Coles H1 FY2026 slides: supermarkets surge 14.6% amid liquor woes
#Coles Group #FY2026 results #Supermarkets growth #Liquor decline #EBIT performance #Digital sales #Dividend increase #Australian retail
📌 Key Takeaways
- Coles supermarkets delivered strong 14.6% EBIT growth while liquor division struggled with 37.3% decline
- Despite positive results, shares fell 8.34% as market reacted to mixed performance
- Digital sales surged 27% with penetration reaching 13.1% of total sales
- Company declared increased interim dividend of 41 cents per share (up 10.8%)
- Liquor segment faces ongoing challenges despite strategic banner simplification
📖 Full Retelling
Coles Group Ltd (ASX:COL) presented its first half fiscal 2026 results on February 27, 2026, revealing robust performance in its supermarkets division with EBIT growing 14.6% while the liquor segment faced significant challenges with EBIT declining 37.3%, causing the company's shares to fall 8.34% despite overall group EBIT rising 10.2% to $1.23 billion AUD. The Australian retail giant's results highlighted a tale of two businesses, with supermarkets driving growth through operational efficiencies and value propositions, while liquor struggled in a subdued market with heightened competition. Financial performance demonstrated underlying strength with net profit after tax excluding significant items increasing 12.5% to $676 million, and the company declared a fully franked interim dividend of 41 cents per share, representing a 10.8% increase over the prior period. However, including significant items totaling $235 million related to a Federal Court judgment concerning Fair Work Ombudsman proceedings, reported NPAT declined 11.3% to $511 million. The supermarkets segment emerged as the clear performance leader with sales climbing 3.6% to $21.4 billion, while the liquor division faced declining sales of 3.2% to $1.9 billion. Digital transformation accelerated significantly during the period, with eCommerce sales surging 27% and penetration reaching 13.1% of total sales, as the company continued to extract value from its 'Simplify and Save to Invest' program, delivering $133 million in benefits during the first half.
🏷️ Themes
Retail performance, Digital transformation, Market competition
📚 Related People & Topics
Coles Group
Australian public company
Coles Group Limited is an Australian public company operating several retail chains. Its chief operations are primarily concerned with the sale of food and groceries through its flagship supermarket chain Coles Supermarkets, and the sale of liquor through its Coles Liquor outlets. Since its foundati...
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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Netflix declines to match Paramount Skydance bid for Warner Bros Dorsey’s Block slashes workforce 40% to embrace AI-native future, shares gain S&P 500, Nasdaq end in the red as Nvidia drags chip stocks lower Gold prices mixed as U.S.-Iran nuclear talks end after ’significant progress’ (South Africa Philippines Nigeria) Coles H1 FY2026 slides: supermarkets surge 14.6% amid liquor woes By Investing.com Company News Published 02/26/2026, 07:58 PM Coles H1 FY2026 slides: supermarkets surge 14.6% amid liquor woes 0 COL -8.92% Introduction & Market Context Coles Group Ltd (ASX:COL) presented its first half fiscal 2026 results on February 27, 2026, revealing a tale of two businesses as its supermarkets division delivered robust double-digit earnings growth while the liquor segment faced mounting pressures. Despite reporting strong overall financial performance with group EBIT rising 10.2% to $1.23 billion AUD, the market reacted negatively, sending shares down 8.34% to close at 20.34 AUD. The Australian retailer’s results highlighted the effectiveness of its automation and efficiency programs, with supermarkets EBIT growth of 14.6% significantly outpacing the 2.5% increase in group sales revenue to $23.6 billion. However, the liquor division’s 37.3% EBIT decline underscored the challenges facing that segment amid subdued market conditions and intensifying competition. Financial Performance Highlights The company’s financial performance for the first half demonstrated operational strength despite external headwinds. As shown in the following breakdown of key financial metrics: Net profit after tax excluding significant items increased 12.5% to $676 million, while the company declared a fully franked interim dividend of 41 cents per share, representing a 10.8% increase over the prior period. The dividend, with a record date of March 11, 2026, and payment date of March 30, 2026, reflects management’s confidence in the ...
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