Coles Group Stock Earnings Reports

Coles Group reported a solid FY'25 with normalized group underlying EBITDA up 10.7% and EBIT up 6.8%, supported by 3.6% sales growth to $44.4bn. Key operational highlights included the full ramp-up of two automated distribution centres (ADCs) and the opening and transition of customer fulfilment centres (CFCs), which materially improved availability, online experience and fulfilment efficiency. The company delivered record cost savings of $327m from its Simplify & Save to Invest program, offsetting inflation and enabling reinvestment in value and customer experience. Supermarkets performed strongly (sales +4.3%; underlying EBIT margin +21bp), with Own Brand growth and expansion of everyday low price lines; Liquor had modest sales growth (1.1%) with early positive results from the Simply Liquorland conversions. E-commerce was a standout, with supermarket online revenue +24.4% and CFC-fulfilled sales growing faster than overall online. Underlying NPAT rose 3.1% to $1.2bn and the Board declared a fully franked final dividend of $0.32 (FY'25 total $0.69; payout 80-90% target). FY'26 outlook: strong start (first 8 weeks supermarket sales +4.9% or +7% ex-tobacco), ADCs expected to deliver first full-year benefits, CFC earnings to improve as volumes ramp, no further ADC/CFC implementation/dual-running costs to be incurred, Simply Liquorland completion targeted by Q3 FY'26 with ~$20m one-off costs, and FY'26 capex guidance ~A$1.2bn. Balance sheet remains strong (BBB+/Baa1), net cash conversion ~102%, and management retains focus on competitiveness, cost discipline, unlocking ADC/CFC benefits and growth opportunities in Coles 360 retail media.