Coles Group Ltd. shares advanced 2.5% to A$23.20 on Tuesday after the company reported fiscal 2026 underlying net profit after tax of A$1.26 billion, a 13.7% increase year-over-year and above analyst expectations.
Group earnings before interest and tax, excluding significant items, rose 9.9% to A$2.322 billion, while total sales revenue grew 2.8% to A$45.6 billion. The supermarket division’s EBIT margin expanded by 43 basis points to 5.7%, reflecting improved operational efficiency despite broader cost pressures.
E-commerce sales surged 26.4% to A$5.6 billion, lifting the online penetration rate to 13.6% of total revenue. The company also announced an annual dividend of 78 cents per share, a 13% increase from the prior year, signaling confidence in sustained cash generation.
The results were released one day ahead of earnings from rival Woolworths Group Ltd., underscoring heightened investor focus on Australia’s grocery sector amid shifting consumer spending patterns. Coles’ outperformance contributed to a 0.5% gain in the ASX 200 index.
