The Woolworths Group Ltd (ASX; WOW) share price is in focus today as the company reported a 3.6% increase in Group sales to $71.5 billion and a 15.4% gain in net profit after tax (NPAT) before significant items, reaching $1.60 billion for FY26.

What did Woolworths Group report?

• Group sales rose 3.6% to $71.54 billion.
• EBITDA before significant items lifted 6.7% to $6.09 billion.
• EBIT before significant items increased 12.7% to $3.11 billion.
• NPAT before significant items jumped 15.4% to $1.60 billion.
• Final fully franked dividend of 52 cents per share, up 15.6% from last year.
• Group eCommerce sales rose 15.9% to $10.6 billion.

What else do investors need to know?

Woolworths’ key Australian Food business saw sales rise 4.6% and EBIT up 8.5%, with improved store execution and customer offers driving growth, particularly in the second half. E-commerce was a standout, with online food sales jumping by 18.6% and boosted by expanding On Demand delivery and new tech partnerships.

In New Zealand, sales increased by 2.5% (NZ dollars), but were dampened by weaker currency and disruption from store changes. The complementary businesses segment, including Petstock and PFD, also contributed stronger profits, with Petstock’s EBIT climbing 33.5%. BIG W returned to profit after a prior year loss, reflecting better stock management and stronger own-brand ranges.

What did Woolworths Group management say?

Woolworths Group CEO Amanda Bardwell said:

The action we have taken in F26 to deliver more value for customers, greater convenience and better execution has improved customer advocacy and sales momentum in our key Australian Food business, particularly in H2. Sales momentum together with strong productivity and cost discipline has delivered solid EBIT growth with an increased contribution from all trading segments.

Looking ahead, while we expect the challenging economic environment to continue with household budgets remaining under pressure, our strategy to deliver low prices and the best range and convenience gives us confidence we can be first choice for customers while delivering for our team and shareholders in the year ahead.

What’s next for Woolworths Group?

For the first eight weeks of FY27, Woolworths reported continued strong momentum in Australian Food, with a notable boost from the Disney Ooshies collectibles campaign. The focus is set to remain on value, technology-driven efficiency, and cost control as high wage growth and economic pressures continue.

In New Zealand and BIG W, trading conditions are expected to stay subdued. Woolworths aims to recover momentum through greater convenience, value offers, and enhanced product ranges. The Moorebank supply chain precinct is expected to deliver efficiency gains as it ramps up this year, helping offset supply chain investment costs.

Woolworths Group share price snapshot

The Woolworths share price has outperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a gain of around 16%.

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The post Woolworths Group FY26 earnings: Sales, profit and dividend all grow appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

S&P/ASX 200 Index (ASX: XJO) shares are not all created equal.

Some tend to perform better when the Aussie dollar is weaker against the US dollar and other foreign currencies. And some are prone to outperform amid a stronger Australian dollar.

Now, as you’re probably aware, the Aussie dollar is trading near a three-month high against the greenback.

On Tuesday afternoon it was worth 71.48 US cents. That’s up 7.0% since 16 January, when the exchange rate stood at just 66.81 cents.

We’ll look at which ASX 200 shares may catch tailwinds from the stronger domestic currency, and which might face headwinds, below.

But first…

What’s driving the Aussie dollar higher?

The recent strength of the Australian dollar versus US currency has been driven on several fronts.

First, global currency markets appear to have gotten the jitters, with public debt in the world’s biggest economy now topping US$40 trillion.

Then there are the efforts underway by the world’s number two economy to strengthen its own currency, which could further support the Aussie dollar and change the market dynamics for certain ASX 200 shares.

According to National Australia Bank Ltd (ASX: NAB) senior FX strategist Rodrigo Catril (quoted by The Australian Financial Review):

We shouldn’t forget that when it comes to currencies and the yuan, the Aussie has the strongest correlation to it. And the People’s Bank of China has made very clear that they want to see a stronger currency.

Catril added that the ongoing war with Iran and further increases in US public debt could see the Australian keep climbing to US 72 cents.

Now one last item of importance here. Namely, that currency moves are notoriously difficult to call, so a retrace is always possible in the weeks or months ahead.

With that said…

Which ASX 200 shares could be impacted by a stronger Aussie dollar?

