Coles Group (COL) H1 2026 earnings summary

Executive summary

• Group sales revenue rose 2.5% year-over-year to $23.6 billion, with EBIT (excluding significant items) up 10.2% and NPAT (excluding significant items) up 12.5%, driven by strong Supermarkets performance and eCommerce sales up 27%.

• Supermarkets EBIT grew 14.6%, with adjusted sales revenue (ex-tobacco) up 6.1% and eCommerce penetration reaching 13.1%.

• Customer satisfaction improved across all key metrics, supported by investments in automation, digital transformation, and over 500 new exclusive products.

• Liquor segment faced subdued market conditions, with sales revenue down 3.2% and EBIT down 37.3%, but convenience formats delivered positive growth.

• Significant legal provision of $235 million related to a Federal Court judgment impacted statutory profit, which fell 11.3%.

Financial highlights

• Group EBITDA (excluding significant items) increased 7.8% to $2,205 million; EBIT margin in Supermarkets expanded by 55bps to 5.8%.

• Interim dividend declared at 41 cents per share, fully franked, with a Dividend Reinvestment Plan available.

• Cash realisation ratio was 69% (94% adjusted for payment timing), with full-year expectation of 100%.

• Net tangible assets per share rose to $1.24; weighted average drawn debt maturity 4.4 years; undrawn facilities $1.9 billion.

• Gross margin in Supermarkets increased 65bps to 27.8%; CODB rose 10bps to 22.0%.

Outlook and guidance

• Supermarkets sales revenue in the first seven weeks of Q3 increased 3.7% (5.3% ex-tobacco), with above-market growth and retention of customers gained during prior disruptions.

• Liquor sales decline moderated to -2.5% in early Q3; focus on unified brand, process simplification, and improving warehouse store performance.

• Capital expenditure guidance for FY remains at approximately $1.2 billion, with continued investment in renewals, digital, and growth initiatives.

• Market expected to remain highly competitive, with focus on value, innovation, and operational efficiency.