UPDATE: Woolworths has just announced disappointing earnings for the 2024/25 financial year, attributing the results to intense cost-of-living pressures, aggressive price cuts, and significant worker strikes. The company’s sales surged by 3.6 percent to $69.1 billion, yet this fell well short of market expectations, marking a challenging period for Australia’s largest supermarket chain.
During its annual general meeting on Thursday, Scott Perkins, Woolworths’ chair, expressed dissatisfaction with the latest performance, stating, “Neither your board nor the management team is satisfied.” He acknowledged that a range of external factors, including regulatory inquiries and industrial action, had distracted the company from its core business. “We took our eye off the ball at a period of quite dramatic change,” Perkins added, highlighting a significant shift in customer purchasing patterns.
The supermarket faced a severe setback with over $100 million in losses due to a 17-day strike by distribution center workers at the end of 2024. Amanda Bardwell, the newly appointed CEO, noted that ongoing cost-of-living issues continue to force Australian households to hunt for bargains, affecting their shopping habits. Woolworths reported a 2.7 percent increase in sales to $18.5 billion for Q1 of the 2025/26 financial year, but this growth lagged behind rival Coles, where sales grew by 3.9 percent to $10.5 billion.
In a heated discussion at the meeting, shareholders raised concerns regarding Woolworths’ decision to continue selling farmed salmon from Tasmania’s Macquarie Harbour. Environmentalists have criticized the fish-farming practices for threatening the endangered Maugean skate. Despite these concerns, Woolworths maintains that its salmon is “responsibly sourced.” Several shareholders expressed their discontent, with over a third voting in favor of the supermarket identifying and reporting the ecological impacts of its seafood products.
Phoebe Rountree from ethical share trading platform SIX stated, “This is a message from shareholders today, and investors will be watching them very closely to see how they respond.” Perkins defended the company’s practices, citing data from the University of Tasmania indicating that skate populations have rebounded. “However, if the evidence changes, so too will our position,” he affirmed.
With Woolworths grappling with serious challenges, the spotlight is on its management to adapt swiftly to the evolving market landscape. The company promises to refocus on customer trust and product pricing as it navigates these turbulent waters. Investors and customers alike will be keen to see how Woolworths revitalizes its strategy in the coming months.
