Australia’s Coles Profit Hits $1.26B as Woolworths Steps Up Rivalry
Synopsis
Coles reports a $1.26 billion underlying profit as supermarket sales rise, while Woolworths’ Ooshies campaign weighs on its new financial year.
Coles full-year profit jumped 13.7 percent to A$1.255 billion for the 52 weeks to June 28, 2026, driven by a surge in its supermarket arm. Supermarket sales revenue increased 3.7% to A$41.472 billion, with total group sales increasing 2.8 percent to A$45.580 billion.
Its statutory net profit gained 1 per cent to A$1.090 billion. The A$165 million was the cost of the underpayment of employees, which has been reported as a post-tax cost after a Federal Court ruling linked to proceedings involving the Federal Court and the Fair Work Ombudsman.
Group earnings before interest and tax (EBIT) not including significant items were also up 9.9% in Coles full profit of A$2.322 billion for the year. The final dividend on the board amounted to 37 cents per share compared to 32 cents per year, giving a total of 78 cents per share for FY26.
Sales Growth Meets Stronger Competition
Coles full-year profit was helped by a moderation in trading during the first weeks of FY27, as sales growth in the first 8 weeks was lower than the 4.7 percent forecast by analysts and equal to the same period last year in the fourth quarter of FY26.
Meanwhile, Woolworths’ sales and traffic were dampened by its Disney Ooshies promotion in late July and early August, Coles full-year profit said, noting that traffic has since resumed.
According to the ACCS Supermarkets Inquiry Final Report released in 2025, Woolworths and Coles generated 67 percent of total grocery sales at the country’s supermarkets, with the former accounting for 38 percent of total grocery sales, compared to the latter. The ACCC referred to the supermarket sector as highly concentrated in Australia.
Higher Spending Planned for FY27
In addition, Coles is set to spend A$1.55 billion in the capital on its business in FY27, up from a capital expenditure of A$1.41 billion in FY26, of which A$190 million is expected to be spent on its change program, as well as dual running and redundancy costs.
Digital sales also continue to contribute to growth in Coles, as supermarket eCommerce sales for the full year 2026 grew 26.4 percent to A$5.6 billion, with online sales accounting for 13.6 percent and 14.6 percent of total supermarket sales for the year and the fourth quarter, respectively.
Supermarkets fueled profit growth for Coles for the full year, offsetting a 3.3 percent decrease in the liquor profit line to A$3.547 billion. EBIT fell 47.8% to A$59m for the year.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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