Coles Group (COL) H2 2025 earnings summary

Executive summary

• Achieved strong financial and operational results in FY 2025, with record cost savings and continued progress on value, quality, availability, and customer experience across Supermarkets and Liquor.

• Customer satisfaction and team member engagement reached record highs, with significant improvements in store look, feel, online experience, digital transformation, and sustainability.

• Investments in automation (ADCs, CSCs) and digital platforms drove efficiency, availability, and e-commerce growth.

• Supported communities through major fundraising and food donation initiatives, maintaining leadership in corporate giving.

Financial highlights

• Group sales revenue increased by 3.6% to $44.4 billion year-over-year (normalised); underlying EBITDA up 10.7% (reported 7.5%) and EBIT up 6.8% to $2.22 billion (normalised).

• Underlying NPAT from continuing operations (excluding significant items) increased by 3.1% to $1.2 billion.

• Delivered $327 million in Simplify and Save to Invest (SSI) benefits, supporting margin expansion.

• Operating cash flow (excl. interest and tax) was $4 billion, with a cash realisation ratio of 102%.

• Fully franked final dividend of $0.32 per share, total FY 2025 dividend $0.69 per share, up 1.5%.

Outlook and guidance

• First eight weeks of FY 2026: supermarket sales revenue up 4.9% (7% ex-tobacco), driven by volume and value investments; Liquor sales flat.

• E-commerce sales continue strong growth; ADC program to deliver first full year of annualised benefits.

• No further implementation, dual running, or transition costs for ADC/CSC in FY 2026.

• Simply Liquorland rollout to complete by Q3 FY 2026 with $20 million one-off cost.

• FY 2026 capital expenditure expected at $1.2 billion, with new store openings and renewals planned.