Coles Group reports $45.6 billion in sales amid legal provisions

Coles Group has reported its FY26 full-year results, posting a group sales revenue of approximately $45.6 billion, a 2.8 per cent increase. Net profit rose 1 per cent to $1.09 billion, though underlying net profit excluding significant items was reported at $1.26 billion, a 13.7 per cent increase.

The results were impacted by a $235 million provision following a Federal Court decision regarding historical staff underpayments. The court found that systemic payroll failures led to the underpayment of nearly 30,000 salaried employees. Additionally, the company faced scrutiny from the ACCC regarding its ‘Down Down’ discounting campaign, which was found to have involved misleading price representations.

Performance varied across divisions. The supermarket segment saw a 3.7 per cent sales increase, driven by online grocery growth and increased market share as consumers focused on value. Conversely, the liquor division experienced a 3.3 per cent decline in sales, prompting a strategic review and potential store closures.

In response to regulatory and legal challenges, Coles' board docked CEO Leah Weckert’s annual pay by over $400,000. The company plans to invest in an accelerated store opening and renewal program to maintain growth momentum.