Coles Group (COL) H1 2025 earnings summary

Executive summary

• Delivered strong half-year financial and operational results, focusing on value, digital growth, and supply chain resilience, with significant progress on automation and customer engagement initiatives.

• Opened new Customer Fulfilment Centre in Truganina, Victoria, and completed transition to automated distribution and fulfillment centers.

• Continued investment in value campaigns, exclusive brands, loyalty programs, and digital innovation drove customer engagement and sales.

• Maintained leadership in community giving and advanced sustainability initiatives.

• Responded effectively to industry supply chain disruptions, generating AUD 120 million in incremental supermarket sales and AUD 20 million in EBIT.

Financial highlights

• Group sales revenue increased by 3.7% to $23,035 million, with underlying EBITDA up 12.5% to $2,137 million and underlying EBIT up 8.9% to $1,209 million.

• Underlying NPAT rose 6.4% to $666 million; interim dividend of 37.0 cents per share, up 2.8% year-over-year.

• Supermarkets sales revenue grew 4.3% to $20.6bn; underlying EBIT up 11% to $1,169m.

• Liquor sales revenue up 0.8% to $2.0bn; EBIT down 20.2% to $67m due to cost inflation and subdued market.

• Implementation costs for major projects totaled $92 million for the period.

Outlook and guidance

• Supermarkets sales revenue grew 3.4% in the first seven weeks of Q3; Liquor up 3.8%, with focus on value, fresh offer, and transformation investments.

• FY25 operating capital expenditure expected to be approximately $1.3 billion.

• Cash realisation ratio at 69% due to timing of payment run, expected to normalize to 100% for the full year.

• No material impact expected from OECD Pillar Two global minimum tax rules.

• Product Supply Arrangement with Viva Energy expected to conclude in April 2026.