Woolworths Group (ASX:WOW) reported fiscal third-quarter sales of about AU$18.1 billion, up 4.5% from AU$17.31 billion in the year-ago period, according to a Thursday filing with the Australian bourse.
Australian food sales increased 5.9% year over year to AU$13.83 billion, while New Zealand food sales measured in the local currency ticked 1.4% higher, per the filing.
While the impact of the Middle East conflict on the company's business has so far been limited, "higher fuel costs and secondary effects are likely to have an increasing inflationary impact as we move through the calendar year," CEO Amanda Bardwell said.
Reported fiscal 2026 Australian food earnings before interest and taxes growth is still expected to be in the mid to high single-digit range but no longer at the upper end of the range, Woolworths said.
The guidance reflects incremental costs associated with direct fuel exposures as well as initiatives to support customers during a period of budgetary constraint, including a freeze on shelf prices for 300 household staples, the company disclosed in a separate Thursday statement.
The price freeze includes Woolworths-branded or exclusive products, including eggs, bread, chicken, sausages, pasta, and diapers starting from May 1 for the next three months.