Slide 1: ASX cover letter: 2024 Full Year Results Presentation
27 August 2024 The Manager Company Announcements Office Australian Securities Exchange Dear Manager Coles Group Limited – 2024 Full Year Results Presentation Please find attached for immediate release to the market the 2024 Full Year Results Presentation for Coles Group Limited. This announcement is
Slide 2: 2024 Full Year Results Presentation
2024 Full Year Results Presentation 27 August 2024 Leah Weckert, Managing Director & Chief Executive Officer Charlie Elias, Chief Financial Officer Through our partnership with Sundrop Farms and following extensive research spanning0 multiple European countries, Coles created the Grandma’s Heirloom
Slide 3: Disclaimer
Disclaimer This presentation contains summary information about Coles Group Limited (ACN 004 089 936) and its controlled entities (collectively, ‘Coles’, ‘Coles Group’ or ‘the Group’) and Coles’ activities as at the date of this presentation. It is information given in summary form only and does not
Slide 4: Acknowledgement of Traditional Custodians
Coles wishes to acknowledge the Traditional Custodians of this land We recognise their strength and resilience and pay our respects to their Elders past and present. Coles extends that respect to all Aboriginal and Torres Strait Iskander people, and recognises their rich cultures and their continuin
Slide 5: FY24 highlights
FY24 highlights Significant progress across all strategic pillars Value proposition and loyalty offers resonating Strong eCommerce sales growth Costs managed, favourable loss trajectory and improvements in availability ADC and CFC programs reached key milestones Strategic investments further strengt
Slide 6: FY24 financial highlights
FY24 financial highlights Reported Group EBIT Reported NPAT Operating cash flow continuing operations continuing operations $2,057m $1,128m $3,589m +5.7% normalised1 vs. pcp +2.1% normalised1 vs. pcp 98% cash realisation Underlying Group EBIT2 Underlying NPAT2,3 Total dividend4 continuing operations
Slide 7: Successful execution of immediate strategic priorities
Successful execution of immediate strategic priorities Our vision is to become the most Availability, loss and quality Delivering value trusted retailer in Australia and grow ✓ ‘Great Value, Hands Down’ campaigns, every ✓ Improved availability with DIF of 96% (89% in FY23) long-term shareholder valu
Slide 8: Value proposition resonating with customers
Destination for food and drink Value proposition resonating with customers ‘Great Value, Hands Down’ Launched Unlocking more value Helping all Australians seasonal campaigns, Coles Simply and and rewarding our come together for every day low prices expanded Coles Finest, customers through moments th
Slide 9: Increased focus on freshness, quality and convenience
Destination for food and drink Increased focus on freshness, quality and convenience Freshness and Quality Convenience Improved quality controls, faster fresher flows, Expanded convenience offerings aimed at saving increased local sourcing and launched ‘Great time, providing inspiration and budget f
Slide 10: Exclusive brand innovation
Destination for food and drink Exclusive brand innovation Exclusive to Coles Coles Finest sales revenue grew 20%1, >1,100 new Exclusive to Coles products, sales grew 6.6%1 Coles Simply achieved 66% brand awareness2 with growth across all price tiers >2x Coles Own Brand received 69 awards 538 Exclusi
Slide 11: Digital adoption increasing rapidly
Accelerated by digital Digital adoption increasing rapidly Digitally-powered growth Integrated loyalty Driving sustained value through our investments in digital Supermarkets Liquor +30.1% 9.4% +42.6% +9.2% 6.2% Normalised1 eCommerce Monthly active Normalised1 eCommerce eCommerce sales penetration a
