Australia's No. 2 grocer Coles posts better-than-expected annual profit

Aug 25 (Reuters) - Australia's ‌Coles ​Group ​reported a better-than-expected annual profit on Tuesday, helped by stable financing ‌cost savings as well as strong ⁠margin expansion and performance in the supermarkets ‌business.

The country's second-largest grocer ‌reported underlying net profit of A$1.26 billion ($900.77 million) for the year ended ​June 28, compared with A$1.10 billion a year earlier.

That beat a Visible ⁠Alpha consensus estimate of A$1.24 billion.

Coles, founded more than ​a century ago in Melbourne, declared a final dividend of 37 ​Australian cents per share, ‌up from 32 Australian cents from a year earlier.

Revenue from ⁠sales at the Supermarkets division, which accounts for the bulk of the group's earnings, ⁠rose 3.7% from a year ago to A$41.47 ​billion, but fell short of market expectations of A$41.52 billion.

The grocer said the division's sales ‌growth for the first eight weeks of the 2027 fiscal ‌year was consistent with the fourth ⁠quarter of the 2026 ‌fiscal year.

($1 = ​1.3988 Australian dollars)

(Reporting by Sherin Sunny in Bengaluru; Editing by Vijay ‌Kishore)

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