Woolworths has reported disappointing earnings for the 2024/25 financial year, attributing the decline to a combination of cost-of-living pressures, price cuts, and industrial action. The supermarket chain recorded sales growth of 3.6 per cent, reaching $69.1 billion, yet this figure fell short of expectations. Scott Perkins, chair of Woolworths, communicated these results during the company’s annual general meeting, where he emphasized the board’s dissatisfaction with the performance.
Perkins indicated that the company faced numerous external challenges, which distracted teams from their primary objectives. He noted the impact of regulatory inquiries and a CEO succession plan that had diverted focus. “I want to make it very clear to all shareholders that neither your board nor the management team is satisfied with recent performance,” Perkins stated.
Amidst these challenges, Woolworths has had to adapt to intensified competition, particularly as its chief rival, Coles, reported stronger sales growth of 3.9 per cent, achieving $10.5 billion in the same period. The impact of a significant 17-day strike at distribution centers also contributed to Woolworths’ struggles, which incurred losses exceeding $100 million.
Amanda Bardwell, in her first meeting as chief executive, acknowledged the ongoing cost-of-living pressures affecting consumer behavior. She noted that households are increasingly focused on finding bargains, which plays a role in shifting purchasing patterns. Woolworths managed to achieve a 2.7 per cent increase in sales for the first quarter of the 2025/26 financial year, totaling $18.5 billion, but this growth lagged behind Coles.
Bardwell expressed her disappointment regarding the company’s performance, stating, “We want to be the first choice for customers for the freshest Australian food.” This sentiment resonated with shareholders, many of whom raised concerns about the company’s practices regarding farmed salmon.
The issue of salmon farming was highlighted again at the meeting, particularly regarding Woolworths’ decision to continue sourcing from Tasmania’s Macquarie Harbour. Critics pointed out that fish-farming practices in the area threaten the endangered Maugean skate, which resides exclusively in this habitat. Shareholders criticized Woolworths for labeling its salmon products as “responsibly sourced,” especially since Coles had removed similar descriptions from their packaging.
In a significant move, more than a third of shareholders voted in favor of Woolworths committing to identify and report the impacts of farmed seafood it sells. Additionally, 14 per cent supported a motion for the company to align its practices with global best standards. Phoebe Rountree from the ethical share trading platform SIX commented on the vote, highlighting that it sends a strong message regarding shareholder expectations. “Investors will be watching them very closely to see how they respond to this vote,” Rountree noted.
In response to the criticism, Perkins pointed to information from the University of Tasmania, which suggested that skate populations had rebounded to levels not seen in a decade. “However, if the evidence changes, so too will our position,” he added, emphasizing that the company’s approach is not a crusade.
As Woolworths navigates these challenges, the path forward will require addressing both market competition and stakeholder concerns about sustainability and ethical sourcing. The coming months will be critical in determining how the supermarket giant adapts to the evolving landscape of Australian retail.
