Citi warns of continued inflation impact for Australia's Woolworths; lowers PT

Woolworths

30/04/2026 19:47

** Analysts at Citi say Australian retailers are grappling with higher costs driven by fuel, reflected in Woolworths' WOW.AX Australian food sales

** Australia's largest grocer warned on Thursday that Australian Food FY26 EBIT will no longer be at the upper end of its mid- to high-single-digit guidance range

** Supermarkets don't want to be seen to be profiting from rising food inflation while their customers are facing renewed cost-of-living pressures - Citi

** Brokerage lowers PT on WOW to A$34.00 per share; retains "neutral" rating

** Citi expects Woolworths to be impacted through the year, especially given the lag on contractual fuel surcharges

** In terms of price reinvestment, it is unclear whether Woolworths will shield customers from price inflation on 300 staple products beyond the initial three-month period beginning in early May - Citi

** YTD, WOW up 17.1% as of last close

(Reporting by Shivangi Lahiri in Bengaluru)

((shivangi.lahiri@thomsonreuters.com))