Australia · Delayed Price · Currency is AUD Coles Group Earnings Call Transcripts
Fiscal Year 2026
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Third quarter saw strong volume-led sales growth in supermarkets and eCommerce, while liquor sales declined, especially in big box stores. Cost pressures from fuel and suppliers are being managed, with no material Q4 earnings impact expected.
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Half-year results showed strong supermarkets earnings and margin expansion, with e-commerce up 27% and significant cost savings from automation and efficiency programs. Liquor faced headwinds, but convenience formats grew, and customer satisfaction improved across key metrics.
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First quarter saw strong supermarket sales growth, robust e-commerce expansion, and improved product availability, while liquor sales declined amid market softness. Investments in automation, store conversions, and own-brand innovation are driving operational efficiency and customer satisfaction.
Fiscal Year 2025
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Shareholders debated CEO incentives, constitutional changes, and responsible seafood sourcing, with the board emphasizing due diligence and scientific guidance. The constitutional amendment failed, blocking a vote on seafood sourcing policy. Environmental and reputational risks from Tasmanian salmon sourcing were a major focus.
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Delivered strong FY 2025 results with 3.6% sales growth, record cost savings, and robust e-commerce expansion. Outlook for FY 2026 is positive, with continued volume-driven growth, cost discipline, and no further ADC/CSC implementation costs expected.
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Group sales grew 3.4% to AUD 10.4B, with supermarkets up 3.7% and liquor up 3.4% year-over-year. ECommerce surged, and transformation projects like Simply Liquorland and CFCs drove operational gains. Competitive intensity and weather events were managed with minimal earnings impact.
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Solid half-year results driven by strong execution, value campaigns, and automation investments, with group sales up 3.7% and underlying EBITDA up 12.5%. E-commerce and loyalty programs saw robust growth, while cost control and supply chain agility offset inflationary pressures.
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Group sales rose 2.9% to AUD 10.5B, led by supermarkets and e-commerce, while liquor sales were flat. A new ADC will lift FY25 CapEx to AUD 1.3B. Cost management, value focus, and operational execution remain priorities amid high cross-shopping and competitive intensity.
Fiscal Year 2024
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The strategy focuses on food and drink leadership, digital acceleration, and operational excellence, supported by financial discipline and stakeholder relationships. Initiatives include Own Brand innovation, supply chain automation, digital growth, and store renewals, aiming for sustainable growth and enhanced customer value.
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The meeting reviewed strong financial results, increased dividends, and major investments in automation and sustainability. Shareholders raised concerns on deforestation, seafood sourcing, and ethical supply chains, with the board outlining ongoing initiatives and stakeholder engagement. Key board elections and remuneration resolutions passed.
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Strong normalized EBIT and NPAT growth, robust cash flow, and increased dividends highlight a year of strategic execution, automation, and digital expansion. Cost savings and loss reduction drove margin gains, while automation and e-commerce investments are set to deliver further benefits in FY25-26.