Good morning and thank you for joining our full year results call this morning. Before I begin, I would like to acknowledge the traditional custodians of this land on which we meet today, the Wurundjeri people of the Kulin Nation.

We acknowledge their strengths and resilience, and pay our respects to their elders, past and present. I am joined in the room today by Charlie Elias, our CFO; Matt Swindells, our Chief Operations and Supply Chain Officer; Anna Croft, our Chief Commercial and Sustainability Officer; Michael Courtney, our Chief Customer Experience Officer; and Claire Lauber, Chief Executive Officer, Liquor.

Moving now on to slide three. FY26 was another year of strong execution where we strengthened our competitive position and grew market share in Supermarkets.

Excluding significant items, Group EBIT increased by 9.9% and NPAT increased by 13.7%. Digital was again a standout with Supermarkets eCommerce sales increasing by 26.4%, and importantly, our customer fulfillment centers delivered positive EBITDA in only their second year of operation.

We delivered $311 million of Simplify and Save to Invest benefits, helping us to continue to invest in value and the customer experience. What is particularly pleasing is that our financial performance was accompanied by further improvements in customer satisfaction and our highest ever team member engagement scores.

We have also announced targeted investments in our next phase of growth. This is across new stores, online, and technology, coupled with a clear strategy to improve the performance of our Liquor business.

I will talk to this in more detail in my presentation. Moving onto slide four and the financial highlights.

We reported Group sales revenue of $45.6 billion, an increase of 2.8%. As I just mentioned, excluding significant items, Group EBIT increased by 9.9% and NPAT increased by 13.7%.

In Supermarkets, sales revenue excluding tobacco increased by 5.1%, and Supermarkets EBIT increased by a very strong 12.2%, underpinned by top-line growth and EBIT margin expansion of 43 basis points. Charlie will talk more to the financials in his presentation.

Moving onto slide five. The common thread through these results is the consistent execution of our strategy.

Our customer proposition is resonating. We have continued to invest in value, exclusive to Coles is performing strongly, and customer satisfaction has improved.

Our eCommerce business is scaling profitably with strong eCommerce growth, positive CFC EBITDA, and continued improvements to the customer proposition. Our productivity programs are allowing us to convert that growth into earnings with EBIT growth significantly ahead of sales.

Our strong cash generation and balance sheet gives us the capacity to reinvest in the business and pursue the next phase of growth. During the year, we refreshed our strategy flywheel to reflect the increasing importance of non-food everyday essentials beyond food and drink and the growing role AI is playing across our business.

The fundamentals of our strategy, however, remain consistent. Let me take you through the progress we've been making, starting with destination for food, drink, and everyday essentials on slide six.

We know value remains front of mind for Australian households, and delivering value for our customers remains one of our highest priorities. During the year, we continued to strengthen our value proposition in a number of ways.

We expanded our Everyday value range, with more than 5,600 products now providing customers with consistent value whenever they shop. At the same time, we have been simplifying our promotional program around fewer, bigger, and more impactful offers.

This is about making specials truly special, and at the same time, making execution simpler for our customers and our team members. Our seasonal campaigns and [community?]

continuity programs continue to resonate strongly. We are increasingly using Flybuys and our digital capabilities to deliver more relevant and personalized value.

Our Exclusive to Coles portfolio also remains a key differentiator for us, making shopping more affordable. We saw growth ahead of the rest of store.

Importantly, we're delivering value across all price tiers, while continuing to offer the quality products our customers expect from Coles. Let's discuss this in more detail on slide seven.

Exclusive to Coles delivered sales growth of 6.1%, with Coles Finest continuing to perform particularly well, with sales increasing by 9.2%. Exclusive to Coles plays an important role in both our value proposition and differentiation.

We want to make shopping more affordable for customers, and we also want to create a range of products, valued for their taste or functionality, that are only available at Coles, providing a reason for customers to choose to shop with us. That means focusing our innovation where we believe we can lead and where there is an opportunity to offer something genuinely compelling.

We see particular opportunities in health and convenience, and saw strong momentum from our PERFORM high protein convenience meals this year. We also saw strong growth in our Ultra cleaning range in non-food.

Quality and innovation remain at the heart of the portfolio, and it was great to see our products recognized with 40 awards, including 17 Product of the Year awards. We've also expanded our exclusive partnerships with leading brands, including M&S, Gekkeikan, and Gami.

These partnerships, together with our innovation, broaden our offer and give customers more reasons to choose Coles. Moving onto slide eight.

As I said at the start, one of the outcomes I was most pleased with this year was the improvement we saw in our customer satisfaction metrics. It is great to have seen a step on in all of the important metrics of quality, range, availability, price, and store look and feel for the year.

For me, the important takeaway is that customers are noticing the changes we are making. Our investments in value, quality, and range, together with improvements in availability and execution in our stores, are translating into a better customer experience.

There is always more we can do, but the breadth of improvement across these measures gives us confidence that our customer proposition is moving in the right direction. Moving onto slide nine and accelerated by digital.

Our eCommerce business had another very strong year with Supermarkets eCommerce sales increasing by 26.4% to $5.6 billion and penetration of 13.6%. We're delivering double-digit growth across all our fulfillment channels and building a differentiated offer across the full range of customer shopping missions.

Whether that be through our CFCs, which provide the best to our customers with our best uh online availability, guaranteed shelf life, and a high quality next day and same day delivery proposition. Customers can even shop later at night now for delivery the next morning.

Or whether it's customers looking for immediacy, our expanded partnership with Uber Eats gives them access to around 17,000 products. This is the largest grocery range available through an on-demand delivery platform in Australia.

We also continue to expand Windowless, Rapid, Click & Collect, and saw strong growth in our Coles Plus and Coles Plus Saver subscriptions. We've also seen some very good improvements in Click & Collect wait times.

Importantly, our eCommerce business is not only growing strongly, but it is scaling profitably. We have delivered this through improvements in pick and last mile delivery efficiencies, as well as growth in our Coles 360 retail media business.

We're also really pleased to report that our CFCs are EBITDA positive, which I'll talk to now on slide 10. Customers are responding positively to our Deliver More proposition, with strong volume growth and CFC NPS significantly ahead of total online NPS.

Sales through the CFCs grew by more than 30%, ahead of overall eCommerce growth, as we expanded catchments and introduced same day delivery. We also continued to improve the economics, with CFCs achieving positive EBITDA for the year.

This was achieved through high volume, together with operational improvements, including on-grid robotic pickers, auto-frame loading, and auto-bagging, which were all installed during the year. This is an important milestone in only the second year of operations, and it demonstrates that we can deliver a better customer proposition, while at the same time improving efficiencies as the business scales.

Moving now on to slide 11. Our digital assets and Flybuys loyalty program give us an increasingly powerful ability to connect loyalty, eCommerce, and retail media.

We know customers value offers that are relevant to them rather than simply receiving more offers. During the year, we continued to enhance our digital functionality and increased personalization across the customer journey.

Features such as New For You and My Weekly Specials are making it easier for customers to discover products and value that is relevant to them. At the same time, our customer data capabilities are helping us create more connected experiences across our app, website, and stores.

Coles 360 is becoming a more important part of the business. We know that retail media in Australia is a large and growing market.

In-store, that might be digital screens, POS material, or Coles Radio. On-site, it is banners, tiles, and videos in the app and on our website.

Off-site, it could be YouTube and social media. The goal for us is to make the right value more visible and help suppliers connect with customers in ways that are useful, relevant, and trusted.

This is an important area of growth for us. Moving onto slide 12 and our Simplify and Save to Invest program.

Our Simplify and Save to Invest program remains a core part of how we operate. We delivered 300 mil $311 million in benefits in FY26, taking cumulative benefits since FY24 to $876 million.

We remain on track to exceed $1 billion of benefits by the end of FY27. If we look further back, we have now delivered around $1.9 billion of benefits since FY20 through Smarter Selling and our previous Smarter Selling program.

This demonstrates the consistency of our approach to productivity. These savings are important because they help us offset inflationary and other cost pressures, while creating capacity to reinvest in value, our stores, and our digital capabilities.

Increasingly, data, technology, automation, and AI are helping us identify new sources of productivity. Moving onto slide 13.

AI is already well established across Coles and delivering value in many parts of our business. What has changed recently is the pace of capability and the breadth of where we can apply it.

Coles has a unique combination of data and physical assets: millions of customer transactions every week, more than 1,800 stores, 8,000 suppliers, 115,000 team members, and 10.3 million active Flybuys members. We are increasingly bringing together those capabilities to improve outcomes for customers, our operations, and our team members.

