Coles Group (COL) Q1 2025 earnings summary

Executive summary

• Group sales revenue grew 2.9% year-over-year to AUD 10.5 billion in Q1 FY25, driven by Supermarkets growth and value campaigns, while Liquor sales were flat and Other segment revenue declined.

• Supermarkets delivered 3.5% sales growth, with comparable sales up 2.4%.

• E-commerce sales in supermarkets surged 22.4%, supported by improved customer experience, digital initiatives, and new CFCs.

• Customer cross-shopping reached record levels, with 95% of families shopping at three or more food retailers weekly, shaped by cost-of-living pressures.

• Focus remains on value, cost management, and operational execution heading into the peak Christmas period.

Financial highlights

• Supermarkets sales revenue reached AUD 9.5 billion, up 3.5% year-over-year; Liquor revenue was flat at AUD 851 million.

• Group e-commerce sales in supermarkets grew 22.4% to AUD 1.04 billion, with penetration rising to 10.8%.

• Exclusive brands and own-brand sales increased 4.5%, with strong growth in cheese, staples, and Coles Finest up 8.9%.

• Liquor comparable sales declined 4.4%, impacted by subdued discretionary spending and transition away from bulk sales.

• Other segment revenue was AUD 190 million, relating to the Product Supply Agreement with Viva Energy.

Outlook and guidance

• Early Q2 supermarket sales revenue is broadly in line with Q1, supported by continued volume growth and value investments.

• Liquor sales growth remains subdued; focus is on value proposition for the festive season.

• Capital expenditure in FY25 expected to rise to approximately AUD 1.3 billion due to a new automated distribution centre project in Victoria.

• No short-term move to deflation expected overall, though some categories are in deflation.