Coles Group (COL) investor relations material

Executive summary

• Group sales revenue rose 2.5% year-over-year to AUD 23.6 billion, with supermarkets EBIT up 14.6% and e-commerce revenue up 27%, while the liquor segment faced a 3.2% sales decline and EBIT was impacted by one-off costs and increased competition.

• Customer satisfaction improved across all key metrics, supported by investments in fresh transformation, supply chain, and store renewals, and over 500 new exclusive products were launched.

• Automation and cost-saving initiatives, including the Simplify and Save to Invest (SSI) program, delivered AUD 133 million in savings, supporting reinvestment in customer value and operational efficiency.

• Statutory EBIT fell 7.9% and statutory net profit dropped 11.3% due to a $235 million provision related to a Fair Work Ombudsman judgment.

• Interim dividend of AUD 0.41 per share declared, fully franked, with a Dividend Reinvestment Plan available.

Financial highlights

• Group EBITDA increased 7.8% to AUD 2.2 billion; Group EBIT up 10.2% to AUD 1.2 billion; NPAT (excluding significant items) up 12.5%.

• Supermarkets sales revenue up 3.6% (6.1% excluding tobacco and industrial action); EBIT up 14.6% with 55 bps EBIT margin expansion.

• Liquor sales revenue down 3.2%; EBIT down 37.3% to AUD 42 million, impacted by one-off costs.

• Interim dividend of AUD 0.41 per share, fully franked; net tangible assets per share rose to AUD 1.24.

• Cash flow from operating activities was AUD 1,008 million, up from AUD 850 million in the prior period.

Outlook and guidance

• First seven weeks of Q3: supermarket revenue up 3.7% (5.3% excluding tobacco), above-market growth and retention of customers gained during prior disruptions.

• Liquor sales decline moderated to (2.5%) in early Q3, with continued positive growth in the convenience portfolio.

• Capital expenditure guidance for FY remains at approximately AUD 1.2 billion, with continued investment in renewals, digital, and growth initiatives.

• The business expects continued benefits from automation and operational efficiency, but faces ongoing legal and regulatory uncertainties.