For customers, AI is helping us to improve personalization, product discovery, and the relevance of our offers. The next wave is conversational shopping and agentic commerce.

Over time, we see the potential for customers to engage with us in a much more intuitive way, from discovering what they need, through to transacting and receiving post-purchase support. Given the scale of our customer relationships, Flybuys, and our digital channels, we think this is a particularly exciting opportunity for Coles.

Across our operations, AI is already embedded in our decision-making in areas such as forecasting, space and range optimization, and inventory and stored decisions. We are building towards end-to-end optimization across our supply chain, bringing together decisions across inventory, DCs, transport, and replenishment, so that increasingly, we can optimize the system as a whole, rather than individual decisions in silos.

For our team members, we are using AI to make everyday tasks simpler and more productive. The next opportunity is to move beyond individual productivity tools, towards function-specific agents and AI embedded directly into everyday workflows.

This will help our team members spend less time on repetitive tasks and more time on the work that creates value. Overall, we remain disciplined about where we will deploy AI.

Our focus is on areas where it can meaningfully improve customer experience, availability, growth, and efficiency, and we're excited about the opportunities ahead. Moving onto slide 14.

Alongside our financial performance, we remain very conscious of the role that Coles plays for our team members, suppliers, and communities. We achieved our highest ever team member engagement score during the year, placing Coles in the top quartile against the Australian benchmark for the third consecutive year.

We continued to support our suppliers and growers, with more than 97% of our fresh produce sourced from Australian growers, and we awarded more than $3.5 million in grants through the Coles Nurture Fund during the year. Our community partnerships also remain an important part of who we are.

Coles contributed $45 million in community support, in addition to the equivalent of 40.9 million meals donated to SecondBite and Foodbank. We continued to progress against our sustainability priorities, including an 82.6% reduction in Scope 1 and 2 emissions from our FY20 baseline.

These outcomes reflect the commitment of our team members right across Coles. Moving on now to our strategic update.

Over the past 3 years, we have invested significantly in transforming Coles. As we look back at the priorities we set 3 years ago, we can see tangible evidence that the time and resources that we have invested is delivering outcomes.

Over the past 3 years, we have materially strengthened the business. Starting with our customer proposition, Exclusive to Coles has continued to grow and differentiate our offer, while Coles Finest has delivered particularly strong growth.

We have enhanced value through the introduction of more Everyday value products, and reduced promotions, making it easier for customers to find value in-store. At the same time, we have seen customer satisfaction improving across all key metrics.

In digital, we have significantly different business to where we were 3 years ago. eCommerce sales have more than doubled.

Our two CFCs are now fully operational and delivering strong returns, and we have a market-leading immediacy offer, and have made meaningful enhancements to our app and website to improve the customer experience. At the same time, we have transformed our supply chain, with our two ADCs now fully operational, which are delivering improvements in availability and cost efficiencies, and an optimized store network.

When we look across the business today, we have a stronger customer proposition, a much larger digital business, and a more automated supply chain, and a more productive operating model. Moving onto slide 17.

Importantly, the strategic progress that we have made has translated into strong financial outcomes and improved returns. Since FY23, sales have grown at a compound annual rate of 4%.

Over the same period, EBIT has grown at 7.7% per annum. Return on capital has increased by around 80 basis points to 17.3.

This That is important, as our objective has never simply been to grow the size of the business. We want to deliver sustainable earnings growth and attractive returns on the capital we invest.

The combination of customer-led growth and disciplined productivity has allowed us to grow earnings faster than sales, while continuing to reinvest in the business. It has been underpinned by disciplined capital allocation, including consistent growth in dividends, which have increased from 66 cents per share in FY23 to 78 cents per share this year.

Moving onto our capital allocation framework on slide 18. Over the past 3 years, we have on average converted more than 100% of earnings into cash, while investing around $1.1 billion a year in our core business across maintenance, growth, and efficiency.

At the same time, we have maintained a strong investment-grade balance sheet, giving us capacity to invest through the cycle. That financial strength has enabled us to complete our major ADC and CFC investments, pursue strategic acquisitions, including our acquisition of MilkCo and several strategic property investments, and progressively increase dividends, while retaining flexibility for further shareholder returns.

Looking ahead, our approach will remain unchanged: invest where we see attractive returns, maintain balance sheet strength, and return surplus capital to shareholders. Moving now onto slide 19.

With the transformation platform we've built over the past 3 years now well established, we're moving into the next phase of targeted investment. This isn't the entirety of our strategy, and we are looking forward to sharing more at our Investor Day later in the year.

I wanted to provide some insights this morning on where we are investing for future growth. First, our Victorian ADC.

The $880 million development remains on time and on budget. Once operational, it will have capacity to process 4.6 million cartons a week, and complete the automation of our ambient distribution network across the Eastern Seaboard.

Secondly, stores and technology. We plan to invest an additional $300 million by the end of FY28, supporting around 45 new supermarkets, largely in infill locations and high-growth corridors, and around 150 renewals.

These investments will allow us to augment our store footprint, improve the customer experience, create more capacity for online fulfillment, and make our stores more efficient. We'll also continue to simplify our technology and expand the use of AI-enabled capabilities.

Thirdly, Liquor. FY26 performance was below our expectations.

We have completed a strategic review and have established a clear plan ahead. We will be focused on creating a more integrated food and drink experience across loyalty and eCommerce, optimizing the store network with greater emphasis on supermarket co-locations, and simplifying the operating model.

Finally, the Coles Capability Center. Our expanded partnership with Accenture will give us access to world-class skills and technology at greater scale and pace.

It will help accelerate technology delivery and create a more efficient operating model. Benefits are expected to begin in FY27, and build to an annualized run rate of more than $100 million by the end of FY29.

Together, these investments are focused on improving our customer offer, creating capacity for growth, and delivering productivity benefits and attractive long-term returns. We have a strong balance sheet and will remain disciplined in how we allocate capital, while ensuring we continue to deliver a competitive offer that meets the needs of our customers.

I will now hand over to Charlie, who will take you through the financials in more detail. Uh

thank you, Leah, and good morning, everyone. I'll now take you through the Group financial results in more detail.

Overall, we are pleased with the financial performance of the Group in FY26. The result reflects continued sales momentum in Supermarkets, strong operating leverage, disciplined cost management, while at the same time continuing to invest in value for our customers.

Moving on to slide 21. We reported Group sales revenue of $45.6 billion, an increase of 2.8%.

Excluding significant items, Group EBITDA increased by 7.1%, Group EBIT increased by 9.9%, and NPAT increased by 13.7%. Importantly, earnings growth was well ahead of sales growth, reflecting the strong Supermarkets performance, operating leverage, and continued discipline across cost base.

The Board declared a fully franked final dividend of 37 cents per share, taking total dividends for the year to 78 cents per share. This represents an increase of 13% compared to FY25.

Moving to the segment overview slide on 22. Starting with Supermarkets.

We had a very strong year with EBIT increasing 12.2%, reflecting strong strong top-line growth coupled with 43 basis points of margin expansion. Sales revenue increased by 3.7%, successfully cycling the impact of the competitor industrial action in the prior corresponding period, and achieving market share growth for the year.

Excluding tobacco, sales revenue increased by 5.1%. Our strong EBIT margin expansion was driven by improvements in both gross profit margin and cost of doing business as a percentage of sales.

For the year, our GP margin increased by 37 basis points, and CODB as a percentage of sales improved 6 basis points. The GP result reflected the annualized benefit from our ADC program and a significant decline in tobacco sales following the legislative changes at the beginning of the year.

Both of these were weighted towards the first half. Going forward, we would not expect to see material benefits to gross margin from tobacco, given that we have reached a more stabilized level.

We also continue to see benefits from strategic sourcing and SSI initiatives, as well as the growth of 360 media income. Pleasingly, these benefits were able to successfully offset the meaningful investments we made in value throughout the year, including red meat, as well as incremental fuel costs in the second half as a result of the geopolitical tensions.

In terms of cost of doing business, again pleasingly, our SSI program went a long way offsetting our inflationary cost pressures this year, with $311 million in savings and a majority being CODB-related. We also benefited from major project implementation, dual-running, and transition costs falling away, which assisted both GP and CODB.

We are pleased with the continued strong growth in eCommerce sales coupled with the ongoing positive margin outcome. Our ability to scale our digital digital business profitably is something we know you have been focused on, and we have continued to deliver on this.

As Leah mentioned, over the last 3 years, we have doubled our eComm sales and grown our EBIT margin by 19 basis points to 5.7%. This is a real achievement and reflects the significant benefits of our major transformation programs, and continued focus on SSI have delivered.

