Coles Group Limited (ASX:COL) Releases 2025 Half Year Results
Financial Performance
Coles Group Limited reported group sales of $23,035 million, marking a 3.7% increase for the first half of 2025. Group underlying EBITDA from continuing operations, excluding significant items, rose by 12.5% to $2,137 million. Underlying EBIT also saw an 8.9% growth, reaching $1,209 million. Net profit after tax (NPAT) reported a decline of 2.2% to $576 million, while underlying NPAT increased by 6.4% to $666 million. The Board declared a fully franked interim dividend of 37 cents per share, a 2.8% increase.
Operational Highlights
Coles stated that value-focused campaigns and strong trade across key events contributed to a 4.3% growth in Supermarkets sales. eCommerce sales surged by 22.6% in the Supermarkets segment and 9.2% in Liquor. The company continued its investment in automated distribution centres (ADCs), with plans to build a third ADC through an agreement with Witron. Cost-saving initiatives under the Simplify and Save to Invest program delivered $157 million in benefits and improved the loss rate by 39 basis points.
Executive Comments
Chairman James Graham stated, “An unrelenting focus by our team members to deliver against our strategic priorities has seen us report Group sales revenue of $23 billion, underlying profit from continuing operations, excluding significant items, of $666 million and the Board has declared a fully franked interim dividend of 37 cents per share. It was particularly pleasing to see benefits realised from our capital investments in automation, data and technology which allowed us to respond to the spikes in demand experienced during the half, in a way that would not have been possible previously.”
CEO Leah Weckert commented, “We have had a strong focus on value, fresh quality and availability which has supported volume-led growth in Supermarkets during the half. Pleasingly, we saw improving customer experience metrics during the period, reinforcing the importance of delivering affordability and a great shopping experience whilst customers continue to face cost of living pressures. We made good progress on our Simplify and Save to Invest target, delivering $157 million in cost savings, allowing us to offset continued cost inflation and invest in our customer proposition, whilst delivering returns for the many Australians who are shareholders.”
Motley Fool contributor Matt Burgess 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 positions in and has recommended Coles Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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