Coles has reported a 11.3% fall in net profit after tax (NPAT) to A$511 million (US$363 million) for the first half of the 2026 financial year (H1 FY26).
However, the supermarkets and liquor group said reported NPAT excluding significant items grew 12.5% to $676 million on sales revenue which increased 2.5% to $23.618 billion in the 27 weeks to 4 January 2026.
Directors declared a fully franked interim dividend of 41 cents per share to be paid on 30 March to shareholders registered on 11 March, up 10.8% from 37 cents in H1 FY25.
“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,” CEO Leah Weckert said in an ASX announcement.
She said the momentum in the Coles business had enabled it to continue offering a compelling value proposition to customers, particularly over the festive season, while also achieving further improvements in availability and customer experience metrics.
It was clear that Coles' focus on executing against its strategic priorities and the successful delivery of its ADC (average daily customers) and CFC (comparable food costs) transformation investments were delivering benefits for customers and shareholders.
“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,” Weckert said.
The company said supermarket sales revenue increased by 3.7% (5.3% if excluding tobacco) in the first seven weeks of the third quarter as it continued to cycle the impact of competitor industrial action last year.
It expected the market to remain highly competitive and it was focussed on delivering a “seamless omnichannel experience” with the right range, quality, value and innovation to drive sales and consistently deliver more efficient and streamlined operations.
In the first seven weeks, the fall in liquor sales moderated to 2.5% as the convenience portfolio continued to deliver positive sales growth.
One-off costs of approximately $7 million were expected to be incurred in the second half as it completed the simplification of its liquor business.
RBC Capital Markets said Coles' earnings were in line with its and consensus estimates.
At the time of writing, Coles shares were trading at $1.97 (8.3%) lower at $20.22, capitalising the company at $27.14 billion.