As we look to the year ahead, we will be continuing to work hard on SSI, and continue to deliver the benefits from strategic sourcing, growing and growing Coles 360. We know these programs are more important than ever with value being a key focus for our customers, and inflation still coming through the cost base.

We are also keeping a close eye on retail crime given the current pressure on consumers, as we know this remains an industry issue. In addition to the above, we are really pleased we have announced the extension and expansion of our strategic partnership with Accenture to establish our Coles Capability Center, which will support the enhanced digital technology capabilities, greater operational efficiency, and improved outcomes for the business.

The strategic partnership is expected to deliver annualized cash benefits of over $100 million per annum by the end of FY29, with one-off implementation and establishment costs of $190 million in FY27. These costs are expected to be treated as a significant item.

Importantly, this program is incremental to SSI, with a really strong payback as this program will do much more than just save costs, it will accelerate our opportunities and strengthen our competitive position. Moving on to Liquor, the sales revenue declined by 3.3% and EBIT declined by 47.8%.

Sales were impacted by the cycling of the prior year benefits from competitor supply chain disruption, together with ongoing cost-of-living pressures and subdued consumer sentiment. Promotional activity across the sector is also elevated, particularly in the big-box end of the market.

Notwithstanding this, we completed our Simply Liquorland store conversion program and our convenience portfolio, representing more than 90% of our store network, delivered positive sales growth. Gross margin increased by 40 basis points, supported by strategic sourcing, promotional optimization initiatives, growth in Coles 360 retail media, and a disciplined approach to price investment.

Liquor EBIT of $59 million was impacted by softer top line and a $20 million in one-off costs relating to Simply Liquorland conversions. In other, revenue related solely to the product supply agreement we have with Viva Energy.

The improvement in the other EBIT line primarily reflected lower corporate costs, partly offset by higher net property losses. Turning to operating cash flow on slide 23.

Operating cash flow, excluding interest and tax, was $4.3 billion with a cash realization of 101%. Working capital was broadly neutral for the full year.

Higher receivables were partially offset by increased payables, largely due to the impact of inflation on cost of goods, while inventory remained broadly stable compared with the prior year. The movement in provisions uh and other primarily reflects the flow provision, which is a non-cash, but recognized in EBITDA.

Moving to capital expenditure on slide 24. Gross operating capital expenditure on an accrued basis was $1.2 billion, a decrease of $76 million compared to the prior year.

As capital expenditure falls into four areas: store renewals, growth initiatives, efficiency initiatives, and maintenance. Within renewals, we completed 212 store renewals across our network, consisting 71 in Supermarkets and 141 Liquor stores.

Within growth, we opened 13 new supermarkets and 16 new liquor stores, while also continuing to invest in our eComm business. Efficiency initiatives include investments in store at store front-end service transformation, Liquor easy ordering, and our Victorian ADC.

Maintenance CapEx included ongoing refrigeration, electrical, store, and technology life-cycle replacement programs. We continued to opt- optimize our property portfolio with net uh property capital expenditure increasing by $162 million, due to an increase in property acquisitions and developments, and lower proceeds from divestments.

Looking ahead, as Leah talked to, we are stepping up our capital expenditure this year to invest in a number of incremental strategic projects, including an additional $150 million in FY and FY FY27 and FY28, in growth through opening 45 new supermarkets, delivering a net space growth well in excess of 2%. The renewal of 150 supermarkets, increasing online capacity, enhancing the customer experience, and priority technology to both improve efficiency and accelerate AI capabilities.

The increase is not an ongoing step-up, instead, but a very set of specific growth investments. We're also making excellent progress with our Victorian ADC, and the project is both on time and on budget, and will complete the automation of our ambient distribution centers down the Eastern Seaboard.

The FY27 CapEx for the Victorian ADC uh is expected to be approximately $300 million. Overall, inclusive of our core CapEx program, we are expecting operating capital expenditure for this year to be around $1.55 billion.

Turning to balance sheet liquidity on slide 25. Our funding position remains strong.

At year end, our weighted average drawn debt maturity was 4.4 years, with undrawn facilities of $2.5 billion, while our lease-adjusted leverage ratio further strengthened to 2.3 times. We continue to hold investment-grade ratings of BBB+ with S&P Global and Baa1 with Moody's.

Combined with our strong balance sheet and cash generation, this provides the capacity to fund targeted growth investments, maintain financial discipline, and continue returning dividends to shareholders. As I said earlier, the Coles Board declared a fully franked final dividend of 37 cents per share, taking total dividends for the year to 78 cents per share, a 13% uplift.

As you can see on this slide, we have a healthy franking credit balance of approximately $550 million after payment of our final dividend. To summarize, before I hand it back to Leah, FY26 was a strong financial year for the Group.

We delivered earnings growth ahead of sales, strong cash generation, and an improvement in balance sheet metrics. This puts us in a good stead to fund the next phase of growth uh for Coles.

I'll now hand it back to Leah to take us through the outlook and concluding comments.

Thank you, Charlie. Turning now to our outlook on slide 33.

We enter FY27 in strong position, with Supermarkets having gained market share, and significantly improved customer satisfaction scores over the past year. Sales growth for the first 8 weeks of FY27 was consistent with fourth quarter FY26.

In the first 4 weeks of FY27, sales momentum was well ahead of fourth quarter FY26, with a temporary moderation during a competitor's collectibles campaign in late July and early August. Following the end of the collectibles campaign, sales recovered quickly, back to levels consistent with fourth quarter FY26.

Our differentiated eCommerce offer continues to be a significant driver of growth, with penetration increasing to 15.7% over the period. In Liquor, the sales trajectory strengthened across the first 8 weeks relative to fourth quarter FY26.

Our convenience portfolio continued to deliver positive growth, while performance in the warehouse portfolio also improved. With that, I'd now hand back to the operator for Q&A.

good morning, Leah, Charlie, and team. Um just wanted to come back to the strategic initiatives you're calling out, the four major areas there.

Um yeah, appreciate clearly there's a fairly meaningful step-up in CapEx as uh you look to invest in those. From a return's point of view, how should the market sort of think about the pathway for these investments and especially when uh we should expect these returns to to start to be realized in a tangible sense?

Yeah. Thanks, uh Caleb.

Thanks for that question. It's a great It's a great question.

Let's Let's unpick Let's unpick those uh very very clearly. Firstly, the ADC, I think uh uh you're probably pretty pretty well versed on the uh on the ADCs going going forward.

As that'll come into train through FY29, FY30. Uh this year's CapEx we announced is $300 million.

We've had a very disciplined way in terms of we allocate capital to those sort of programs. Uh they are, risk-adjusted returns on uh on our cost of capital, and very clear how how they'll drive benefits.

If I think about the step-up in the store uh programs, we're talking about 45 supermarkets over the next 2 years. Uh that is taking our net space growth to well over 2%.

Um so that's a significant step-up in increasing in terms of capacity. We love investing in our stores.

They are some of the best returning assets that we buy. Very strong returns on capital.

If I look at the renewals step-up to 150, I know that we did 71 in FY uh 26. Uh we are stepping up to 75.

The nature of the spend is really important in those uh 75 uh yeah, the uh the 150, sorry, that we're talking about over the next 2 years, is it's it is not just They're not standard What we're looking at doing is increasing our online capacity and improving the customer experience in those doors. We know, Caleb, when we uh if you recall when we actually uh took the next-day home delivery volume out of the uh out of our Melbourne and Sydney, when we freed up that capacity, it really did facilitate strong growth in our eCommerce business.

We're really excited about the growth that can unleash in in eCommerce and in our stores, but also improve what we're doing. What are we doing in those stores?

Now, improving things like staging areas, uh the refrigeration in the back of house, really ensuring that these that these stores can really deliver and cater things like Click & Collect more more bays, etc. Really driving sort of growth.

Again, we're really pleased with that growth. If you look at our uh performance on our capital, more importantly, we have been consistently um investing $1.1 billion ex the transformation programs.

What you can see over the last few years is our return on capital has improved um yeah, over 80 basis points of that period. I think a very strong returning uh set of CapEx.

Great. Then, uh I guess a bit of a follow-up.

Um appreciate this isn't necessarily kind of a CapEx item. Um but perhaps a little bit surprised that that the Coles 360 or retail media um hasn't been as much of a focus here.

I appreciate it's not new. I appreciate, it comes up 55% CAGR called out um over the past few years.

Just sort of operationally and and the sort of benefits you see that driving on a go-forward basis, just keen to sort of understand where that's at. Both from a capability point of view, uh from a sort of inventory point of view and in third e-commerce, and then sort of how you're thinking about that um as sort of an investment um on a go-forward basis?

