Woolworths Holdings has signaled that its annual earnings growth will remain modest, citing a more challenging trading environment in the second half of the fiscal year compared to the first.
The retailer, which reported for the 52 weeks ending June 28, indicated that headwinds from the ongoing conflict in the Middle East and rising interest rates are hampering its recovery trajectory.
The company’s cautious outlook reflects broader pressures facing consumer-facing businesses in emerging markets.
As geopolitical tensions persist, supply chain disruptions and inflationary pressures are squeezing margins and dampening consumer spending.
This aligns with warnings from the OECD and the Food and Agriculture Organization (FAO), which have cautioned that the Middle East conflict is likely to drive up prices for agricultural commodities in the short term.
Market participants are increasingly broadening their exposure to Middle East conflict risks beyond crude oil, with significant repricing now evident in fertilizer, food, and foreign exchange markets.