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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Supermarket sales rose 4.8% (7% ex-tobacco) with strong e-commerce growth of 27.9% and robust volume gains. Liquor sales declined 1.1% amid market softness, while tobacco sales stabilized after a 57% drop. Automation, range optimization, and festive launches support continued momentum.
Fiscal Year 2025
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Executive incentive grants and shareholder proposals on sustainability and governance were key topics. The board emphasized responsible sourcing, reduced salmon procurement from Macquarie Harbour, and ongoing due diligence. Environmental, reputational, and supply chain risks were discussed, with voting outcomes favoring the board's recommendations.
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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 EBIT up 8.9%. E-commerce and loyalty programs saw robust growth, while cost initiatives offset inflation. Regulatory and competitive pressures remain high.
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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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Revised summary: The meeting reviewed strong financial growth, higher dividends, and major investments in automation and sustainability. Shareholders raised concerns on deforestation, supply chain ethics, and seafood sourcing. Key governance and remuneration resolutions passed, while shareholder-proposed constitutional changes did not.
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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.