Coles Group reported a 13.7% increase in net profit after tax to A$2.4 billion for the fiscal year ended June 30, 2026, as group sales rose 2.8% to A$45.6 billion. Excluding significant items, earnings before interest and tax climbed 9.9%, while the supermarket segment's EBIT advanced 12.2%, driven by a 3.7% sales increase and a 43-basis-point EBIT margin expansion.
The eCommerce segment delivered the strongest performance, with sales surging 26.4% to A$5.6 billion and penetration rising to 13.6% for the year. In the first eight weeks of fiscal 2027, penetration reached 15.7%, reflecting continued momentum in online grocery adoption. Gross profit margin improved by 37 basis points to 27% over the last 12 months, while operating cash flow excluding interest and tax totaled A$4.3 billion.
The liquor segment underperformed, with sales declining 3.3% and EBIT falling 47.8%. The company plans to close 30 liquor stores in fiscal 2027 as part of broader restructuring efforts. Coles maintained its dividend growth streak, lifting the full-year payout by 13% to A$0.78 per share, yielding 3.22% at a share price of A$22.90.
Capital expenditure for fiscal 2027 is forecast at A$1.55 billion, including A$300 million for a Victorian automated distribution center and A$150 million for new and renewed supermarkets. The Simplify and Save to Invest program generated A$311 million in benefits during FY2026, bringing cumulative savings since FY2024 to A$876 million. The program is on track to exceed A$1 billion in total benefits by FY2027.
Coles also outlined plans for 45 new supermarkets over two years, targeting net space growth above 2%. The Coles Capability Centre is expected to deliver more than A$100 million in annualized benefits by FY2029. Sustainability initiatives included an 82.6% reduction in Scope 1 and 2 emissions from the FY2020 baseline, while community contributions totaled A$45 million and 40.9 million meals were donated to SecondBite and Foodbank.
