Woolworths ups sales despite pressure on margins, constrained consumer spend

Woolworths Holdings has reported improved performance in its apparel businesses and continued above-market growth in its food business for the half year to 28 December 2025.

This is notwithstanding a constrained trading environment across both South Africa and Australia, said Group CEO Roy Bagattini.

The Group reported a 5.4% increase in turnover and concession sales to R42.5 billion.

Headline earnings per share (HEPS) were up 9.6% to 167.4 cents per share.

Woolworths declared an interim gross cash dividend per ordinary share of 118 cents, a 10.3% increase on the prior period's interim dividend, declared from reserves

Woolworths South Africa delivered above-market turnover and concession sales growth of 6.8% for the period, despite relatively subdued consumer confidence and spend.

Its 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.

Fashion, beauty and home (FBH) turnover and concession sales increased by 6.2% and by 6.4%.

Stephen Grootes asks Bagattini about the biggest contributors to the pressure on Woolworths' margins.

Bagattini highlights the significant in-store investment made in the consumer-facing front end, but also the money put into upgrading infrastructure

"We put about R1.7 billion into expanding our distribution centre in Midrand and that obviously plays through a little bit into a short-term drag on margins."

Commenting on the consistently good performance of Woolies' foods business, Bagattini says they remain very focused on the value proposition overall, having invested around R1 billion over the past three years into keeping prices down.

For more on Woolworths' half year performance, listen to the interview audio at the top of the article