Woolworths Holdings has increased revenue to a record R83.5-billion in the 52 weeks to June 28 2026, but a higher tax bill and continued impairments weighed on the retailer’s bottom line, resulting in lower profits for the year.
The group reported revenue of R83.47-billion, up 4% from R80.24-billion in the previous financial year, while turnover rose to R82.84-billion from R79.54 billion. Operating profit from core trading activities improved marginally to R5.12 billion from R5.05 billion.
However, profit attributable to shareholders declined to R2.32-billion from R2.44-billion a year earlier, while earnings per share fell to 263 cents from 273.4 cents.
Food business drives revenue growth
The weaker earnings performance came despite solid growth in the group’s core South African food business, which remains the biggest contributor to revenue and profits. Woolworths Food increased revenue to R54.33-billion and generated profit before tax of R3.23-billion, although this was slightly lower than the R3.26-billion recorded in 2025.
A key drag on profitability was impairment charges across the business. The group recorded R161-million in impairments under non-core trading expenses and capital items, while total net impairment losses on property, plant and equipment, intangible assets and right-of-use assets amounted to R176-million during the year.
Management disclosed that a R56-million goodwill impairment was recognised in the Woolworths business due to challenging macroeconomic conditions, including geopolitical uncertainty, higher fuel prices and elevated interest rates that pressured consumer spending and reduced the recoverable value of certain assets. A further R91-million impairment was recognised against computer software assets after the retailer reassessed the expected future economic benefits from those investments.
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Tax expense increases sharply
The group’s tax expense also increased sharply to R833-million from R553-million, lifting the effective tax rate to 26.3% from 18.4% in the prior year.
The Australian-based Country Road Group remained under pressure despite signs of improvement. Revenue slipped to R12.35-billion from R12.57-billion, while the division reported a loss before tax of R361-million, an improvement from the R1.89-billion loss reported in 2025.
The retailer’s South African fashion, beauty and home segment saw profit before tax almost halve to R653-million from R1.2-billion, reflecting ongoing pressure in discretionary retail spending.
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Despite softer earnings, Woolworths generated strong cash flows. Cash generated from operations increased to R6.86-billion from R4.69 billion, while net cash inflow from operating activities nearly doubled to R5.29 billion.
The group closed the year with total assets of R39.43-billion and shareholder equity of R10.24-billion. It also returned capital to investors through dividends and share buy-backs. During the year, Woolworths repurchased and cancelled 9.7 million shares at a cost of R500-million.
The board declared a final dividend of 81 cents per share, unchanged from the previous year, bringing the total dividend for the year to 199 cents per share, up from 188 cents in 2025.
Woolworths said the proposed acquisition of in2food remains subject to competition authority approval and had not yet been completed by year-end. The retailer indicated that once the necessary approvals are obtained, the transaction will be accounted for under IFRS business combination rules.
Read the annual report: https://www.woolworthsholdings.co.za/wp-content/uploads/2026/09/whlfy26.pdf
- Woolworths Holdings reported a 4% increase in revenue to R83.5 billion for the 52 weeks ending June 28, 2026, with turnover rising to R82.84 billion.
- Profit attributable to shareholders fell to R2.32 billion from R2.44 billion, and earnings per share decreased to 263 cents from 273.4 cents.
- The South African food business revenue grew to R54.33 billion, generating a profit before tax of R3.23 billion, slightly down from R3.26 billion the previous year.
- Impairments totaled R337 million, including a R56 million goodwill impairment in Woolworths and a R91 million impairment on computer software assets.
- The group's tax expense rose sharply to R833 million, increasing the effective tax rate to 26.3% from 18.4% in the prior year.
