Coles Group (COL) Q3 2026 earnings summary

Executive summary

• Group sales revenue for the third quarter rose 3.1% year-over-year to $10.7 billion, driven by strong Supermarkets performance and volume-led sales revenue growth, up 4% overall and 5.7% excluding tobacco, outperforming the market.

• eCommerce sales surged by 24.8% in Supermarkets, with penetration reaching 13.6%, contributing significantly to overall growth.

• Liquor segment sales declined 3.9% year-over-year, with a notable 20% drop in big box warehouse stores and flat performance in convenience liquor stores, reflecting soft trading conditions and weaker consumer sentiment.

• Customer satisfaction and engagement improved across both Supermarkets and Liquor, especially in price satisfaction.

Financial highlights

• Supermarkets sales revenue: $9.8 billion, up 4.0% year-over-year; excluding tobacco, sales grew 5.7%.

• Liquor sales revenue: $781 million, down 3.9% year-over-year; big box liquor sales down 20%.

• eCommerce sales up 24.8% year-over-year in Supermarkets.

• Supermarkets inflation (excluding tobacco) moderated to 0.8% from 1.7% in Q2, driven by fresh produce deflation and easing packaged grocery inflation.

• Own Brand products saw renewed strength, supporting value and margin management.

Outlook and guidance

• Supermarket sales revenue growth has remained broadly in line with Q3 into Q4.

• Liquor market expected to remain challenged due to weak consumer sentiment, impacting second half earnings.

• Heightened geopolitical tensions and rising fuel and commodity prices are expected to continue influencing costs, with increased supplier price requests and operational costs.

• No material earnings impact expected in Q4 despite cost pressures, due to mitigation strategies.

• Focus remains on value, own brand portfolio, and eCommerce to support customers.