Staff Writer
Woolworths Holdings Limited reported turnover and concession sales growth of 5.4% for the 26 weeks ended 28 December 2025. The growth exceeded inflation and reflected positive performance across all business segments despite tough economic conditions in South Africa and Australia.
On a constant currency basis, group turnover and concession sales increased by 6.1%. The company said consumer demand remained resilient across its portfolio.
In South Africa, Woolworths recorded above-market turnover and concession sales growth of 6.8%. The food business led performance, with turnover and concession sales rising by 7.0%, or 5.2%, on a comparable-store basis. The retailer reported steady month-on-month market share gains and positive volume growth, supported by continued investment in food quality and customer experience.
Food sales growth slowed to 5.3% in the final seven weeks of the period as price inflation eased. Average food inflation for the half-year was 4.6%. Online sales remained strong, with Woolies Dash revenue up 23%. Online sales accounted for 7.2% of South African food turnover. Net trading space increased by 4.3%. Expansion of the Midrand distribution centre continued, though higher depreciation affected short-term gross margins.
The Fashion, Beauty and Home segment posted turnover and concession sales growth of 6.2%, rising to 6.4% on a comparable-store basis. Improved product availability supported performance, with sales growth sustained through Black Friday and the festive season. Growth averaged 6.1% in the final seven weeks, pointing to market share gains and positive volumes.
Woolworths Financial Services grew its book by 1.8% year on year, increasing to 2.6% when excluding the sale of part of the legal book. Growth came from new accounts and higher credit limits. The annualised impairment rate stood at 6.4% for the six months ended December 2025.
On earnings, Woolworths said results were affected by base effects following the sale of the Bourke Street property in the prior period. Earnings per share are expected to fall by between 30% and 35% to between 159.5 cents and 171.8 cents. Headline earnings per share are forecast to rise by between 7% and 12%. Adjusted diluted headline earnings per share are expected to be between 165.7 cents and 174.2 cents.
The group confirmed that its share buyback programme, announced earlier, began in September 2025. During the period, Woolworths repurchased 6.9 million shares at an average price of R51.23 per share.
Woolworths said the trading update and constant currency information have not been audited or reviewed by its external auditor.
