Slide 1: Coles Group Limited – 2025 Half Year Results Presentation
27 February 2025 The Manager Company Announcements Office Australian Securities Exchange Dear Sir or Madam Coles Group Limited – 2025 Half Year Results Presentation Please find attached for immediate release to the market the 2025 Half Year Results Presentation for Coles Group Limited. This announce
Slide 2: 2025 Half Year Results Presentation
2025 Half Year Results Presentation 27 February 2025 Leah Weckert, Managing Director & Chief Executive Officer Charlie Elias, Chief Financial Officer SecondBite co-founder Simone Carson with Coles team members at the launch of the 2024 0 SecondBite Christmas Appeal to help feed Australians who are e
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: 1H25 highlights
1H25 highlights Focus on execution and delivery of strategic priorities Value campaigns and strong trade across key events Responded at pace to industry supply chain disruption Strong eCommerce sales growth Focus on costs continues to deliver results ADCs and CFCs successfully supported periods of p
Slide 5: 1H25 financial highlights
1H25 financial highlights Group EBITDA ($m) Group EBIT ($m) NPAT ($m) 2,137 2,045 1,209 +12.5% +10.3% +8.9% 1,900 666 1,117 1,110 1,854 +6.4% 626 1,064 +5.0% 589 576 (2.2%) 1H24 1H25 1H24 1H25 1H24 1H25 Reported 1H24 1H25 Underlying 1H24 1H25 Reported 1H24 1H25 Underlying Reported Underlying1 1 1,3
Slide 6: Successful execution of strategic priorities in first half
Successful execution of strategic priorities in first half ✓ Continued investment in value, quality and innovation Destination ✓ Increasing use of data to optimise range and space with store specific ranging landing for food and in an additional 14 categories in 1H25 drink ✓ Increased Flybuys active
Slide 7: Continuing to invest in our customer offer
Destination for food and drink Continuing to invest in our customer offer Value Loyalty Fresh and Innovation • ‘Great Value, Hands Down’ value • Increased Flybuys active members by • Improvements in fresh produce and meat campaigns and >4,200 products on every 4.1% to 9.7 million quality customer me
Slide 8: Increasing use of data to optimise range and space
Destination for food and drink Increasing use of data to optimise range and space Designed to make shopping easier and provide more of the products customers are looking for • Improving choice in the areas that matter most • More tailored ranges to meet local customer preferences • Reducing product
Slide 9: Digital penetration increasing with growth across all shopping missions
Accelerated by digital Digital penetration increasing with growth across all shopping missions Supermarkets eCommerce penetration1 +22.6% +9.2% Supermarkets Liquor eCommerce eCommerce growth1 growth1 10.7% Dynamic delivery 9.1% 9.6% windows for the customer +55% +21% +35.4% 7.6% Monthly active Growt
Slide 10: CFCs fully transitioned, delivering significant uplift in perfect order rate
Accelerated by digital CFCs fully transitioned, delivering significant uplift in perfect order rate >2x >99% Perfect order rate vs Fulfilment rate in-store fulfilment1 Increased flexibility 25%+ Demonstrated ability to ramp Range increase vs volumes for rapid increases in average store range demand
Slide 11: Improvements in efficiency and loss continue to deliver results
Delivered consistently for the future Improvements in efficiency and loss continue to deliver results Simplify and Save to Invest (SSI) program Further improvement in total loss2 • Initiatives include front end service transformation, • 39 bps improvement vs. pcp process improvements in store includ
Slide 12: Resilience and flexibility of supply chain and store operations proven during period of industry disruption
Delivered consistently for the future Resilience and flexibility of supply chain and store operations proven during period of industry disruption Rapid response leveraging recent investments across automation, data and technology Delivered in full, on time Delivered incremental 1 2H22 1H23 2H23 1H24
Slide 13: Committed to supporting our team members, suppliers, communities and the environment
Committed to supporting our team members, suppliers, communities and the environment Team members Suppliers Communities Environment Improved team member engagement Awarded MAP WA Coles’ Meat, Deli and #1 corporate giver in Australia as a Submitted a Forest, Land and Agriculture (mysay engagement sco
Slide 14: Group financial overview
Group financial overview Coles’ first electric prime mover truck, delivering groceries to hundreds of stores across Victoria, saving 12 more than 65 tonnes of CO2 emissions per year compared to a regular diesel-powered prime mover.
