Coles Group (COL) H1 2025 earnings summary

Executive summary

• Group sales revenue rose 3.7% to $23,035m for the half year ended 5 January 2025, driven by Supermarkets growth of 4.3% and modest Liquor growth of 0.8%, with strong execution on strategic priorities and resilience in supply chain operations.

• Underlying EBIT from continuing operations (excluding significant items) increased by 8.9% year-over-year, reflecting strong execution and digital transformation, while reported EBIT rose 1.7% to $1,082m.

• Interim dividend declared at 37.0 cents per share, up 2.8%, fully franked, with payment date 27 March 2025.

• Automation, data, and technology investments enabled rapid response to demand spikes and improved customer experience.

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

Financial highlights

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

• Underlying NPAT increased by 6.4% to $666m; reported NPAT at $576m, down 2.2% due to significant items.

• Fully franked interim dividend of 37.0 cents per share, up 2.8% year-over-year.

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

• Financing costs increased 27.2% to $271m, reflecting higher lease and debt interest.

Outlook and guidance

• Supermarkets sales revenue grew 3.4% in the first seven weeks of Q3, with an 8.3% two-year stack; Liquor sales revenue up 3.8%.

• Focus remains on value, fresh offer, tailored ranges, and optimising transformation investments.

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

• 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.