By category, fresh food sales grew 3.4%, driven by growth in meat, seafood, and fruit and vegetables. Long-life sales increased modestly with growth in grocery food and frozen, although this was offset by a decline in everyday needs.<\/p>\n
Woolworths NZ\u2019s earnings before interest, tax, depreciation and amortisation (ebitda) lifted 3.9% from $515m to $536m, with earnings before interest and tax (ebit) up 8.8% to $163m with an ebit margin of 1.9%.<\/p>\n
Sales and earnings before tax have lifted for Woolworths New Zealand. <\/p>\n
However, the lift in earnings came at the cost of gross margin, falling 14 basis points from 22.7% to 22.5%.<\/p>\n
Woolworths said the decline in gross margin was driven by cutting prices for loyalty card members, higher stock loss, freight costs and increased investment in its Everyday Rewards scheme during the second half.<\/p>\n
The grocer\u2019s cost of doing business fell as a result of productivity improvements, above-store cost savings, and increased investment in team hours to support the rollout of its new store operating model, falling 25 basis points to 20.6%.<\/p>\n
The company\u2019s financial statements also confirmed Woolworths NZ\u2019s plans to open two to four new supermarkets over the next three to five years.<\/p>\n
Woolworths New Zealand managing director Sally Copland said the business continues to leverage Woolworths Group’s scale and resources to make improvements. Photo \/ Woolworths NZ<\/p>\n
Woolworths NZ managing director Sally Copland said the business knows every dollar counts at the checkout.<\/p>\n
\u201cEarlier this year we reiterated our commitment to delivering value to kiwi customers whether through affordable everyday staples or absorbing costs to keep prices low,\u201d Copland said.<\/p>\n
\u201cTo deliver that real value for Kiwi families every week, and to have a sustainable business in a highly competitive environment, we also have to run an efficient business.\u201d<\/p>\n
Copland said the business made deliberate decisions to shield shoppers from rising expenses during the year, particularly during recent fuel and inflationary spikes.<\/p>\n
Woolworths NZ absorbed wholesale price increases on everyday staple cuts for red meat rather than passing them on, according to Copland.<\/p>\n
\u201cWoolworths New Zealand remains a long-term, committed overseas investor in the Aotearoa retail sector, having invested $1.5b of capital into the New Zealand market over the past five years.\u201d<\/p>\n
Outlook<\/p>\n
Looking to the first eight weeks of the 2027 financial year, NZ total sales increased 4.2% with improved momentum relative to the fourth quarter of the previous financial year. Woolworths attributed some benefit to its popular Disney Ooshies campaign.<\/p>\n
Woolworths Group chief executive Amanda Bardwell said trading conditions were expected to remain subdued.<\/p>\n
\u201cWe are focused on restoring sales momentum by delivering more value, further enhancing the range and providing greater convenience to customers to deliver an improved financial performance in 2027,\u201d Bardwell said.<\/p>\n
The wider Woolworths Group lifted total sales 3.6% from A$69b to A$71.5b, with ebit up 12.7% from $2.7b to $3.1b.<\/p>\n
Woolworths Group reported a net profit before significant items of $1.59b, up 15.4% from $1.38b in 2025, and a net profit after significant items of $1.1b, up 18.1%.<\/p>\n
The company declared a final dividend of 52c per share, up 15.6% on the prior year.<\/p>\n