Key Highlights

  • Group sales Revenue increased 2.8% to $45,580 million, with Group EBIT up 9.9% to $2,322 million
  • NPAT excluding significant items rose 13.7% to $1,255 million, while statutory NPAT increased 1.0% to $1,090 million after $235 million of significant items relating to a Fair Work Ombudsman judgment
  • Supermarkets EBIT increased 12.2% with Margin expansion of 43 basis points, while Liquor EBIT declined 47.8% amid a challenging trading environment
  • The board declared a fully franked final Dividend of 37 cents per share, taking total FY26 dividends to 78 cents, up 13.0%

Coles Group Limited (ASX:COL) reported Group sales revenue of $45,580 million for the 52 weeks to 28 June 2026, an increase of 2.8% on the prior year. Group EBIT, excluding significant items, increased 9.9% to $2,322 million, which the company attributed to Supermarkets sales momentum, Operating Leverage and cost discipline translating into Earnings growth ahead of sales. NPAT excluding significant items rose 13.7% to $1,255 million, reflecting EBIT growth and stable financing costs, while statutory NPAT increased 1.0% to $1,090 million after accounting for $235 million of significant items, or $165 million after tax, recorded following a Federal Court judgment received in September 2025 relating to Fair Work Ombudsman proceedings.

Supermarkets Segment Performance

Supermarkets sales revenue increased 3.7% to $41.5 billion, up 5.1% excluding tobacco, as the division cycled the impact of competitor industrial action in the prior corresponding period and achieved Market Share growth for the year. Flybuys active members increased to 10.3 million, and customer satisfaction improved across all key measures. eCommerce sales grew 26.4% to $5.6 billion, with digital penetration reaching 13.6% for the year and 14.6% in the fourth quarter; the company's Customer Fulfilment Centres achieved positive EBITDA for the year, their second year of operation, supported by expanded catchment areas and same-day delivery. Gross margin for Supermarkets increased 37 basis points, and cost of doing Business as a percentage of sales improved 6 basis points, contributing to a 12.2% increase in EBIT and margin expansion of 43 basis points to 5.7%. The company completed 71 store renewals, opened 13 new stores and closed three, taking the network to 870 supermarkets.

Liquor Segment Decline

Liquor sales revenue declined 3.3% to $3.5 billion for the year, with the rate of decline moderating to 2.5% in the fourth quarter. The company attributed the decline to cycling prior-year benefits from a competitor's Supply chain disruption, ongoing cost of living pressures, and elevated promotional activity across the sector, particularly in the large format segment. Gross margin for Liquor increased 40 basis points, supported by sourcing and promotional optimisation initiatives, but EBITDA and EBIT declined 19.1% and 47.8% respectively, as inflationary cost pressure, Fixed Cost deleverage and $20 million of one-off costs associated with the Simply Liquorland program outweighed the margin improvement. The company said the Liquor result for FY26 was below its expectations and that it has completed a strategic review, now executing a program aimed at improving financial performance through a more integrated food and drink proposition, network optimisation and a simplified operating model.

Balance Sheet and Capital Expenditure

Net Assets were $3,946 million at 28 June 2026, an increase of $140 million on the prior year. Property, plant and equipment increased $549 million to $6,415 million, reflecting the company's Capital Expenditure program. Interest-bearing liabilities decreased $184 million to $1,800 million, following repayment of a $150 million medium-term note in August 2025. The lease-adjusted Leverage Ratio was 2.3 times at year end, with Credit ratings of BBB+ from Standard & Poor's and Baa1 from Moody's. Gross operating capital expenditure was $1,189 million, a decrease of $76 million on FY25, while net property capital expenditure increased $162 million to $217 million. Return on capital, excluding significant items, increased to 17.3%.

Dividend

The board declared a fully franked final dividend of 37 cents per share, with a Record Date of 4 September 2026 and payment date of 22 September 2026, taking total declared dividends for the year to 78 cents per share, an increase of 13.0% on the prior year.

Outlook for FY27

CEO Leah Weckert said the company enters FY27 having gained market share and improved customer satisfaction scores in Supermarkets over the past year. Sales growth in the first eight weeks of FY27 was reported as consistent with the fourth quarter of FY26, with a temporary moderation during a competitor's collectibles campaign in late July and early August before recovering. eCommerce penetration increased to 15.7% over the period. In Liquor, the sales trajectory strengthened relative to the fourth quarter of FY26, with the convenience portfolio continuing to deliver growth and the Warehouse portfolio also showing improvement.

Conclusion

Coles Group's FY26 results showed earnings growth ahead of sales, driven by market share gains, margin expansion and continued eCommerce growth in its Supermarkets division, while the Liquor segment recorded a marked decline in earnings amid competitive and cost pressures that the company has acknowledged fell below its expectations. Statutory profit growth was more modest than the underlying result due to significant items tied to the Fair Work Ombudsman judgment, and the board increased the dividend for the year even as it works through a strategic review aimed at improving Liquor's performance heading into FY27.