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Highlights
- Coles share price jumps 4.4% to $20.56, outperforming the ASX 200.
- Sales revenue rises 3.7% to $23.04 billion, with Supermarket sales leading growth.
- Fully franked interim dividend increases 2.8% to 37 cents per share.
Coles Group Ltd (ASX:COL) shares surged 4.4% on Thursday morning to $20.56, outpacing the 0.3% lift in the broader ASX 200 Index (ASX:XJO). The rally came after the supermarket chain posted a robust set of half-year results for the period ending 31 December 2024 (H1 FY 2025).
The company reported a 3.7% increase in sales revenue, reaching $23.04 billion. Supermarkets were the key driver, with sales climbing 4.3%, while Liquor sales posted a more modest 0.8% gain.
Coles also delivered a 12.5% increase in underlying EBITDA to $2.14 billion and a 6.4% lift in net profit after tax (NPAT) to $666 million. In response to the these results, the board announced a 2.8% increase in the interim dividend, declaring a fully franked payout of 37 cents per share.
Growth Boosted by eCommerce and Network Expansion
The supermarket giant’s growth wasn’t just driven by in-store sales — eCommerce surged 22.6% in the Supermarkets segment, with Liquor online sales rising 9.2%.
Coles continued to invest in its future, completing 25 store renewals, opening 3 new stores, and closing 1 store, bringing its total network to 858 supermarkets. Additionally, the company announced an $880 million investment with Witron to build a state-of-the-art Automated Distribution Centre (ADC) in Truganina, Victoria, which is expected to enhance logistics and supply chain efficiency.
However, financing costs rose $58 million to $271 million, reflecting increased investment and market conditions.
Outlook
Looking ahead, Coles appears to be maintaining momentum. In the first 7 weeks of Q3 FY 2025, Supermarket sales revenue grew by 3.4%, while the Liquor segment saw sales increase 3.8% compared to the same period last year.