Slide 12: Strong growth in Coles 360
Accelerated by digital Strong growth in Coles 360 +20.5% increase in Coles 360 media income 1 Strong advertiser demand across all digital offerings – in-store, Coles Online and offsite channels Launched Coles 360Impact, a measurement tool providing detailed insights into campaign performance for sup
Slide 13: Differentiation via CFCs
Accelerated by digital Differentiation via CFCs Coles’ eComm proposition – Anywhere, Anytime, Anyhow Transition and ramp up Home Delivery Click & Collect Immediacy ▪ NSW and VIC CFCs commenced operations in July 2024 ▪ Metropolitan Sydney and Melbourne next day home delivery orders Our new CFCs are
Slide 14: Operating initiatives delivering results
Delivered consistently for the future Operating initiatives delivering results Simplify and Save to Invest Loss Availability • Delivered $238 million in benefits • Total loss improved 44 bps in 2H241 • DIF +7pp and DIFOT +10pp vs • Skip Scan technology in 546 stores, FY23 • Driven by an extensive ra
Slide 15: ADC program tracking to plan
Delivered consistently for the future ADC program tracking to plan Redbank ADC (QLD) now servicing 219 stores with ramp up completed in December. QLD supply chain costs have reduced in line with business case and availability across QLD and northern NSW stores has improved Kemps Creek ADC (NSW) rece
Slide 16: Positive progress against key sustainability targets
Delivered consistently for the future Positive progress against key sustainability targets Energy and emissions Packaging Waste Sourcing and farming • Combined Scope 1 and • 87.4% of Coles Own Brand • Diverted 86.7% of the • >97.5% of fresh produce, Scope 2 emissions reduction and Coles Liquor Own G
Slide 17: Committed to supporting our team members, community and suppliers
Win together Committed to supporting our team members, community and suppliers Team Community Suppliers • 8.8% reduction in TRIFR (vs FY23) • $38.5 million in community support3 • $34.7 billion supplier spend for products and services • Highest ever mysay engagement • Donated equivalent of ~40 milli
Slide 18: Investing in technology to enable rapid roll out of new capabilities
Foundations Investing in technology to enable rapid roll out of new capabilities Delivered a new cloud data platform, with 90% of data available in our Cloud Data Domains Enhanced our master data management system Partnered with a leading global AI provider to drive operational improvements, includi
Slide 19: Strategic investments focused on our core
Portfolio investments Strategic investments focused on our core Supermarkets and supply chain Liquor • Acquisition of two state-of-the-art milk processing facilities • Acquisition of 20 liquor stores across Tasmania • Improves security of milk supply and provides scope for • Significantly expands Li
Slide 20: Group financial overview
18 Group financial overview Coles, with the support of its customers, pork farmers and suppliers, achieved a new fundraising18 record for FightMND with more than $9.3 million raised for Big Freeze 10.
Slide 21: FY24 results – Group
FY24 results – Group FY24 FY23 Change $m Change (53 weeks) (52 weeks) normalised1 Group - continuing operations Sales revenue 43,571 40,483 7.6% 5.7% EBITDA - reported 3,659 3,382 8.2% 5.0% - underlying2 3,768 3,465 8.7% 5.6% EBIT - reported 2,057 1,859 10.7% 5.7% - underlying2 2,175 1,942 12.0% 7.3
Slide 22: FY24 results – Supermarkets and Liquor
FY24 results – Supermarkets and Liquor Supermarkets Liquor FY24 FY23 Change FY24 FY23 Change $m (53 weeks) (52 weeks) Change normalised1 $m (53 weeks) (52 weeks) Change normalised1 Sales revenue 39,042 36,746 6.2% 4.3% Sales revenue 3,692 3,610 2.3% 0.5% EBITDA EBITDA - reported 3,487 3,157 10.5% 7.
