Coles Group (COL) investor relations material

Executive summary

• Group EBIT rose 9.9% and NPAT increased 13.7% year-over-year, driven by robust supermarket performance, eCommerce growth, and disciplined cost management, excluding significant items related to legal proceedings.

• Supermarkets gained market share, improved customer satisfaction, and achieved record team member engagement.

• eCommerce sales grew 26.4% to $5.6 billion, with Customer Fulfilment Centres achieving positive EBITDA in their second year.

• Strategic investments focused on network expansion, automation, technology, and liquor business transformation.

• Accelerated store opening and renewal program, with a clear strategy to improve Liquor business performance.

Financial highlights

• Group sales revenue reached $45.6 billion, up 2.8% year-over-year.

• EBIT (excluding significant items) was $2,322 million, up 9.9%; NPAT (excluding significant items) reached $1,255 million, up 13.7%.

• Supermarkets EBIT rose 12.2% with 43bps margin expansion; sales revenue ex-tobacco up 5.1%.

• Liquor segment sales declined 3.3%, EBIT down 47.8%, gross margin up 40bps, impacted by subdued consumer sentiment and one-off costs.

• Fully franked total dividends increased 13% to 78 cents per share.

Outlook and guidance

• Entering FY27 with strong momentum; supermarket sales growth in early FY27 consistent with Q4 FY26, and eCommerce penetration rising to 15.7%.

• Liquor sales trajectory improved in early FY27, especially in the convenience portfolio; 30 store closures planned, mainly in underperforming warehouse format.

• Incremental investments planned in automation, store renewals, and technology, with FY27 capex forecast at ~$1.55 billion.

• Inflation expected to be higher in the next 12 months, with ongoing investment in price competitiveness.