Coles Group grows profit and dividend as Supermarkets shine in FY26

Coles Group reported stronger profit and a bigger dividend for FY26, driven by Supermarkets and eCommerce growth.

The Coles Group Ltd (ASX: COL) share price will be closely watched today after full-year sales revenue rose 2.8% to $45.6 billion and earnings (EBIT, excluding significant items) jumped 9.9%, led by strong Supermarkets performance.

Woman checking bottle expiry dates.

Image source: Getty Images

What did Coles Group report?

  • Group sales revenue up 2.8% to $45,580 million
  • EBIT (excluding significant items) up 9.9% to $2,322 million
  • NPAT (excluding significant items) up 13.7% to $1,255 million
  • Fully franked total dividend up 13.0% to 78 cents per share
  • Supermarkets sales revenue up 3.7%, EBIT up 12.2%
  • eCommerce Supermarkets sales grew 26.4% to $5.6 billion

What else do investors need to know?

Coles delivered strong returns from its core Supermarkets business, with EBIT margin expanding by 43 basis points and customer satisfaction scores improving. Notably, Exclusive to Coles sales grew 6.1%, and the company gained market share during the year.

Liquor sales revenue fell 3.3% as the sector faced subdued consumer sentiment and higher costs, prompting the launch of a multi-year repositioning program. The group maintained a robust balance sheet with net assets of $3.95 billion and continued to invest in store renewals, automation, and digital technology.

Coles declared a fully franked final dividend of 37 cents per share, taking dividends for the year to 78 cents — a 13% increase.

What did Coles Group management say?

Commenting on the results, Coles CEO, Leah Weckert, said:

FY26 was another year of consistently strong performance for Coles, with above-market sales and strong earnings growth accompanied by further improvements in customer NPS and team member engagement. This demonstrates the benefits of our investments in automation and eCommerce, disciplined execution and a focus on delivering clear value for customers. We are now investing in the next phase of growth, including through an accelerated store opening and renewal program, coupled with a clear strategy to improve the performance of our Liquor business which will ensure Coles can maintain its growth trajectory.

What's next for Coles Group?

Coles enters FY27 with positive momentum, especially across Supermarkets and digital operations, with sales growth tracking similarly to the final quarter of FY26. The business is ramping up investment in new stores, renewals, and technology—including accelerated eCommerce and supply chain automation.

For Liquor, a strategic repositioning is underway to improve integration with Supermarkets, optimise the store network, and simplify operations. The company will also invest in its new Victorian automated distribution centre and the Coles Capability Centre to drive operational efficiencies and support long-term growth.

Coles Group share price snapshot

Over the past 12 months, the Coles Group share price has outperformed the S&P/ASX 200 index (ASX: XJO) with a gain of around 9%. This reflects ongoing investor confidence in the business's steady performance and dividend growth.

View Original Announcement

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

More on Earnings Results

A man leans forward propped on his elbows as he holds his clasped hands to his mouth in a worried pose as he gazes at his computer screen in a home setting.
Earnings Results

5 things reporting season taught ASX investors about FY27

Five FY26 lessons that shape the year ahead.

Read more »

Two smiling colleagues looking at a tablet in a data centre.
Earnings Results

This broker is tipping 33% upside for Megaport shares

It could be time to buy the dip on Megaport shares.

Read more »

Elderly couple using laptop at home while drinking a cup of coffee.
Earnings Results

Why now is the time to buy MediBank Private shares: Expert

This stock comes with a strong yield and defensive profile.

Read more »

A gambler at a casino bets a pile of chips on one number.
Earnings Results

The Star Entertainment share price falls on FY26 earnings

The Star Entertainment Group posted a $307 million net loss for FY26, but cost cuts and stabilised revenues mark early…

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Financial Shares

Kina Securities lifts profit and dividend in half-year 2026 earnings

Kina Securities lifts 1H 2026 profit and dividend, buoyed by strong capital and digital initiatives.

Read more »

Businessman planning and analysing investment data.
Earnings Results

Kingsgate Consolidated posts record FY2026 earnings

NPAT jumps 843% and a dividend is declared on record gold and silver production.

Read more »

Woman at computer in office with a view
Earnings Results

Praemium posts FY26 revenue growth and completes platform integration

Praemium’s FY26 results show revenue growth, HNW momentum, and successful tech integration driving future opportunities.

Read more »

happy group of people
Earnings Results

Black Cat Syndicate posts record FY26 earnings and profit turnaround

Black Cat Syndicate reports record FY26 results, including a $374 million revenue surge and $86 million profit turnaround on strong…

Read more »