Coles Group Ltd

COL: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$59.40	Grsw	Rrtzkzbn

Coles Earnings: Supermarkets Successfully Curb Theft

Johannes Faul

Aug 28, 2024

We lift our fair value estimate on no-moat Coles by 3% to AUD 15.50, mostly reflecting the time value of money. Net profit after tax of AUD 1.1 billion comfortably beat our estimate by 5%. However, our earnings forecasts are largely unchanged. A challenging liquor retailing environment and higher interest expenses offset a slightly improved near-term outlook on supermarket earnings. We trim our fiscal 2025 and 2026 NPAT estimates by 3% and 1%, respectively.

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