Thanks for the question, Caleb. I'll I'll start and then I might get Michael to give us a bit of color.

Um I think we were quite pleased with double-digit growth in the Coles 360 uh space. We've continued to bring on uh more assets, we've improved our measurement capability uh through the year, and really focused on uh ensuring that that we're really listening to feedback on how we can lift ROI.

That's been some big focus areas over uh the last 12 months, and I think we're uh feeling like the business is really starting to get some momentum behind it. Maybe, Michael, you could give a bit of color to that.

Happy to, Leah. I I think the key word that both yourself and Caleb used is capability, because this has been a year where we are continuing to cape build capability so that we can keep scaling the business into the future.

Leah mentioned some of the areas where we're building bringing in capability from a product aspect, of whether that's ad server manager, whether it's reporting and measurement capability that we're being able to offer to suppliers, because it's what they've been asking for. We've made decent improvements in that space.

I think the other area of where we've been building capability over this year that we haven't spoken a lot about is in the people space, as well. Back in September last year, we create we completed quite a big insourcing exercise of some capability that previously sat externally, had helped us scale the 360 business through the initial phase of growth.

Bringing that capability in-house to have it closer to our planning, our technology, is going to help us accelerate in this next phase of growth. Just to finish up on that, I I would echo Leah's sentiment.

Growing double-digit in a year where we're still rapidly building capability, I think is a good result. I think it positions us really well for continued growth into the future, in what is a large and attractive market for us.

That's great color, everyone. Thank you very much, appreciate it.

Oh, morning. Morning, Leah and Charlie.

Uh my question's just on the July um acceleration in the first few weeks. Is there a benefit from from the Uber Eats exclusivity arrangement in in that time frame?

Or, if not, what's what's driven that acceleration if I can just touch on that? Cuz I guess if it's the Uber Eats benefit, that should continue into the second quarter is is the way I'm thinking about that.

Thanks. Uh a-

again, I'll start and then maybe ask for a bit of color from Michael. I think actually as we came into the back end of uh FY26, Peter, we actually saw probably a strengthening in the in the market.

June picked up again a bit versus where we'd been in May. Then actually going into July, we saw a further pick-up again.

There's definitely strength in the grocery market at the moment, and certainly that would align with some improvements that we've seen in consumer sentiment um since April and May, where it sort of hit some low points, um but also more and more customers telling us that they're eating more at home than they are out of home. Uh so I I I do think that um that is playing a role there.

That being said, um as we've gone through these first 8 weeks, we have seen uh really strong strength in the online proposition. Uh and I do think, and you will have seen we've called that out in the in the outlook, but uh I do think that that's starting to really highlight that we've got some areas of differentiation in there, with regards to the Deliver More offer through the customer fulfillment centers, um but also through the Uber partnership, which is growing very strongly for us.

Michael, did you want to just make a couple of comments on the Uber partnership?

Very happy to. We're very pleased with how the momentum in that offer continues to grow.

If you're thinking about the sales impact of it, in terms of timing, I would think about it from the perspective of when we announced the deal, which was just prior to Christmas. Because what that means is is that through the second half, really from the start of this calendar year, we've seen sales through our immediacy offer and our partnership with Uber continue to increase steadily throughout the second half.

That's a really good achievement when you think about at the start of this calendar year, when we went from two platforms down to one, we first had to recover the sales that we were losing from the second platform, which we did successfully very quickly, and then continued to grow. Throughout um the first half of this calendar year, we've continued to see benefits.

I think that's testament to what the strength of the partnership is, because that extended partnership with Uber, we think gives us the market-leading offer in what is a very high-growth channel. Why is it a market-leading leading offer?

Because from a customer perspective, we think we've got the largest range in that space with over 17,000 SKUs. We're with we're the partner of choice on the largest platform in that part of market.

This partnership that we've signed with them, we're already seeing benefits from being able to plan marketing and promotional activity more effectively. Really pleased with how that's going, see room for further growth, and it's certainly been a strong part of what's been helping us get to such strong growth rates in eComm as an overall business.

As Leah said, it's one of the differentiated offers that we've got in that space.

That's great. Thanks, guys.

thanks, uh. Good morning, Leah, Charlie, and team.

Um, you've expanded your strategy to include everyday essentials, and I assume that appears to accommodate the interest that Coles announced about Greencross. Can you provide some indication to the capability that Coles has in everyday essentials in a standalone format, bigger and small, rather than a supermarket format?

As I think investors reacted negatively to Coles' interest in Greencross, suggesting a lack of confidence in that capability, and there appeared to be a preference for capital management. Can you maybe provide is this an opportunity for you to talk about the capabilities that um in everyday essentials as a standalone, please?

Uh

well, why don't I start maybe talking a little bit about the thinking behind Greencross, and then I might get Anna to talk a little bit about the focus that we've got in everyday essentials, which really for us is the non-food component of our of our grocery offer. Um so, Shaun, I think it shouldn't come as any surprise to anyone that we regularly assess opportunities which we think are going to complement or strengthen uh the business, and ultimately create value for for shareholders.

Uh and in general, we would be interested in looking at adjacencies that are quite close to the core areas of the business that we already run. Uh and so something like specialty retail is a good specialty pet retail, I should say, is a good example of this, because we already have a substantial pet business that we we run um with with Supermarkets.

I think if you go to the Greencross opportunity, we were attracted to it as a a segment because uh 70% of households have at least uh one pet, and so it does make it a real stable component of a weekly budget. You're also seeing the impacts of uh pet humanization and a focus on pet nutrition, uh which is really uh encouraging customers to to shop at pet specialty where they can get access to a different range and they can get access to advice.

I think what many people don't appreciate about pet specialty is there's not a lot of overlap between pet specialty and grocery pet. Um about 90% of the range that you will find in a in a pet specialty retailer is not available in a Coles.

Uh and because of the supplier dynamics, that's unlikely to change. You've you've seen us uh do the the the Swaggle um investments that we made.

That certainly te- taught us a lot uh about how to play in that in that specialty space. It's an area we will continue to look at um and assess opportunities uh going forward from an inorganic perspective.

I think given we ultimately weren't able to reach uh a point of value a point of agreement on value around Greencross, we're now firmly focused on what we can do uh in the short to medium term around organic opportunities. Maybe I'll get Anna just to to talk to that.

Hi, Shaun. Um non-food, as remains a really strategic priority for us, and uh we have made some really clear progress on establishing um strength in that area the last year.

That's really following on from the reset of the portfolio around value, better range relevance, and much stronger execution. Importantly and pleasingly, we've seen a real change in the trajectory of those categories.

After more than 2 years of what I'd say is really consistent year-on-year pressure on share, we have returned to positive share momentum throughout half two, which gives us increasing confidence that the changes we're making are working. There are a couple of things that have really been driving that.

Health and beauty continues to strengthen, we've seen really good share growth across many of the core categories, be that hair, dental, uh vitamins, face and body wash. That's been really deliberate around stepping up innovation in those areas and bringing in a much more differentiated uh range of both um exclusive and different brands.

Some of those in hair care might be MONDAY or Dolce Berry, uh and many others that we're working through. Also alongside that, we've strengthened our Everyday value proposition, making it much simpler for customers uh to find dependable value.

Actually, as we exited Q4, Everyday value was the highest contribution we'd seen out of those uh those categories. The other area I would just say is driving the performance is the strong results from our own brand and the new bulk offer.

Coles Ultra, as Leah touched on earlier, delivered double-digit sales growth in the year, uh and supported by very strong vol- volume growth. That was really about sharper value and innovation in the core categories that matter most.

Then, again, I think kind of a core category, but toilet paper, a really good example where we've invested in value, bulk, and price investment and both quality um into the own-brand business. That really is driving both improved improved offer and share.

We're not stopping there on own brand. We're building on that momentum, taking it into new categories and key areas that matter most for customers.

An example of this has been the strengthening of the CUB brand in baby, and we've gone into infant foods there in the last couple of months, and we've been really encouraged by customer response in that space. I'd say is overall, we're really pleased with the momentum, we're pleased with the positive share growth, but there is a lot to do.

It is a very competitive market, and we've got a clear plan, and we've just got to execute against it.

Great. Thank you, um Anna and Leah.

My second question's just around big-box liquor sales. I think in the third quarter you called out um that they were down some 20% in the uh uh that they were down 20%.

Can you just maybe quantify what they were down in the fourth quarter as trading still remains sort of difficult there? More generally, would you consider an exit of big box, possibly maybe at the end of lease, as it's unclear that ongoing investment in that business is sound and it seems as though convenience is the winning sort of channel, certainly for your business there?

