Coles Group (ASX:COL): FY26 Earnings, Supermarket Operations and Retail Developments

Aditi Sarkar

22 October 2026 10:12 PM AEDT

Coles Group (ASX:COL): FY26 Earnings, Supermarket Operations and Retail Developments

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Highlights

Coles Group (ASX:COL) reported FY26 group sales revenue of AUD 45.6 billion.
FY26 group EBIT excluding significant items was AUD 2.3 billion; NPAT was AUD 1.1 billion.
Supermarkets eCommerce sales increased 26.4% during FY26.
Coles scheduled its first-quarter FY27 sales results for 30 October 2026.

Coles Group Limited operates Australian supermarkets, online grocery services and liquor retail businesses through the Coles and Liquorland brands. Its latest annual results highlighted increased online grocery activity, investment in stores and developments across its retail operations. On 22 October 2026, Coles Group (ASX:COL) closed at AUD 24.51. The FY26 results and approaching first-quarter FY27 sales report provide context for monitoring the company's trading and operating performance.

Company Business

Coles Group (ASX:COL) sells groceries, fresh food, household goods and other everyday products through its supermarket network and Coles Online. Customers can purchase products in stores, order for home delivery or collect orders from designated locations. The company also operates Liquorland stores and digital liquor channels, giving it exposure to both grocery and discretionary beverage spending.

Coles Financial Services offers products including insurance and credit cards through arrangements with financial services providers. Coles also participates in the flybuys loyalty program. Its retail activities depend on extensive distribution, supplier relationships, store operations and technology systems. The company's automated distribution centres and customer fulfilment centres are relevant to productivity, online ordering capacity and delivery costs.

Recent Development

In its FY26 reporting materials, Coles Group (ASX:COL) disclosed group sales revenue of AUD 45.6 billion and supermarkets eCommerce sales growth of 26.4%. It also reported 241 new stores and renewals across the year. These measures reflect both its physical retail footprint and the continued development of online shopping services.

During October 2026, Coles announced a seasonal own-brand range spanning Coles and Liquorland, comprising 371 exclusive Christmas food and beverage products, including 158 new additions. More than 200 products in that range were priced at AUD 10 or less. Such range decisions are relevant to merchandising, promotional activity and the composition of sales during the festive trading period.

The next formal sales milestone was scheduled for 30 October 2026, when the company planned to release its first-quarter FY27 figures. That report is expected to distinguish current trading patterns from the annual results already published.

Financial Performance and Sector Context

Coles Group (ASX:COL) reported FY26 group EBIT of AUD 2.3 billion excluding significant items, alongside net profit after tax of AUD 1.1 billion. Group revenue reached AUD 45.6 billion. These amounts describe different aspects of performance: revenue measures trading activity, EBIT captures operating earnings before interest and tax, and NPAT reflects the bottom-line result after relevant expenses and tax.

The 2026 third-quarter sales release recorded AUD 10.703 billion in group sales revenue, compared with AUD 10.379 billion in the corresponding period, an increase of 3.1%. Supermarkets generated AUD 9.781 billion, up 4.0%, while liquor revenue declined 3.9% to AUD 781 million. The distinct movements show why segment-level trading data matters when assessing overall retailer performance.

Australian grocery retailers operate amid fluctuations in food purchasing patterns, distribution expenses, wages and energy costs. For Coles Group (ASX:COL), the mix of online and in-store orders also influences fulfilment and operating expenditure. Regulatory scrutiny of supermarket practices and labour obligations creates additional compliance considerations. These factors can affect expenses independently of headline sales growth.

Risks to Consider

Coles Group (ASX:COL) faces operating exposure to supplier prices, wage costs, logistics disruption, technology expenditure and changes in household purchasing behaviour. Liquor trading may differ from grocery demand because beverage purchases are more discretionary. Growth in eCommerce increases the importance of cost-efficient order picking, delivery and collection systems.

Implementation of store, distribution and digital projects requires capital and execution discipline. Reporting also needs to be assessed with attention to significant items: in the first half of FY26, Coles recorded AUD 235 million in significant items related to a Federal Court judgment concerning employment matters. That item illustrates the financial relevance of legal and regulatory exposure.

What to Watch Next

The 30 October 2026 first-quarter FY27 sales update is a near-term reporting event for Coles Group (ASX:COL). Supermarket comparable sales, liquor performance and eCommerce growth will help describe how trading is developing after FY26. The company's annual general meeting was scheduled for 6 November 2026.

Later reporting can also clarify the relationship between store renewals, distribution efficiencies, cost pressures and earnings. Operating cash generation, capital spending and changes in the retail network are additional financial and operational measures to monitor.

Key Insights

Coles Group (ASX:COL) entered FY27 following FY26 revenue of AUD 45.6 billion, EBIT excluding significant items of AUD 2.3 billion and NPAT of AUD 1.1 billion. Its supermarkets, liquor outlets and online platforms have different demand characteristics and cost structures. Upcoming sales disclosures will provide more current evidence of trading, while future financial results can show how operational investment and expenses affect profitability.

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