Episode Details

Coles, Australias second-largest supermarket chain, reported a mixed bag of results for the first half of FY2026. Sales grew by 3.6% excluding tobacco, but overall group sales only increased by 2.5% to $23.6 billion. Net profit fell by 11.3% to $511 million due to a $165 million provision for an underpayment issue. Without this, profits would have risen by 12.5% to $676 million.

Coles recently won a court battle with the competition watchdog over discount claims and is now focusing on reducing costs at the checkout. However, investors were disappointed with softer growth in the latest quarter, sending shares down by 8.4%. Despite this, Coles maintains its lead over rival Woolworths.

The cost of living pressures, including recent interest rate hikes, have dampened shopper confidence. Liquor sales dropped by 3.2% as consumers cut back on extras. Both Coles and retailer Harvey Norman plan interim dividends, with Coles at 41 cents per share and Harvey Norman at 14.5 cents.

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