's overall value creation prospects and profile.
Any reference to future financial performance included in this announcement has not been reviewed or reported on by the Group's external
auditors and does not constitute an earnings forecast.
C Thomson R Bagattini
Chairman Group Chief Executive Officer
Cape Town
3 March 2026
DIVIDEND DECLARATION
Notice is hereby given that the Board of Directors of WHL ('Board') has declared an interim gross cash dividend per ordinary share
('dividend') of 118.0 cents (94.4 cents net of dividend withholding tax) for the period ended 28 December 2025, being a 10.3% increase on
the prior period's interim dividend of 107.0 cents, based on a payout ratio of 70% of headline earnings.
The dividend has been declared from reserves and therefore does not constitute a distribution of 'contributed tax capital' as defined in
the Income Tax Act, 58 of 1962. A dividend withholding tax of 20% will be applicable to all shareholders who are not exempt.
The issued share capital at the declaration date is 981 773 961 ordinary shares. The salient dates for the dividend will be as follows:
Last day of trade to receive a dividend Tuesday, 24 March 2026
Shares commence trading 'ex' dividend Wednesday, 25 March 2026
Record date Friday, 27 March 2026
Payment date Monday, 30 March 2026
Share certificates may not be dematerialised or rematerialised between Wednesday, 25 March 2026 and Friday, 27 March 2026, both days inclusive.
Ordinary shareholders who hold dematerialised shares will have their accounts at their CSDP or broker credited or updated on Monday, 30 March 2026.
Where applicable, dividends in respect of certificated shares will be transferred electronically to shareholders' bank accounts on the payment date.
Where the transfer secretaries do not have the banking details of any certificated shareholders, the cash dividend will be held in trust by the
transfer secretaries pending receipt of the relevant certificated shareholder's banking details after which the cash dividend will be paid via
electronic transfer into the personal bank account of the certificated shareholder.
BOARD COMMITTEE CHANGE
In line with the Board's succession planning approach, Itumeleng Kgaboesele has been appointed Chairman of the Remuneration and
Talent Management Committee (the "Committee"), effective 1 May 2026. Clive Thomson will step down as interim Committee Chairman,
but will remain a member of the Committee.
CA Reddiar
Group Company Secretary
Cape Town
3 March 2026
ABOUT THIS ANNOUNCEMENT
Statement and availability
The Unaudited Condensed Interim Group Results were approved by the Board on 3 March 2026, and are available for review by
accessing the following links:
https://senspdf.jse.co.za/documents/2026/JSE/ISSE/WHLE/WHLFY26.pdf
https://www.woolworthsholdings.co.za/wp-content/uploads/2026/03/whlfy26.pdf
This short-form announcement, and the results contained therein, been prepared in compliance with the JSE Limited Listings Requirements.
This short-form announcement, including the constant currency and pro forma financial information, is the responsibility of the directors.
As it does not provide all the details of the Unaudited Condensed Interim Group Results, any investment decisions by investors and/or
shareholders and/or bondholders should be based on consideration of the full announcement.
The Analyst Presentation will be available on the website later today at the link:
https://www.woolworthsholdings.co.za/wp-content/uploads/2026/03/Analyst_Presentation.pdf
DIRECTORATE AND STATUTORY INFORMATION
NON-EXECUTIVE DIRECTORS
Clive Thomson (Chairman)
Lwazi Bam
Christopher Colfer (Canadian)
Rob Collins (British)
Belinda Earl (British)
Nolulamo Gwagwa
Itumeleng Kgaboesele
Thembisa Skweyiya
EXECUTIVE DIRECTORS
Roy Bagattini (Group Chief Executive Officer)
Zaid Manjra (Group Finance Director)
Sam Ngumeni (Chief Executive Officer: Woolworths Food)
GROUP COMPANY SECRETARY
Chantel Reddiar
DEBT OFFICER
Ian Thompson
REGISTRATION NUMBER
1929/001986/06
LEI
37890095421E07184E97
SHARE CODE
WHL
SHARE ISIN
ZAE000063863
BOND COMPANY CODE
WHLI
REGISTERED ADDRESS
Woolworths House
93 Longmarket Street
Cape Town, 8001, South Africa
PO Box 680, Cape Town 8000, South Africa
TAX NUMBER
9300/149/71/4
JSE EQUITY AND DEBT SPONSOR
Investec Bank Limited
TRANSFER SECRETARIES
Computershare Investor Services Proprietary Limited
4 March 2026
Date: 04-03-2026 07:05:00
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