Earnings call transcript: Coles posts strong FY 2026 growth as shares rise 1.15% on outlook

Coles Group reported strong FY 2026 growth, with sales increasing 2.8% to AUD 45.6 billion. EBIT rose 9.9% excluding significant items, while NPAT climbed 13.7%. The stock gained 1.15% to $22.90, positioning it near the top of its 52-week range. Coles credited stronger supermarket trading, cost savings, and a growing online business for the success.

Supermarket eCommerce sales jumped 26.4% to AUD 5.6 billion, and online sales reached 13.6% of total sales. However, Coles' liquor segment underperformed, with sales down 3.3% and EBIT falling 47.8%. The company plans further closures and simplification of the liquor business. Full-year dividends increased to AUD 0.78 per share, up 13%.

Coles anticipates investing AUD 1.55 billion in FY 2027, with focus on automation, new stores, and online capacity. CEO Leah Weckert highlighted strong execution, growing eCommerce profit, and productivity gains. CFO Charlie Elias noted earnings growth outpacing sales growth, driven by supermarkets and cost control. Analysts discussed Coles' new investment program, retail media, and July's sales recovery.