Slide 15: 1H25 results – Group
1H25 results – Group $m 1H25 1H24 Change Continuing operations Sales revenue 23,035 22,216 3.7% EBITDA - reported (excl. SI1) 2,045 1,854 10.3% - underlying (excl. SI1)2 2,137 1,900 12.5% EBIT - reported (excl. SI1) 1,117 1,064 5.0% - underlying (excl. SI1)2 1,209 1,110 8.9% Financing costs (271) (2
Slide 16: 1H25 results – Supermarkets and Liquor
1H25 results – Supermarkets and Liquor Supermarkets $m 1H25 1H24 Change • Sales growth supported by continued investments in value and successful delivery of Sales revenue 20,629 19,778 4.3% seasonal and trade events EBITDA • eCommerce continued to perform strongly with sales growth of 22.6% while o
Slide 17: Operating cash flow
Operating cash flow Cash flow1 Comments $m 1H25 1H242 With the half year ending on 5 January 2025, an additional EBIT 1,117 1,057 payment run occurred in the final week of 1H25 compared to 1H24 resulting in an additional cash outflow of ~$520 million Depreciation and amortisation 928 790 This has im
Slide 18: Capital expenditure
Capital expenditure Capital expenditure breakdown Key capital expenditure initiatives $m 1H25 1H24 Store renewals • Store renewals across Supermarkets (25) and Liquor (671) Store renewals 167 182 • New stores across Supermarkets (3) and Liquor (6) Growth initiatives • Continued investment in automat
Slide 19: Balance sheet
Balance sheet Balance sheet summary Comments 5 Jan 30 Jun 31 Dec $m 2025 2024 2023 Working capital increased by $634 million compared to 30 June 2024, largely driven by: Working capital (751) (1,385) (1,599) • $254 million increase in inventories to support availability and Property, plant and equip
Slide 20: Funding and dividends
Funding and dividends Debt facility maturity profile ($m) Financing costs Financing costs increased by $58 million to $271 million Bank facilities SLL Bank facilities AMTN • AASB 16 lease financing costs increased by $32 million to $210 300 Weighted average drawn debt million, reflecting higher inte
Slide 21: Supermarkets
Supermarkets Supermarkets Coles has begun a trial of digital Smart Trolleys, helping shoppers save time, manage their 19 budgets and check out faster.
Slide 22: Supermarkets – key metrics
Supermarkets – key metrics Sales revenue eCommerce sales growth1 Reported EBIT Underlying EBIT2 $1,077m $1,169m $20.6bn 22.6% 7.0% vs. pcp 11.0% vs. pcp 4.3% vs. pcp vs. pcp 5.6% ex-tobacco vs. pcp Exclusive to Coles Exclusive to Coles Reported EBIT Underlying EBIT2 sales revenue growth margin margi
Slide 23: Supermarkets – 1H25 results
Supermarkets – 1H25 results Growth underpinned by value campaigns and supply chain resilience $m 1H25 1H24 Change Key commentary Key P&L items • Sales growth driven by continued investment in value campaigns, successful Sales revenue 20,629 19,778 4.3% execution of seasonal (including Christmas, Hal
Slide 24: Liquor
Liquor Liquor 22 Canard-Duchêne, the official Champagne partner of Golf Australia, available exclusively at Coles Liquor.
Slide 25: Liquor – key metrics
Liquor – key metrics Sales revenue 2Q25 sales revenue Reported EBIT $2.0bn $1.2bn $67m 0.8% vs. pcp 1.5% vs. pcp (20.2%) vs. pcp 1.8% ex-bulk and affiliate sales 2.0% ex-bulk and affiliate sales eCommerce sales growth1 Exclusive Liquor Brand Liquor store renewals 9.2% 302 67 vs. pcp awards received
Slide 26: Liquor – 1H25 results
Liquor – 1H25 results Growth impacted by subdued market, however performance improved across the half $m 1H25 1H24 Change Key commentary Key P&L items • Sales revenue was subdued during the period as economic pressures Sales revenue 2,004 1,988 0.8% impacted discretionary spending, however performan
Slide 27: Outlook
Outlook Outlook Coles partnered with Planet Ark in awarding 20 Australian schools a share in $100,000 25 to help fund sustainability initiatives.
Slide 28: Outlook
Outlook Customers remain value conscious with our exclusive brand • In the first seven weeks of 3Q25, Supermarkets sales revenue grew by 3.4%1 as we cycle a very strong 3Q24 portfolio continuing to Supermarkets • On a two-year stack, the growth rate was 8.3%2 grow and our value offering, including F
Slide 29: Q&A
Q&A Coles’ Christmas menus under $100 designed to make hosting delicious, easy and affordable, allowing 27 customers to celebrate with ease and spend more time enjoying Christmas with family and friends.