Slide 23: Operating cash flow
Operating cash flow Cash realisation of 98% Cash flow1 Comments $m FY24 FY23 • Cash realisation declined to 98% with the timing of year end EBIT 2,043 1,970 having an impact on working capital and cash flow conversion • Working capital movement reflects increase in inventories to Depreciation and am
Slide 24: Capital expenditure
Capital expenditure Capital expenditure breakdown Key capital expenditure initiatives $m FY24 FY23 • Store renewals across Supermarkets (50) and Liquor (97) Store renewals including 89 Black & White Liquorland renewals Store renewals 383 276 • New stores across Supermarkets (12) and Liquor (45)1 Gro
Slide 25: Balance sheet
Balance sheet Balance sheet summary Comments 30 Jun 31 Dec 25 Jun • Working capital increased by $121 million driven by an increase in $m 2024 2023 2023 inventories to support availability, as well as the impact from inflation on the cost of goods Working capital (1,385) (1,599) (1,506) • Property,
Slide 26: Funding and dividends
Funding and dividends Debt facility maturity profile ($m) Comments • Net debt (excluding lease liabilities) of $1,501 million increased by Bank facilities SLL Bank facilities AMTN $469 million with Coles having issued A$600 million medium term 300 notes (A$350 million 7 years; A$250m 10 years) with
Slide 27: Supermarkets
25 Supermarkets Supermarkets 25 Team members at the opening of Coles Local in Taringa, Queensland.
Slide 28: Supermarkets – key metrics
Supermarkets – key metrics1 Total sales revenue eCommerce sales growth2 Reported EBIT Underlying EBIT3 $39.0bn 30.1% $2,018m $2,125m 14.3% vs. pcp 15.0% vs. pcp 6.2% vs. pcp normalised vs. pcp 9.6% normalised 10.5% normalised 4.3% normalised Exclusive to Coles Exclusive to Coles Reported EBIT Underl
Slide 29: Supermarkets – FY24 results
Supermarkets – FY24 results Strong performance underpinned by value, availability and eCommerce growth FY24 FY23 Change $m (53 weeks) (52 weeks) Change normalised1 Key commentary Key P&L items • Sales growth driven by positive customer response to value Sales revenue 39,042 36,746 6.2% 4.3% campaign
Slide 30: Liquor
28 Liquor Liquor 28 Tinnies: the official beer of Cricket Australia and Cricket Victoria.
Slide 31: Liquor – key metrics
Liquor – key metrics1 Total sales revenue eCommerce sales growth2 Reported EBIT Underlying EBIT3 $3.7bn 9.2% $133m (15.3)% vs. pcp $144m (8.3)% vs. pcp 2.3% vs. pcp normalised vs. pcp (20.9)% normalised (13.9)% normalised 0.5% normalised Exclusive Liquor Brand Exclusive Liquor Brand Liquor store ren
Slide 32: Liquor – FY24 results
Liquor – FY24 results Growth impacted by reduced discretionary spend and operating deleverage FY24 FY23 Change $m (53 weeks) (52 weeks) Change normalised1 Key commentary Key P&L items • Sales revenue impacted by customers reducing discretionary spend Sales revenue 3,692 3,610 2.3% 0.5% due to econom
Slide 33: Outlook
31 Outlook Outlook 31 Prime Minister Anthony Albanese and Coles team members at the opening of the Kemps Creek ADC.
Slide 34: Outlook
• In the first eight weeks of FY25, sales revenue grew by 3.7%1 with positive volume growth and increasing momentum as Outlook the quarter progressed driven by value and Winter of Sports campaigns Supermarkets • Continue to see signs of customers shifting from out of home dining with our Coles Fines
Slide 35: Appendix
33 Appendix Coles is proud to support the Healthy Kicks program, designed to encourage Australian children33 to embrace healthy cooking, mindfulness and exercise.
Slide 36: FY24 results – segment financials
FY24 results – segment financials FY24 FY23 Change $m (53 weeks) (52 weeks) Change normalised Sales revenue Supermarkets 39,042 36,746 6.2% 4.3% Liquor 3,692 3,610 2.3% 0.5% Other 837 127 n/m n/m Sales revenue – continuing operations 43,571 40,483 7.6% 5.7% Express – discontinued operations - 988 n/
Slide 37: Q&A
35 Q&A Swaggle, Australia’s newest online pet retailer, was launched during the year, 35 providing pet parents with a specialty range of products.