Maybe some more detail on big-box trading and and sort of outlook, please.

Um we did we did see the big boxes improve in Q4 um relative to where we were in Q3. Overall for the for the total year, they still were in decline somewhere between sort of -15 and -20.

Um we we've done a full review now of the entire portfolio, not just the warehouses, but the entire Liquor portfolio. What I'd say is whilst the warehouses have underperformed, the performance is not uniform across all of the stores in the cohort.

What we've done in the review is look on a store-by-store basis very much at micro-location, which makes a big difference here to performance. Uh and what you're seeing in the strategic update that we've given today is on the back of that is the 30 store closures, which we're anticipating on doing in FY27.

I would say there is a disproportionate amount of warehouses that are in in that group. Um, however, for the warehouses that, haven't got the closures coming, um we we have optimism around getting them into a growth position again.

You uh actually, if you visited uh any of our stores even in the last couple of weeks, you'd start to have seen that there are some uh things that we are doing to really differentiate the range in the clan warehouse from the rest of the network, uh and we're very encouraged by the early performance of that.

Great. Thank you, Leah.

Hi, Leah. Um, maybe to follow on um on Liquor, I was interested um if I looked at the halves, um GP margins have gone up quite a lot in the second half for Liquor.

They're up 40 basis points for the full year and 20 odd basis points in the first half. It sort of implies 60 basis points in the second half.

At the same time, sales are still negative, arguably deteriorating a little bit. It's just trying to understand the the correlation there that, in a market that we understand is incredibly competitive, why your GP margins would be going up at the same time as your sales are going down?

Thanks for the question, Phil. I might ask uh Claire to answer this one for us.

Thanks for the question. Look, our our gross margin pleasingly increased by 40 basis points for a few reasons.

Um our strategic sourcing programs been really strong, um and improved in the second half. Um promotional optimization activities, um and also growth in our Coles 360 media income um has improved half-on-half, um and a really disciplined approach to price investment um throughout the year.

They're the key reasons why gross margin has improved, um acknowledging that, sales are still still challenged in some areas.

What about your um value sort of comparisons to the market? Have they weakened off at all?

I I know there's sort of two quite different trends going on in this business between the convenience side and the the Liquorland warehouse side, but just interested um there as to whether you need to do a bit more work to further sharpen pricing?

It's It's a good question. Um, I think we're comfortable with where our price indices are at the moment.

Um, as you can see, strategically, we're definitely moving to a stronger focus on the co-located uh stores with Supermarkets, uh and in by and large, that's our Liquorland and Liquorland Cellars formats, uh and they remain very competitive in terms of of their competition that they have uh in the market. Uh and as I said, with regards to warehouse, what we're looking to do is to really start to differentiate differentiate the range uh there so that we've got um an incremental offering for for customers there.

Is

is that what you mean when you say grocery in the liquor stores?

Uh it's uh it's combination of things. There are definitely some grocery items that have gone into warehouses, and uh they make a great incremental purchase when you're buying uh alcohol.

Uh think things like um mixers, soft drinks, chips, uh even things like Berocca, Phil, which you obviously need the next day. Uh, but we are also looking at differentiating range within the alcohol offer uh as well, uh at both ends, looking at um what we can do from a value perspective, but also uh bulk sizes and and more premium end as well.

Great. Thank you.

Hi, good morning, Leah, Charlie, and team. Uh my first question was just on the the trading update in supermarkets.

It was it was better than we're fearing based on the supplier feedback. Can I just ask, have you had to sacrifice some margin to sustain sales during this recent period, please?

Uh yeah. I I think we're quite pleased with where it ended up, given um if you look at the 2-year stack in particular, um I mean it's an unusual shape, but if you take consistent with Q4 and you stack it on where we were last year, which was 4.9% or actually probably the more relevant number is the 7% ex-tobacco, that's a very strong 2-year-on-year growth number, even with uh that moderation that we saw from the collectible campaigns for 3 to 4 weeks uh in the middle.

Uh and and as I said in the outlook, we're very pleased that um the sales have have recovered quickly um post the collectible campaign uh coming to an end. Um, I think more generally, not even just talking about the the first 8 weeks, that uh we feel the competitive intensity right now is um is quite uh strong.

That's not new, um but we certainly are seeing many of our grocery competitors investing uh into price, and we are uh responding to that to that to ensure that we re- remain competitive. Uh and then we're also proactively investing in areas, particularly own brand, um to to ensure that uh we're giving the customers a basket that um really is very value-oriented.

Thanks, Leah. Could I just ask on the the balance sheet positioning?

Um, just pulling together a couple things I think was said on the call. Uh I think you mentioned that you would look to return surplus surplus capital to shareholders, uh and in the earlier question, it was said that you're more focused now on organic opportunities in non-food.

Just pulling all that together, um the gearing is down to 2.3 times. It was, I believe, uh sort of over 3 times 6 years ago.

Can I just ask, do you think you actually do have surplus capital at the moment? Um, I guess that will depend on your acquisition outlook, but yeah, do do do you look to to return that capital to shareholders over the next 12 months or, I just want to get your thinking on that, please?

Uh

Adrian, great question. Thank you for that.

Look, uh I think it all starts, Adrian, with uh our our capital allocation framework that Leah took us through a little earlier. Um and really, we we do take a very disciplined approach how we allocate capital, and we take into account the things that you've highlighted, things like the strength of the balance sheet, um what our organic investment uh requirements might be, dividends, strategic flexibility, and of course, the relative returns that uh yeah, from all those various uh areas that you can deploy capital uh which become really important.

We have been, and as we've been paying out um dividends around 80% of our earnings in in the form of dividends each year. That's been really consistent since demerger.

Um and this year, we actually stepped it up, 13% uh and we're yeah, the fully franked dividend is $1 billion, uh which is which is quite a uh an achievement. In terms of surplus capital beyond uh our requirements, the Board is always going to consider the most appropriate way uh to deploy or return capital, and the objective uh is and will always be how do we generate the optimal returns for shareholders over the long term.

Thanks, Charlie.

morning, uh Leah and Charlie. Um just once on the renewal program.

Uh just want to ask about the average store age at the moment, um how uh I guess since it was either opened or uh last had a major renewal, as opposed to a light-touch renewal. Um where that is versus your target, and whether these 150 renewals are like uh incremental to to sort of what you have been doing, which is, 50 to 70 per annum in recent years?

Just keen to understand sort of the magnitude of what you're doing here on renewing the store network. Thanks.

No. Thanks, Bryan.

Great question. Uh I think we've we've previously said, I think when we were uh renewing at a rate of about 50, I would say that our store fleet was getting older, right?

When we stepped it up uh in FY26 to 70, uh that's the point at which is your fleet on general actually gets younger. Certainly, going forward with the 150 renewals that we are indicating, that we can see that our average fleet will get younger uh going forward.

It's a great reminder, though, of what are we spending the renewal amount on, and I think we we talked a little bit about, and I talked a little bit about, that this going to look at how do we actually build capacity uh to uh for growth. That's the important distinction.

These aren't just normal renewals. Uh and we will get a a younger fleet out of it, but will, more importantly, uh increase the capacity to facilitate um more online growth, but also better experiences for our customers in-store.

That's our focus uh with these one uh 150 renewals over the next 2 years.

Right. Just just to put that in context for us through numbers, is it possible to give us sort of an average spend per renewal in this 150 versus what you've been doing in recent years, which I assume is not as transformative for those particular stores?

We aren't going to go into I I won't go into in terms of break breaking it down. I think the best way to think about is if I look at the the sort of uh $300 million or the 150 over the next each year for FY27 and FY28, um 70 about 70% to 75% of that spend and uh it is is really in relation to property, whether it's the new stores or or the renewal.

It's all about how do we actually uh grow and augment our uh store network for growth.

Right. Okay.

Uh that's helpful. Then just on the on the new store openings, um as you say, it's been a bit softer in recent years and you are looking to accelerate that, which is good to see.

Um the 45 stores, I assume a lot of those have been in train for some time because these things don't happen overnight with the property planning approach, etc. Just wanting to understand like how confident you are in delivering those, let's call it 22 to 23 stores per annum for the next couple of years, given you've been doing roughly half that pace in terms of store openings over the past 3 years.

Or is there some chance of slippage given delays and all sorts of things with building and and approvals, etc.?

Yeah. Uh so in relation to those 45, Bryan, we are yeah, we we're very confident.

Uh we wouldn't have called it out, all right? Let me say I think we're very confident.

Look, it'll always be things like weather and things that could impact uh uh timings. Uh what we what we are confident on, firstly, is these stores uh, firstly, uh have been uh pre the uh merger uh law reform uh uh forms that the ACCC, they are approved.