Keeping in mind that a range of other factors could impact the performance of these ASX 200 shares – positively or negatively – more than any changes in the AUD exchange rate with the greenback, the first company I’d avoid buying amid a strengthening Aussie dollar is BHP Group Ltd (ASX: BHP).

Now there’s a lot to like about BHP shares, particularly the mining giant’s fast growing copper exposure.

However, most of the commodities that BHP digs up and sells are denominated in US dollars, while the company reports in Aussie dollars. So, a rising AUD could crimp BHP’s international earnings.

For similar reasons I’d avoid gold mining giant Northern Star Resources Ltd (ASX: NST) in this setting. That’s because gold is priced in US dollars, so a stronger AUD could also reduce Northern Star’s revenue and profit margins.

Turning to the first ASX 200 share that could benefit from a rising AUD we find Qantas Airways Ltd (ASX: QAN).

First a rising AUD could boost international travel demand from Aussie travellers. Second, much of Qantas’ costs – think jet fuel and aircraft parts and purchases – are priced in US dollars. So, a strong Aussie dollar could increase Qantas’ profit margins and earnings.

Which brings us to the second ASX 200 share I’d buy amid a strength Australian currency, JB Hi Fi Ltd (ASX: JBH).

That’s because JB Hi-Fi imports a lot of its merchandise, often priced in US dollars or other foreign currencies. As the Aussie dollar rises, those purchase prices will come down, supporting JB Hi-Fi’s margins and earnings.

The post 2 ASX 200 shares I’d buy and 2 I’d avoid amid a surging Aussie dollar appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The HMC Capital Ltd (ASX: HMC) share price is in focus today after the company posted operating EPS of 40.4 cents per share (pre-tax) for FY26, meeting its guidance, and reported a 22% lift in recurring funds management revenue to $165.5 million.

What did HMC Capital report?

• Operating EPS (pre-tax) of 40.4 cents per share, in line with FY26 guidance
• Underlying EPS (pre-tax) of 30.2 cents, excluding discontinued operations
• Fee-generating AUM grew 15% to $16.9 billion
• Recurring funds management revenue up 22% to $165.5 million
• FY26 dividend declared at 12.0 cents per share
• Tangible assets and undrawn debt capacity of $1.9 billion

What else do investors need to know?

During FY26, HMC Capital expanded across all major verticals. Real estate fee-generating AUM increased to $9.0 billion, bolstered by solid growth in unlisted property strategies and ongoing deployment opportunities. In private credit, fee-generating AUM rose to $2.3 billion, supported by fresh institutional mandates and strong net inflows. The digital infrastructure and energy platforms also contributed to higher management revenues and strengthened the balance sheet, with key partnerships helping to fund future growth and development.

The company’s more focused strategy, which included capital recycling and building platforms with institutional backing, has positioned it for continued expansion. Management highlights a robust pipeline and a strong balance sheet, supporting additional investment opportunities in FY27.

What did HMC Capital management say?

HMC Managing Director and Group CEO, David Di Pilla, said:

During FY26, HMC made substantial progress against our strategic priorities to simplify, scale and strengthen our operations and position the business to create long-term value for security holders.

The Group secured significant new institutional capital commitments across Private Credit and Energy, continued to grow our Real Estate platform and advanced strategic capital recycling initiatives within Digital Infrastructure. These actions have given us dry powder to continue to grow… With significant liquidity and a proven ability to attract institutional capital, we are focused on deploying capital into opportunities that can drive higher returns and long-term recurring earnings growth.

What’s next for HMC Capital?

Looking to FY27, HMC Capital is targeting at least 16% growth in underlying earnings, with guidance for underlying EPS of at least 35 cents per share. This forecast is underpinned by more than 30% expected growth in recurring funds management revenue, a 35% rise in distributions from its co-investments, and further cost efficiencies.

The board has laid down an FY27 dividend guidance of 15 cents per share, a 25% increase on FY26, supported by the company’s growth in recurring earnings and ongoing capital recycling initiatives.

HMC Capital share price snapshot

The HMC Capital share price has struggled over the past 12 months, underperforming the S&P/ASX 200 index (ASX: XJO) with a decline of almost 25%.

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The post HMC Capital share price on watch as FY26 earnings meet guidance, FY27 growth targeted appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.