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Highlights
- Coles (COL) share price up nearly 15% in 2025
- Strong return on equity at 32.4% highlights efficiency
- Steady profit growth despite modest revenue increase
The Coles Group Ltd (ASX:COL) has shown notable momentum so far in 2025, with its share price rising by almost 15%. As one of the prominent players within the ASX300, Coles is a key retailer in Australia’s grocery and everyday essentials sector. Understanding the numbers behind its performance can provide insights into what to expect for the rest of the year.
Coles operates a diverse business that spans fresh food, groceries, liquor, fuel, and even financial services. Its roots trace back over a century, originating in Victoria, Australia. Although often compared to its larger rival, Coles holds a significant 28% share of the Australian grocery market, proving its strong foothold. The company also manages related brands such as Liquorland and Coles Express, enhancing its retail ecosystem.
From a financial standpoint, revenue for Coles stood at $43.7 billion in the last annual report, showing a modest compound annual growth rate (CAGR) of 3.9% over three years. While the pace of revenue growth is not rapid, the steady upward trend suggests resilience. Gross margin, a key indicator of core business profitability, remains healthy at 26.1%.
Profit growth is encouraging as well. The latest profit figure hit $1.118 billion, rising from $1.005 billion three years ago — reflecting a CAGR of 3.6%. This steady increase in profits aligns with Coles’ reputation for consistent financial performance, making it a notable name among ASX dividend stocks, known for returning value to shareholders.
Capital structure is another important area to consider. Coles carries net debt of $9.39 billion and has a debt-to-equity ratio of 278.4%. While this indicates a relatively high leverage, such a position can be manageable for companies with stable revenue streams and strong cash flows. The return on equity (ROE) — a measure of profitability relative to shareholders' funds — was an impressive 32.4% in the last fiscal year, highlighting effective use of capital.
Given its position within the S&P ASX300 index, Coles is often included in broader market discussions focused on stable, large-cap companies with dividend appeal. Despite some concerns about modest revenue growth, the combination of solid profits and efficient capital use makes Coles worth watching throughout 2025.
Coles (COL) showcases financial strength and a stable presence in the Australian retail market. Those interested in ASX dividend stocks and solid components of the S&P ASX300 may find this company’s fundamentals intriguing for further research.
