Coles FY26 Sales Up 2.8%, Total Dividends Up 13% to 78c

Coles Group Limited (ASX:COL) reported group sales revenue of $45,580 million for the 52 weeks to 28 June 2026, an increase of 2.8 per cent. Group EBIT excluding significant items rose 9.9 per cent to $2,322 million and net profit after tax excluding significant items rose 13.7 per cent to $1,255 million. Profit including significant items was $1,090 million, up 1.0 per cent, after significant items of $235 million ($165 million after tax) recorded as a result of the Federal Court judgment received in September 2025 in relation to the Fair Work Ombudsman's proceedings. Supermarkets sales revenue increased 3.7 per cent to $41,472 million, or 5.1 per cent excluding tobacco, with segment EBIT up 12.2 per cent to $2,365 million and EBIT margin expanding 43 basis points to 5.7 per cent. Supermarkets eCommerce sales, which Coles footnotes as including liquor sold through coles.com.au, grew 26.4 per cent to $5.6 billion, taking penetration to 13.6 per cent for the year. Liquor sales revenue declined 3.3 per cent to $3,547 million and segment EBIT fell 47.8 per cent to $59 million, a financial result Coles said was below its expectations. The Board declared a fully franked final dividend of 37 cents per share, increasing total declared dividends for the year by 13.0 per cent to 78 cents per share.

Net cash flow from operating activities before interest and tax was $4,279 million, a cash realisation ratio of 101 per cent struck on EBITDA excluding significant items and excluding the $235 million provision, which Coles says would have been 107 per cent inclusive of the provision. The lease-adjusted leverage ratio was 2.3 times at year end. Coles set out the next phase of its investment program, including the $880 million Victorian ambient automated distribution centre, which it said remains on time and on budget with development and commissioning expected to be completed by FY30; approximately 45 new supermarkets and about 150 renewals over the next two years, supported by additional investment of $300 million by the end of FY28; and an expanded partnership with Accenture to establish the Coles Capability Centre, with benefits expected to commence in FY27 and increase to an annualised run rate of more than $100 million by the end of FY29, a figure the company footnotes as a cash benefit inclusive of annual EBIT and capital expenditure savings. Total capital expenditure in FY27 is expected to be approximately $1.55 billion, with a further approximately $190 million to establish the Capability Centre. On current trading, Coles said sales growth for the first eight weeks of FY27 was consistent with the fourth quarter of FY26: momentum in the first few weeks was well ahead of that quarter, moderated temporarily during a competitor's collectibles campaign in late July and early August, then recovered quickly once the campaign ended, with eCommerce penetration increasing to 15.7 per cent over the period. It said the Liquor sales trajectory strengthened across the first eight weeks relative to the fourth quarter. Managing Director and Chief Executive Officer Leah Weckert said the performance was achieved against continued cost-of-living pressures, geopolitical uncertainty and greater regulatory complexity.