Coles Group reported a 14% rise in underlying net profit to A$1.26 billion for the year ended June, up from A$1.10 billion a year earlier. Group earnings before interest and tax, excluding significant items, increased 9.9% to A$2.322 billion.
Total sales revenue rose 2.8% to A$45.58 billion, with supermarket sales up 3.7% to A$41.47 billion. The supermarket segment’s EBIT margin expanded by 43 basis points to 5.7%, supported by cost discipline. E-commerce sales surged 26.4% to A$5.6 billion, lifting penetration to 15.7% of total sales.
The liquor division underperformed, with sales down 3.3% and EBIT falling 47.8% to A$59 million. Coles attributed the liquor segment’s decline to ongoing pressure and a multi-year restructuring program aimed at integrating food and drink offerings, optimizing the store network, and simplifying operations.
The company plans to invest approximately A$190 million in a new capability centre, targeting more than A$100 million in annualized benefits by FY29. Sales growth in the first eight weeks of FY27 remained broadly consistent with the fourth quarter of FY26.