Uh we have line of sight. We're doing uh more through our Coles Property Group uh as well.

Uh and we are in uh, constant dialogue and constant monitoring with our developers that are working through to the extent they're uh leased uh lease-developed stores. Uh Bryan, look, we feel very very confident of the uh 45 stores.

Uh but yeah, it'll always, yeah, there'll be other things like weather and things that can always can't always predict. Uh we're confident of the uh delivering the over the 2% net space growth over the next 2 years.

I think it's probably also just worth touching on in the context of this question uh around the ACCC merger regime. We have been submitting proposals through that regime since it came into place in January.

Uh there's obviously been a lot of media coverage around Kalgoorlie, which is the one store that has been denied through that process so far. Um, but we've actually received 10 approvals through the the process as well.

We are proactively and actively participating in that process and successfully having stores approved.

Excellent. Great to hear.

Thank you.

Oh, morning, guys. Um, my question's just on your tobacco growth rate.

Um, I suppose especially in July and August, cuz you're lapping some pretty um tough numbers, obviously, when the um the legislation changed. Can you maybe just give us an update on on what what's happening in the trading update on tobacco?

I know it's quite volatile, and you haven't given us a a sales ex-tobacco uh growth rate there.

Yeah. Sales have remained relatively consistent now in terms of the dollar number for several months.

That's really because we've we've cycled over that Q4 exit that we made of products last year related to the regulatory um change. You will have seen in the Q4 numbers, there's very little difference between the um all-of-store number and the ex-tobacco number.

That's what you should really expect going forward now.

Okay. Thanks.

Then just secondly, on the gross margins, I think that only went up 7 basis points in the second half. Um, I would have thought a bit more just with tobacco kind of coming down, especially in that in that third quarter.

Um, is the right way to read it like more price investment, or just some of the, I guess, higher costs coming through like um, uh fuel prices, etc., that that you couldn't kind of offset necessarily there?

Great question, Tom. Thank you for that.

Look, uh yeah, you're right. The uh gross margin, obviously, we we did grow gross margin in FY26 by 37 basis points.

That was across the year, but there was it was weighted to the first half. I think not not surprisingly, we pulled that out um at the previous and and earlier, that with the tobacco legislative changes, the tobacco, if you like, tailwind from uh in terms of gross margin rate was very much uh first-half related.

Uh but also what was in that first half as well uh is now very firmly the benefit that we got from the ADCs, right? The ADCs, as we know, have been strong benefit uh programs that are delivering uh exceptionally well against the business cases.

Uh again, were weighted in the first half than the second half. Uh there are lots of moving parts in gross margin.

Our strategic sourcing, which is an always-on program, very successful. Our SSI, uh very much uh, the $311 million.

I guess what's been different this year in SSI is traditionally, a third of uh SSI has been in gross margin and two-thirds in CODB. It was probably more like 20% in CODB this year rather than a third.

Um, and uh but we yeah, we see that uh potentially uh uh, maybe reverting back uh to a third two-thirds. Uh so lots of moving parts, but also Coles 360 in that as well.

Lots of moving parts. I think we that has allowed us to make the investments as well.

We have been investing uh as as we have as we have called out. I think going forward, tobacco tailwind, if you will, etc., uh and the ADCs now firmly in the base, um they are very very different uh uh going forward.

That being said, I really do encourage you to look at the P&L top to bottom. Uh and, things do move between GP and CODB.

Not that we've moved anything, but with a mix of sales uh now and and eComm growing very very strongly, and so what's really pleasing about the result here is the growth in the EBIT margin. The EBIT margin has has has grown strongly uh and you've seen our EBIT growth rate uh three times that of our sales growth.

Just to round out the answer, you specifically raised the fuel piece. Um we did call out in Q3 that we expected that to be $10 to $15 million of impact in H2.

Uh and it came in at the top end of that range, and that would have gone into the GP as well. Uh

Tom, just in case I did not uh Just in case I've said it differently, what we said was this year, 20% of the SSI was in GP, 80% in CODB, just to be really clear. Historically, that's been 1/3 to 2/3.

Got it. Great.

Thanks very much, guys.

good morning, everyone. Thanks for taking my questions.

Um I've got one short-term question and one longer-term question. Um firstly, on the trading update, appreciate there's a lot of moving parts and you've given us some color on the cadence of sales through that period.

Do you think that exit run rate of something similar to the fourth quarter is indicative of the underlying growth in the business, or do you still think there is some ongoing drag from your competitor's collectible program due to pantry stocking, forward buying, etc.? Uh

it's a great question. Uh so the collectibles campaign really came to an end 10 days ago.

Uh it's I think at this stage probably a bit hard to say whether uh the full recovery has uh occurred in terms of it coming back up. I think in general, as we look ahead for sales for the year, we're um feeling very encouraged because of a number of factors.

The first is this new space that we've got um coming on will help to uh drive our top-line sales. Uh the second piece would be the strength that we saw in online through those first 8 weeks, um because really, it didn't miss a trick through that period.

That strength that we've got in both Uber and the Deliver More offer through the CFCs, uh we expect that both of those to be, have good contributors to to sales growth this year. Uh and then the third thing I'd say is probably where I came back to when I was talking about the the market.

Um, it is certainly feeling to us at the moment that uh many customers are choosing to eat more at home, and that is really supporting a a healthy growth rate in the uh in the grocery area. Uh and, very much that is led by volume, which is a a great place to be.

Our inflation actually at the moment is still running pretty low, uh and most of our sales growth is coming out of volume, which um is always where we want to be.

Okay. No, that's helpful.

Thank you. Um and then the second one is on implementation costs for the Victoria um ADC.

Um so you've called out $35 million of implementation costs in 2028. Um how should we, without giving numbers, how should we think about the evolution of that as it comes through the P&L?

Um will it follow a similar shape to what you reported with the first two ADCs, where it gets a little bit bigger um in the years after the first year before it moderates and then turns into a a tailwind for the P&L?

Michael, thank you thanks for the question. Look, uh it's probably a couple of things.

We've given you, obviously, the FY28 number uh today, um and as we did with the other two programs, we'll give you those numbers uh very much closer to uh yeah, in each 12 months' time a little bit. Uh there will be, post '28, there will be a step-up on the on the the $35 million, that will be fact.

Uh but I yeah, I won't give you that number uh today. Um, but as you're right, there will be some implementation costs.

They will then fall away as they have done with these sort of programs. Uh and that, cuz these these assets are really strong returning investments that we that we are making uh for the future.

Yep. Okay.

It sounds like if we use the the shape of the first the first two as a guide, that's probably sensible at this stage.

Michael, that's not really what I said. Uh yeah, I won't I won't I won't tell you how to model this, I've given you a number for FY28.

Uh, there will be a step-up in '29 uh as these things come on in '29, '30.

Yeah. Okay.

Thank you.

Good morning, uh Leah, Charlie, and team. Um just first one, you you touched on there on inflation.

It is interesting and and good for the consumer that we haven't seen much movement in that inflation figure despite, the volatility around Middle East. Can you just give some color on what you're seeing on the inflation backdrop?

I'll be a bit cheeky and try and sneak in a second part of that, which is, what do you expect in the outlook on your EDLP versus high-low mix?

Hi, Craig. It's Anna.

I might give you a bit of color on that cuz there is a lot going on in the inflationary number. Um, what I'd say headline level, it was broadly stable in the quarter, uh but there was a number of moving parts.

I would say, first of all, in the quarter, we received twice the number of CPIs we did versus Q4 last year. Fuel did account for the vast majority of those, but we saw additional pressure coming through from fertilizer, freight, shipping, packaging, and utilities, and labor.

There's a number of drivers behind that. Also some drivers at a category level.

We're continuing to see inflation coming out of livestock, and we've been seeing that for some time, as well as dairy. That includes across kind of what we're seeing in milk and cheese and some of the price in there.

Bakery was also impacted by the global disruption costs as well, alongside some of the fuel-related pressures. Those increases, we have seen offset by some very heavy deflation in produce as we cycled over the very tight supply and elevated pricing from last year, and that was particularly in soft veg, such as tomatoes.

We've also seen eggs moderate as we cycled over the avian flu shortages last year, as well. This has also been coupled with really strong promotional intensity across a number of categories in grocery, predominantly impulse and breakfast.

Coupled on top of that with continuing to invest in price competitiveness. You saw that reflected in some of the GP profit and that investment we expect to continue into the first half.

If I flip into looking forward, there is definitely some upward pressure on inflation, particularly as produce cycles out deflation, and more broadly, as our suppliers face the inflationary costs. We're also watching fuel, freight, and packaging, and the the impact from global costs coming through very tightly, as well as both poultry and eggs from the avian flu position.

