How Is Coles Group Limited (ASX:COL) Balancing Supermarket Growth and Liquor Weakness?

Aditi Sarkar

04 November 2026 07:58 PM AEDT

How Is Coles Group Limited (ASX:COL) Balancing Supermarket Growth and Liquor Weakness?

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Highlights

FY26 group sales Revenue rose 2.8% to AUD 45,580 million.
Group EBIT excluding significant items increased 9.9% to AUD 2,322 million.
Net profit after tax excluding significant items rose 13.7% to AUD 1,255 million.
Supermarkets EBIT rose 12.2%, while Liquor sales declined 3.3%.
The FY26 fully Franked Dividend totalled 78 cents per share.

Coles Group Limited (ASX:COL) operates supermarkets, liquor stores and online grocery services across Australia. Its FY26 results showed growth in its core supermarket Business alongside weaker liquor trading. The contrast matters because supermarket sales account for most of the group’s revenue and earnings, while performance in smaller divisions can affect the overall result. The company has also been investing in online fulfilment and supply-chain automation.

FY26 Earnings and sales

For the 52 weeks ended 28 June 2026, COL reported group sales revenue of AUD 45,580 million, an increase of 2.8%. EBIT excluding significant items increased 9.9% to AUD 2,322 million. Net profit after tax excluding significant items rose 13.7% to AUD 1,255 million. On a statutory basis, net profit after tax was AUD 1,090 million, up 1.0%. These measures differ because the statutory result includes significant items. The distinction is important when comparing operational progress with the total reported profit.

Supermarkets and online operations

Supermarkets revenue rose 3.7% in FY26 to AUD 41,472 million, while segment EBIT increased 12.2% to AUD 2,365 million. The company reported a 43-basis-point improvement in its supermarket EBIT margin. Exclusive to Coles product sales increased 6.1%, reflecting the role of own-brand products in the retail mix. Supermarket eCommerce sales grew 26.4% to AUD 5.6 billion. COL is investing in distribution and fulfilment systems, although higher online volumes do not automatically translate into equivalent profit growth because picking, delivery and technology create additional costs.

Liquor performance and Capital returns

Liquor sales declined 3.3% to AUD 3,547 million, while segment EBIT fell to AUD 59 million from AUD 113 million. This divergence from the supermarket division highlights the different trading conditions across the portfolio. COL reported total FY26 dividends of 78 cents per share, fully franked, representing a 13.0% increase. Capital returns must be considered alongside the company’s Investment requirements, including store renewals and automation. The business continues to face price competition and pressure on household spending, which may influence product mix and promotional activity.

The distinction between reported outcomes and management expectations remains important. Figures for completed reporting periods describe performance already achieved, whereas targets and guidance depend on assumptions about operating conditions. Changes in costs, Demand and the timing of investment can affect results in subsequent periods. Readers should assess each measure using its stated definition and reporting period.

Key Insights

COL delivered higher FY26 supermarket earnings and increased online sales, but liquor performance remained weaker. The gap between statutory and underlying earnings is also material. Future reporting will help establish whether supermarket Margin gains persist while the company continues investing in fulfilment capacity and seeks to improve the performance of its liquor operations.

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