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Investing.com-- Woolworths (ASX:WOW) reported a 19% fall in annual profit on Wednesday, as weaker earnings in its core Australian Food unit and losses at its discount chain BIG W weighed.
Net profit after tax before significant items fell to A$1.39 billion for the year ended June 29, from A$1.71 billion a year earlier, while group EBIT dropped 12.6% on a normalised basis to A$2.75 billion.
Shares in Sydney slumped as much as 16% to A$28.08 as of 02:30 GMT, reaching their lowest level since mid-March.
Group sales rose 3.6% to A$69.1 billion, supported by 17% growth in e-commerce.
Chief Executive Amanda Bardwell said the year had been “highly disrupted” by industrial action, supply chain costs and restructuring, but added customer scores improved in the second half.
“In FY26 we expect to return to profit growth following a disappointing FY25,” Bardwell said.
The company declared a fully-franked final dividend of 45 Australian cents per share, down from 57 cents last year, bringing the full-year payout to 84 cents.
New Zealand Food rebounded strongly with EBIT rising 41%. BIG W, however, swung to a A$35 million loss amid weak clothing sales, offsetting gains in Home and Play.
Woolworths said it expects mid-to-high single-digit EBIT growth in Australian Food in FY26, alongside further gains in New Zealand and a return to profitability at BIG W.