There's a lot going on there. I expect livestock to remain elevated, and in meat, we have been absorbing some of those increases for some time now to really minimize the impact on customers, the full effect has not flowed through into our inflation number.

I would say the offset of that has been some vast sourcing programs we continue to work with suppliers to continue to achieve competitive terms, and identify more opportunities to invest for customers. We'll continue to invest really where it matters most to customers.

On balance, I do expect we are going to see inflation higher in the next 12 months than we have in the previous 12, although there is a number number of different variables and it will depend a little bit on the competitive environment that we find ourselves in.

Just that EDLP, like what's the future of that EDLP mix in in your business?

Sorry, say that again, Shaun. EDLP.

Just EDLP, the use of Down Down and other EDLP mechanics versus high-low.

I think look, we've been for some time, uh Craig, focused on promotions where it really matters, but coupling that with EDLP. We've seen really strong customer engagement through that.

Uh and we're doing it on a category-by-category basis, and actually, we have extended the number of categories over the last quarter that are on EDLP and we're seeing that work particularly well. Uh and importantly, the cust- the suppliers we have are on the journey with us around the right coverage uh and the right categories, and we're seeing that uh really drive benefits.

I can I expect that to continue, and we are still absolutely strategically committed to driving trusted pricing where it matters most for customers.

Charlie, just to clarify your CapEx comment earlier, the the $1.55 billion, yeah, I think you said that it's not going to stay at that elevated level. Uh it sounds like there's 2 years of extra store openings and extra renewals, and I don't know, I would have thought the renewal rate is more where it should be rather than elevated.

Uh so

Craig, let me let me let me break, as I did earlier, break down what that 1.55 is made up of. One of it is the $1.1 billion that we have been spending, which does include uh yeah, has included 71 renewals, for example, uh last uh last last year.

Uh that obviously is what let's call it almost like core CapEx, that it does it can uh it can flex uh down uh very very very clearly. Um on top of that $1.1 billion is the $300 million for relating to the Victorian ADC.

Um and as we've previously called out, FY27 and FY28 are really the core years for that uh program. Remember, the program is an $880 million program.

Uh we've spent $190 million today, uh 300 uh this year in FY27, and it'll be expect yeah, is '28 to also be a uh a strong CapEx year for for the ADCs. In relation to these very specific investments that we called out, both in terms of new stores and the uplift in renewals, um yeah, they are I've called those out.

They are very specific investments, not to be ongoing, uh uh and we've called them out for '27 and '28. A-

Thank you.

Morning, Leah and team. Um just around costs.

I'm just trying to understand how to think about the shape into fiscal '27. Specifically, you've done sort of second half cost out for SSI for $180 million bucks, which is obviously a big step-up on the first half.

Presumably, we can annualize some of that into fiscal '27. You've got this Coles Capability Center, which is taken below the line, which I presume a bunch of those benefits will come above the line through next year because there's redundancies, etc.

Is it conceivable that you could have pretty benign C to B growth similar to '26 into '27 based on these benefits? Um because it it feels like there's a a lot of cost that'll have to come out into '27 just based on second half run rate in SS and the Capability Center, which I think you said is additional to SSI.

Uh so so

let me let me let me uh take that, Ben. Thanks for the thanks for the question uh firstly.

One of the things, let me just go back to FY26. I think FY26 is a really good good year for us, obviously.

We took out $300 million for SSI, uh a really important program, which really assisted us in trying to keep CODB as a percentage of sales flat year-on-year. That's the target that we try and target as uh an ongoing go- going forward, a really important number, cuz obviously, that uh assists in delivering the right uh earnings outcome uh uh through that sort of environment.

More importantly, I I think we've been able to do that um with an ever-increasing uh eComm uh penetration uh rate, which is is is pleasing. I think in relation to the Coles Capa- And so, remember, the SSI program, what we do try and target is about $250 million, plus or minus, every year.

That's been really uh really the the focus of the program. Just to give you some numbers there, $876 million delivered uh over the last 3 years.

The previous 4 years, we delivered $1.047 billion through Smarter uh Smarter Selling. Uh and so we are on track to actually deliver over $1 billion through this through this program.

Obviously, we're not giving any guidance beyond this program in that regard. The Capability Center, just to be really clear on the Capability Center, uh we are for uh we are forecasting that the com- uh run rate will build to FY29 of delivering annualized benefits of $100 million a year.

Uh and in order to achieve that, there will be one-off implementation costs and establishment costs of $190 million. As we called out in our presentation, and in our release, it is our expectation that that 190 will be treated into significant items.

Is it So Charlie, just just to clarify, the the fact that the second half run rate, which is obviously a phenomenal number you guys have managed to do, $178 mil, we shouldn't necessarily think that that starts you off on a stronger run rate for SSI into '27? The Capability Center, that doesn't include redundancies, etc., for all the changes that have been announced more recently, that's part of SSI?

No, so the Capability Center implementation cost is the all-inclusive of establishing and will include elements of redundancy in that uh as well uh and our establishment costs. In relation uh to SSI, uh as we said, we target about $250 million uh uh dollars a year, plus or minus.

Uh in terms of what we delivered in the second half versus first half, there are programs that sometimes are uh, timing of those between first half and second half can vary. I wouldn't necessarily annualize a second half as an ongoing run rate or the first half as an ongoing run rate.

I think take my guidance that we typically are around $250 million a year, and it can vary between first half and second half depending on the the nature of the programs and projects that fall within that.

That's that's helpful. Thank you.

Maybe just one Leah, one more from from me. Just just sort of looking forward, if if you sort of look forward on a 3-year lens, and appreciate it's probably touch on at the Strategy Day as well, but what do you see Coles as?

Do Do you see Coles as just a supermarket at its core and there's a few ancillary like services around, or is there a view to expand beyond that? Obviously, we touched on Greencross, but you've closed Swaggle, which surprised me if you wanted to keep learning around these sort of categories.

Probably one of the few big retailers out there that doesn't have a marketplace capability. Obviously, you can do that in a low-CapEx type environment, or or capability.

Is it Is the focus just being the supermarket on a longer-term lens and then maybe the basement cellar is around it, or do you see yourself taking a bigger step looking at things like Greencross or leaning into marketplaces, these sort of areas on the longer-term lens?

I think the first point I'd make is we still still see a lot of growth in the supermarket space. You're seeing us today announce a set of initiatives that really helped to set us up to go and capture that.

Uh and it's fantastic to actually have a set of opportunities within the core business that does help us to drive that growth with good returns. Um so very pleased with that, and you can expect to see us continuing to do that uh as we as we move forward.

Uh however, I do think that, we will continue to look at are there adjacencies like that? Uh and I talked about that being close to the core.

You should think about that as that potentially is uh moving into other consumer segments, the pet specialty is the one that we've discussed today. It could also include um doing more vertical integration like what we've done with MilkCo and with Chef's Fresh, uh and even to some extent what we do with row around our meat processing facility.

If that helps us to bring to build uh strategic capabilities that enable us to grow own brand going forward, then that can make a lot of strategic sense for us. Uh and then I think the third area is probably in the digital space, and, are there uh non-organic uh options that we would have to build capability in that space overall.

All of that being said, we are very commercial. We are very financially disciplined around this stuff has to make sense from a value-creation for our shareholders.

Uh and if it doesn't, we won't go down the path. Um and as I said, with we're uh we've got lots of really good opportunities in the core right now to continue to grow uh and continue to deliver uh strong outcomes and and dividend growth for the shareholder base.

Fantastic. Thank you.

good morning, all. Um, unless I've missed it, I can't see any mention of stock loss or theft through any of the documentation, other than uh theft gets a little bit of a mention in the risk section of the annual report.

Um, certainly if you follow the if we watch the evening news, looks like Victoria is the the crime capital of Australia, and uh there's been lots of negative publicity on the the impact on supermarkets. What what update can you give us there?

Is, it looks like things are getting worse from an outsider's point of view, uh but what are you seeing uh internally, and is it making a difference? Uh

yes, thank you for the question. Uh you're right to say that it is a difficult operating environment in retail with regards to crime and loss, and that's not just a a Coles or a supermarket problem, I think we've all seen the media coverage.

Uh and as such, we stay very focused on the issue. Uh we've got a series of technology solutions that we've deployed over the last couple of years, and we continue to deploy those into stores where we can see a return and a requirement.

Uh and importantly, we stay very focused on making sure that our teams stay safe, because not only has there been a slight uptick in in loss from our perspective, the threatening situations that our team members have to face, which are completely unacceptable, they've also increased. Making sure that our team are protected and safe uh and fully supported is is super important.

