Woolworths Reports $190 Million Profit Hit Following Worker Strikes

The grocery giant saw a 21% drop in half-year net profit as industrial action disrupted supply chains and rising costs squeezed margins.

Woolworths' net profit for the six months ending January 5 fell to $739 million, a 21% decline compared to the previous year.
The profit drop was largely attributed to a 13-day warehouse shutdown caused by worker strikes in November and December, which disrupted supply chains and grocery availability.
The company reported a 14.2% decrease in earnings before interest and tax, with Australian Food earnings taking a one-off $95 million hit due to the industrial action.
Cost-of-living pressures have driven customers to seek budget alternatives and shop across multiple supermarket chains, further impacting sales and margins.
Woolworths plans to focus on providing value to customers through promotions and pricing strategies to recover from the financial impact in the coming months.