Coles Group (ASX:COL) Grows FY26 Profit as Supermarkets and Ecommerce Drive Performance

Aditi Sarkar

06 November 2026 10:33 PM AEDT

Coles Group (ASX:COL) Grows FY26 Profit as Supermarkets and Ecommerce Drive Performance

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Highlights

In addition, Coles Group recorded FY26 sales of $45.6 billion, up 2.8%, as its supermarkets division delivered higher operating earnings.
For the period, Group NPAT excluding significant items increased 13.7% to $1.26 billion while EBIT rose 9.9% to $2.32 billion.
During the reporting period, Supermarkets ecommerce sales rose 26.4% to $5.6 billion as online penetration increased across the retail business.
Notably, Coles increased its fully franked annual Dividend to 78 cents per share and reported $311 million in cost benefits.

Coles Group Limited (ASX:COL) is Australia's second-largest supermarket operator, running the Coles Supermarkets, Liquorland, and other retail and services businesses. The company released its FY26 full-year results on 25 August 2026 for the 52 weeks ended 28 June 2026, with CEO Leah Weckert leading the Business through another year of solid supermarket momentum.

FY26 Financial Results

Coles Group reported FY26 group sales Revenue of $45.6 billion, up 2.8% from $44.4 billion in FY25. Supermarkets sales revenue grew 3.7% to $41.5 billion, while Liquor sales declined 3.3% to $3.5 billion and other revenue fell 19.6% to $561 million. Group EBIT, excluding significant items, was $2.32 billion, up 9.9%. NPAT excluding significant items rose 13.7% to $1.26 billion. Total dividends were 78 cents per share, up 13.0% and fully franked, reflecting the strong underlying Earnings growth and cash generation.

Supermarkets Outperformance and Cost Efficiency

The Supermarkets division was the standout performer in FY26, with EBIT growing 12.2% to $2.37 billion and EBIT Margin expanding 43 basis points. Supermarkets sales growth excluding tobacco was 5.1%, reflecting strong Volume momentum as Coles continued to invest in customer value through price reduction commitments. The Simplify and Save program delivered $311 million in cost benefits during FY26, contributing materially to margin expansion. eCommerce Supermarkets sales grew 26.4% to $5.6 billion, with online penetration reaching 15.7% in the first weeks of FY27, the highest level in Coles' history.

Liquor Segment Challenges and FY27 Outlook

The Liquor segment was a drag on FY26 earnings, with EBIT falling 47.8% to $59 million due to competitive pressure, elevated cost of doing business, and ongoing Market Share challenges at Liquorland. Management outlined a strategic review of the Liquor business as part of its FY27 priorities. For FY27, Coles guided that early sales growth was consistent with the fourth quarter of FY26, maintaining momentum. The group's ongoing Investment in digital capability, automation, and the Simplify and Save efficiency program is expected to continue supporting Supermarkets margin improvement.

Stock Price Information

Shares in Coles Group Limited (ASX:COL) rose more than 2% on the FY26 results date, reflecting the strong Supermarkets result and dividend increase. As of 6 November 2026, COL shares were trading at approximately $20 on the ASX. Investors should refer to ASX announcements at www.asx.com.au and the company's Investor relations page at www.colesgroup.com.au for current pricing and disclosures.

What is Coles' Simplify and Save program?

Coles' Simplify and Save is a multi-year cost efficiency and operating model simplification program designed to reduce the cost of doing business and reinvest savings in customer value. In FY26, the program delivered $311 million in benefits, contributing to Supermarkets EBIT margin expansion of 43 basis points. The program focuses on Supply chain automation, store labour efficiency, procurement savings, and simplification of store operations and head office functions.

How has Coles' eCommerce business grown?

Coles' eCommerce Supermarkets sales grew 26.4% in FY26 to $5.6 billion, with online penetration reaching approximately 15.7% in the early weeks of FY27. This represents one of the strongest growth rates in Coles' digital history. Coles operates Click & Collect and home delivery services across its supermarket network, and has been investing in automated customer fulfilment centres to support scalable eCommerce capacity.

Why did Coles Liquor perform poorly in FY26?

Coles' Liquor segment, which includes Liquorland and other liquor retail formats, saw EBIT fall 47.8% in FY26, driven by a 3.3% decline in sales revenue, elevated cost of doing business, and competitive pressure across the Australian liquor retail market. One-off costs, including those related to a Federal Court judgment in the first half, also weighed on liquor profitability. Management has identified the Liquor segment as a strategic priority for improvement in FY27.

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