Coles shares soar as supermarket growth beats estimates
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More news: Coles led gains on the ASX 200 in early trade after the supermarket group's full-year earnings topped estimates, driven by strong growth in supermarkets, partly offset by a weaker performance in liquor sales.
Shares were up 6.8% to $22.14 at 11am AEST, taking 12-month returns to 19.9%.
Jarden analysts called it a "good, clean result", with one-off items and supply chain related costs already priced in by investors.
What they said: "Overall feels more optimism in tone of release, with a strong start to FY26 and signs of improving sales all supportive of operating leverage beginning to flow through the P&L," the analysts said.
"Key question now is if [Coles] is outperforming or if [Woolworths] has lifted too, with [Woolworths] to report tomorrow... our prior industry discussions suggested [Woolworths] was trading better."
Coles posts 3.5% fall in full-year profit, in line with estimates
The news: Supermarket giant Coles reported a 3.5% drop in full-year profit to $1.08 billion for the 2025 financial year.
The numbers: The result was a decline from the $1.12 billion last year, but roughly in line with the $1.08 billion expected by analysts, according to Visible Alpha.
The group saw sales revenue rise 3.6% year on year, from $43.57 billion to $44.35 billion, and above consensus estimates of $44.31 billion.
Coles will pay full-year dividends of 68 cents per share, level with last year's payout but below average forecasts of 69 cents per share.
The context: The group saw supermarket sales revenue rise 4.3% year on year, while liquor sales saw softer growth of 1.1%. Revenue from its product supply arrangement with fuel retailer Viva Energy declined due to lower tobacco sales.
Financing costs increased by $99 million to $541 million, with lease-related financing costs increasing by $62 million due to lease liabilities associated with the group's new Kemps Creek automated distribution centre and two new customer fulfilment centres.
