Woolworths Holdings reports 5.3% earnings growth as food business drives performance
Woolworths Food delivered strong growth and market share gains, prompting the retailer to refocus its broader lifestyle strategy around the premium grocery business.
SOUTH AFRICA – South African retailer Woolworths Holdings has reported a 5.3% increase in full-year headline earnings, supported by strong performance from its Food division despite slower sales growth and higher operating costs.
Headline earnings per share (HEPS), a key measure of profitability in South Africa, increased to 282.3 cents for the 52 weeks ended June 28, 2026, from 268.1 cents a year earlier.
Group turnover and concession sales rose 4.3% to R84.5 billion (US$5.23 billion), although growth slowed to 3.3% during the second half of the financial year. Earnings before interest, taxation, depreciation and amortisation (EBITDA) increased 2.8% to R8.9 billion.
Woolworths Food was among the group’s strongest-performing businesses, with turnover increasing 5.7%. The company also reported “continued market share gains” in South Africa’s grocery and supermarket sector.
The growth was supported by the opening of 13 new grocery stores in South Africa, taking Woolworths’ total food trading space to more than 291,000 square metres.
The group’s Home and Beauty segment recorded more modest growth, with revenue increasing 4.3% to R15.8 billion, representing a R650 million increase from the previous year.
Following the performance of Woolworths Food, the group said it would reposition its operations around the division and its premium market position.
Woolworths said it was reorienting around its market-leading premium Food business – its strongest competitive advantage and primary engine of both brand equity and value creation.
“Carefully selected adjacent categories will strengthen the customer proposition and the group’s own ecosystem,” the company said.
As part of the reset, Woolworths said its Home and Beauty categories would serve as an extension of Food into a broader lifestyle proposition.
Despite the earnings growth, Woolworths CEO Sam Ngumeni said the results did not meet the group’s ambitions.
“While our results reflect the resilience of our portfolio and the strength of Woolworths Food, it is not where we want to be,” Ngumeni said.
“We are clear on the opportunities and the actions required to unlock greater value, and we are moving decisively to improve performance across the group.”
“We have already made progress, and that stands us in good stead for the year ahead,” he added.
Woolworths said the conflict involving the United States and Iran contributed to a difficult trading environment, with higher fuel prices and inflation concerns affecting consumer spending.
“The war in the Middle East drove higher fuel prices and inflation, weighing on consumer confidence and demand while adding to operating costs,” the group said.
“The resumption of interest rate increases in both South Africa and Australia further constrained household spending, with consumers placing greater emphasis on promotions and essential purchases.”
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