Coles Liquor has reported mixed fortunes in its FY2025 results with sales revenue increasing (over a normalised 52-week year) by 1.1 per cent to $3.7bn, while underlying earnings before interest and tax fell by 10.1 per cent (normalised) to $121m.
The Coles Liquor eCommerce proved to be a highlight for the group delivering a 7.2 per cent increase in sales revenue and penetration increasing to 7.4 per cent (8.6 per cent including liquor sold through Coles Online) supported by key trade campaigns, including Cyber Week and Click Frenzy.
In its results statement, Coles said: “The liquor market remained subdued throughout the year with cost-of-living pressures continuing to influence customer behaviours. However, sales growth was supported by new stores, including our Tasmanian acquisition, strong trading across key events, including Christmas and Easter, and a positive response to increased tailoring of store ranges to cater for local demand, particularly in the wine category.
“Customer value perception also improved as we moved to consistent pricing across all banners and launched our ‘Price Match Promise’ and our Flybuys ‘Buy More, Save More’ offer.”
Over the course of the year Coles Liquor launched 196 private label products and opened 16 new liquor stores. In addition the group closed 10 stores and completed 118 store renewals, including 52 stores being converted to the Liquorland banner. At the end of the financial year the Liquor portfolio comprised 998 stores.
The results also detailed how the liquor business has traded in the first eight weeks of FY2026, with the group saying: “In Liquor, in the first eight weeks sales revenue growth was flat.
“Whilst the market remains subdued, the convenience of our offer and the investments we are making in ‘Simply Liquorland’ and in streamlining our operations will enable us to benefit from improved operating leverage as cost-of-living pressures ease.
“’Simply Liquorland’ is expected to be completed by the third quarter of FY26 and incur one-off costs of approximately $20m.”
Overall Coles reported $44.5bn in sales, a 3.6 per cent (normalised) increase, with a reported $1.1bn net profit after tax, a 2.4 per cent (normalised) increase on the previous year.
Speaking about the overall result, Coles Group CEO, Leah Weckert said: “In FY25 we maintained a consistent focus on our strategic priorities. We were clear that value, quality and availability remained important to our customers.
“In addition, continuing to manage loss and delivering on our Simplify and Save to Invest commitments remained key to achieving our financial objectives. We made good progress in each of these areas resulting in increased customer satisfaction scores and earnings growth.
“At the same time, we delivered several major milestones in our capital investment program, including the launch of our Kemps Creek ADC and two CFCs, and these investments are already delivering results. Pleasingly, we also achieved our highest ever team member engagement score.
“Our more than 115,000 team members are critical to the success of Coles. They often go above and beyond to support our customers and serve our local communities. We are proud of the work they have done this year, particularly in responding to events including Cyclone Alfred and the severe floods which impacted communities in Far North Queensland and Northern New South Wales, and I would again like to acknowledge their efforts.”
Looking ahead Weckert, said: “As we enter FY26, we are again clear on the priorities for the year ahead. Ensuring our value proposition and offer resonates with customers, delivering consistent quality and availability, continuously improving customer experience in-store and online and maintaining a laser focus on costs.
“We are also focused on unlocking the full benefits from our ADC and CFC investments for the benefit of both customers and shareholders.”