Coles Group (COL) H2 2026 earnings summary

Executive summary

• Group EBIT rose 9.9% and NPAT increased 13.7% year-over-year, driven by strong supermarket performance, robust eCommerce growth, disciplined cost management, and productivity gains.

• Supermarkets gained market share, improved customer satisfaction, and achieved record team member engagement.

• eCommerce sales grew 26.4% to $5.6 billion, with Customer Fulfilment Centres achieving positive EBITDA in their second year.

• Strategic investments focused on network expansion, automation, technology, and store renewals, with targeted growth in liquor business transformation.

• Accelerated store opening and renewal program, with 13 new supermarkets and 16 new liquor stores opened.

Financial highlights

• Group sales revenue rose 2.8% year-over-year to $45.6 billion.

• Group EBIT excluding significant items increased 9.9% to $2,322 million; NPAT excluding significant items up 13.7% to $1,255 million.

• Supermarkets EBIT up 12.2% with 43bps margin expansion; sales revenue ex-tobacco up 5.1%.

• Liquor segment sales declined 3.3%, EBIT down 47.8%, gross margin up 40bps due to strategic sourcing and media income.

• Fully franked total dividends increased 13% to 78 cents per share.

Outlook and guidance

• Entering FY27 with strong momentum; supermarket sales growth in early FY27 consistent with Q4 FY26.

• eCommerce penetration increased to 15.7% in early FY27.

• Liquor sales trajectory improved in early FY27; 30 underperforming liquor stores to close in FY27.

• Incremental investments planned in automation, store renewals, and technology, with FY27 capex forecast at ~$1.55 billion.

• Inflation expected to be higher in the next 12 months, with ongoing investment in price competitiveness.