The uptick that we're seeing at this stage isn't material in terms of our uh commercial performance. Um, what I wouldn't want you to think that that means that we are deprioritizing the issue.

It is uh one of the top three things we're certainly focused upon, and we will continue to not just work with our own team members and the retail industry, but also police and government. Pleasingly, state governments are starting to really progress with some of the uh policy changes that we need to tackle these repeat offenders.

Uh and so the sooner we can all work together to solve the problem, the better. It's um it's one we're definitely very, very focused on.

I'd probably just round that out, Richard, by saying that for FY26, um our total loss overall was essentially flat.

Um,

it didn't have the big uh shift or the big benefits coming through that we saw in '23 and and '24 and '25. Um, and really, we put that down to we now have a very stable technology solution that we're applying to the to the problem.

Um as Matt said, the fact there has been a bit of an uptick uh industry-wide as we've gone into the end of the financial year, but our aspiration for FY27 would be to hold the total loss rate flat again. Uh and we think in this market, that would be a would be a great result.

That's useful. Thanks, Leah.

Um, and then the last one, just you've obviously called out customer satisfaction scores improved across the five uh key metrics as you call as you sort of call them out. It's interesting that price um is but is clearly the weakest uptick that you've seen.

Yes, it's improved, but nowhere near to the extent of the others. How much of that um is a reflection you think of the negative publicity around the, the ACCC case, etc.?

Um, and any comment you can add in terms of the way that you were seeing your, relative um price competitiveness? Just to try and put that into context really, the the 110 bps on price, but obviously well over 200 on the other measures.

It's a it's an interesting observation, and I think it's probably very fair to say that just the amount of commentary that is that is out there does impact perception uh on that on that front. Uh and I also think that it's a very pertinent issue that households are struggling with every day in terms of of cost of living.

It's very very front of mind, and people have a high expectation uh around what you're going to deliver on the value front, um which given the environment, I think is fair. Uh I think I would definitely say that um we would say perception is half of the uh equation when you you talk about are you uh delivering appropriate value.

The other half of it is how are customers actually shopping, and what are you seeing from a sales perspective. Uh if you go back to the the volume growth that we've seen, and I'd sort of refer you to a 5.1% Supermarkets sales growth for the year versus a 1.2% inflation rate.

The remainder of that differential is largely volume. Uh that would say that we seem to be hitting the mark um more times than not.

Okay. That's helpful as well.

Thanks, Leah.

Good morning, and thank you for taking my question. AI was elevated as part of the strategy today, with opportunities outlined across customers, smart operations, and team productivity.

Would you elaborate further on those opportunities and point to which one you see the largest source of economic value over the next 2 to 3 years? Perhaps secondly, where you are already starting to see material benefits come through?

Thanks for the question, Nicole. Uh we have had uh AI use cases in the business for around a decade now.

Um the vast majority of those are either machine learning, predictive AI use cases or generative AI use cases. Uh and they have delivered uh substantial value to us.

A few examples that I'd probably call out would be the Smarter Forecasting system, uh which drives availability um uh as well as sort of sales matching for us to to store our our range uh system in another one. Our store-specific ranging tool, for example, is a is a machine learning tool, uh and that has delivered um substantial increases in in sales, but also gross margin outcomes for us as we've rolled that out and tailored stores uh in terms of their range, store by store.

Uh and then uh another example would actually be what we were just talking about with Richard on the on the theft front. Um a lot of the tools that we have used in terms of skip scan and uh bottom-of-the-trolley recognition, they are generative AI use cases, for example.

We have at-scale AI use cases that have delivered substantial value in the business. Now, that being said, um we're pretty excited about what comes uh next.

Uh the big difference that we're seeing now with the advent of Gen AI is just the pace of capability that you can access and where you can apply it. Um I might get Michael maybe to just touch really briefly on how we're thinking about it from a customer-facing perspective.

Certainly uh in our sort of core operations, we think there's a lot of opportunity in terms of doing system optimization end-to-end, particularly across the supply chain, uh where there is they're huge parts of our cost base, that if we're able to even get small benefits uh there, can actually result in quite substantial savings for us. Michael, did you want to talk a little bit about the the customer piece?

Very happy to, Leah. I think it's on a forward-looking basis, I think it's certainly one of our biggest opportunities from a product perspective.

Now, that being said, uh whilst we want to move towards that quickly, um we do have to balance that with the opportunities that sit across the rest of our product set to be able to improve the customer experience. I'll tell you why that's important, when we have our product teams working on enhancing the customer experience, which then drives more traffic, greater scale, better profitability within the eCommerce business.

We've currently got teams across about 20 different digital products where we have them working in squads. That's across everything from digital media to last-mile fulfillment to in-store digital experiences.

It's really across many different aspects of what our customer experience is. We continue to make really good progress in terms of enhancing that customer experience.

AI commerce is something that we see as a big opportunity. What we're focused on is making sure that we're able to get there before it becomes a really at-scale opportunity for customers.

We've got many different experiences that are currently in testing internally with product teams, um and we're going to be focused on releasing some of those across FY27, because we think it's a really important part of the offer going forward, but it's only one part of what the opportunity is for us to keep improving our customer experience.

Thank you.

hi, team. Thanks for taking my question.

Um just following up on Ben's question on SSI and and the earlier question on AI, um it looks like you'll very comfortably exceed the $1 billion for SSI and the 2 half run rate is very strong, and I know you've said not to annualize that. Has the evolution of AI capabilities throughout the term of that SSI program perhaps broadened the scope of potential efficiencies you can deliver, and has that had an impact on the stronger performance for SSI?

Look, we're we're we're obviously very excited about what AI can do with uh in various areas of the business, whether it's productivity, efficiency, and and what it what it what it can deliver. I I I do want to reiterate, Michael, I would not annualize what we are to see in the in in the second half.

It's not for us to say that we have a a cap on our SSI savings. Uh it's certainly not the discussion we have internally.

Our target is $250 million a year, and that's been an and an important uh uh sort of part of where we go, and it's been a successful formula. There will be programs and projects that go either side of a fiscal year or a financial year, um uh through that.

We're certainly always focused on delivering more um that that, uh as as well. In that regard, but we are excited about what AI could um uh help and unlock more opportunities to see.

As Leah pointed out, it's not a new phenomenon for us. We've been using all forms of AI now in the business for at least a decade, which it continued to generate better uh results for our customers, improved efficiency in in our business, and we'll continue to deploy those sort of tools going forward.

Okay. Thank you.

Then following up on Richard's question on price perception, you've you've obviously built some very strong capabilities in distribution and online, for which you deserve credit. In that context, do you think there's an opportunity to use that cost-leadership position to go harder on competitive positioning, as opposed to sort of reacting to um competitor activity, just noting that your relative margin position looks like it is quite strong relative to where it was a few years ago?

Thank you.

Thanks for the question, Michael. We are proactively investing.

We come into each year and each quarter with a plan around where we will put uh value investment, and we base that um on where we think we can have maximum impact uh from a customer perspective. We do have a very um active, and have done for many years, uh investment program uh in into price.

I I called out most recently, we've made some strong investments into our entry tier of our private label with Coles Simply, for example. Uh and so, that's an important part of what we do.

The other side of it is, we want to always ensure that we're competitive in the market every week. We're certainly seeing that uh with, AI, a topic of conversation today, the advent of AI tools has meant that customers are using those to compare prices more than they've ever done before, particularly in young families and pre-families, uh so the the younger part of our population.

Ensuring that we are competitive week in, week out for every set of offers that we have, that's really key for us. Some of that is proactive and some of that is reactive.

Great. Thanks very much.

Great. Thank you, everyone.

In summary, um we're very pleased with what we've delivered in FY26, with strength in our competitive position, with Supermarkets gaining market share, strong earnings growth, and further improvements in customer satisfaction. Our eCommerce business continued to scale profitably, with eComm sales growing by more than 26% and our CFCs achieving positive EBITDA.

At the same time, we've continued to focus on productivity, delivering $311 million of SSI benefits, which is helping us to invest in value for customers, while growing earnings ahead of sales. Importantly, we're entering FY27 with a strong platform.

The investments we've made over the past 3 years have materially strengthened our business, and our strong cash generation and balance sheet gives us the capacity to invest in this next phase of growth. We have a clear focus on expanding and renewing our store network, continuing to build our digital and technology capability, continuing the development of our Victorian ADCs, and improving the performance of Liquor.

Thank you, and I look forward to speaking to you again in only just a few short weeks for our first quarter results in October. Thank you.