The Coles Group Ltd (ASX: COL) share price is taking a beating today.
Shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant closed yesterday trading for $22.19. In morning trade on Friday, shares are changing hands for $20.50, down 7.6%.
For some context, the ASX 200 is just about flat at this same time.
This follows the release of Coles' half-year results, covering the 27 weeks to 4 January (H1 FY 2026).
Here's what we know.
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Coles share price tumbles on profit decline
The Coles share price is under heavy pressure today despite the supermarket reporting broadly strong growth figures.
That includes a 2.5% year-on-year increase in sales revenue to $23.6 billion.
Supermarkets sales revenue of $21.37 billion was up 3.6%, although revenue from the company's liquor division slipped 3.2% to $1.94 billion.
Online shopping showed further growth, with supermarkets eCommerce sales up 27% year on year amid increasing digital engagement.
And earnings before interest, taxes, depreciation and amortisation (EBITDA) – excluding significant items – of $2.21 billion was up 7.8% from H1 FY 2025.
On the bottom line, the supermarket reported net profit after tax (NPAT) – excluding significant items – of $676 million, up 12.5%.
But the Coles share price could be under pressure today with NPAT, including significant items, of $511 million, down 11.3% year on year.
The significant items for the six months come to $235 million, or $165 million after tax. These were recorded as a result of the September Federal Court judgment relating to Fair Work proceedings involving historical underpayment of employees.
On the passive income, management declared a fully-franked interim dividend of 41 cents per share, up 10.8% from last year's interim payout.
If you'd like to bank the interim Coles dividend, you'll need to own shares at market close on 9 March. Coles stock trades ex-dividend on 10 March. You can then expect to receive that passive income payout – representing a 2% return at current levels – on 30 March.
What did management say?
Commenting on the half-year results, Coles CEO Leah Weckert said, "We have delivered another strong set of results in a highly competitive operating environment, successfully cycling the competitor industrial action disruption in November and December 2024."
As for the second half of FY 2026, Weckert said:
As we look ahead, we are well positioned, with a strong balance sheet and cash flow generation, to continue to invest in areas that will strengthen and expand our core customer proposition and deliver value for shareholders.
As at 4 January, Coles held cash and cash equivalents of $598 million.
With today's intraday losses factored in, the Coles share price remains up 1.6% over 12 months, not including dividends.
