Coles Group (COL) H2 2025 earnings summary

Executive summary

• Achieved strong financial and operational results in FY25, with record cost savings, robust e-commerce expansion, and continued progress on value, quality, and customer experience across Supermarkets and Liquor.

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

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

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

• Major transformation projects, including new ADCs and CFCs, were completed and are delivering operational benefits.

Financial highlights

• Group sales revenue increased by 3.6% (normalised) to $44.4 billion, with underlying EBITDA up 10.7% and EBIT up 6.8% (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%.

• Financing costs increased by $99 million to $541 million, reflecting new facilities and higher interest rates.

Outlook and guidance

• Early FY26: Supermarkets sales revenue up 4.9% (7.0% ex-tobacco); Liquor sales flat; e-commerce sales remain strong.

• ADC program to deliver first full year of annualised benefits in FY26; no further implementation, dual running, or transition costs expected.

• 'Simply Liquorland' rollout to complete by Q3 FY26 with ~$20 million in one-off costs.

• FY26 capital expenditure expected at ~$1.2 billion, focused on renewals, digital, and growth initiatives.

• Focus on value, efficiency, and customer experience, with continued digital and store investments.