Leading Australian supermarket and retail group Woolworths Group (ASX: WOW) delivered a high-quality interim result, with strong sales growth carrying through into the early weeks of calendar year 2026. Early results from the first seven weeks of trading show the company may have regained its sales leadership, building on early signs of recovery first evident in October 2025. Notably, this revenue strength was achieved without compromising margins, supported by disciplined cost management which resulted in consensus earnings being revised upward. The company’s ‘Woolworths Living’ division also performed well, driven by PetStock and a recovery in trading at Big W. Woolworths remains a core holding, underpinned by its scale, supply chain and data capabilities, while being supported by improving trading performance in its core business.
Major liquefied natural gas (LNG) exporter Woodside Energy Group (ASX: WDS) benefited from a tightening global LNG market following the suspension of operations at QatarEnergy’s Ras Laffan facility, which is the world’s largest LNG facility. Compared with Australian peers, Woodside Energy Group has greater exposure to global gas market pricing, positioning the company to benefit from higher oil and gas prices. The company also delivered a strong result during the month, with its dividend coming in ahead of expectations. Its key growth project, Scarborough, is approaching completion and remains on track and on budget. We remain constructive on the outlook for Woodside Energy Group given its earnings sensitivity to commodity prices, near term production growth, and the potential partial sale of Woodside Energy Group’s stake in the Louisiana LNG project.