Own Coles shares? Here's your preview for the FY24 result

This is what the business may have achieved in FY24.

| More on:
Woman customer and grocery shopping cart in supermarket store, retail outlet or mall shop. Female shopper pushing trolley in shelf aisle to buy discount groceries, sale goods and brand offers.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Coles Group Ltd (ASX: COL) shares could come under the microscope soon, with the S&P/ASX 200 Index (ASX: XJO) stock scheduled to release its results next week.

The business is expected to report on 27 August 2024, making it one of the last major ASX businesses to release its FY24 financials.

The focus has been on supermarket inflation in the last 12 months. But with inflation moderating, sales growth needs to be driven by food retailers delivering on their plans.

For Coles share investors hoping for some early insights into the company's financials, let's look at what some leading analysts are expecting from the company.

Projections for FY24 result

Analysts at Goldman Sachs have estimates for Coles' upcoming report, and I'll run through some of them.

Food division sales are expected to increase 5.9% year over year to $38.9 billion, liquor division sales are expected to rise 1.6% to $3.67 billion, while total sales are forecast to increase by 7% to $43.3 billion.

In terms of expectations for the fourth quarter of FY24, Goldman Sachs is expecting comparable sales growth of 2.9% for Coles food and negative 2.6% for Coles' liquor. In the second half of FY24, Coles is expected to show 7.4% sales growth.

FY24 total gross profit is projected to increase by 6.8% to $11.27 billion, and total earnings before interest, tax, depreciation and amortisation (EBITDA) is forecast to grow 6.5% to $3.6 billion.

Looking at earnings before interest and tax (EBIT), Goldman Sachs projects food EBIT to rise 9% to $1.92 billion, and total EBIT is forecast to increase 6.8% to $1.99 billion. The EBIT margin is expected to be stable at 4.6%. In the second half of FY24, Coles' EBIT is expected to grow 15.2%.

The broker suggests statutory net profit after tax (NPAT) is forecast to slightly decrease by around 2% to $1.08 billion. Profit is normally the key statistic for investors looking at the Coles share price. Goldman Sachs is expecting earnings per share (EPS) of 80.6 cents, which could then fund an annual dividend per share of 64.5 cents.

At the current Coles share price, that would translate into a fully franked dividend yield and a grossed-up dividend yield of 5%.

Other comments

Goldman Sachs said the regulatory review headwind on supermarkets is "benign to date" with the latest Senate inquiry recommendations "largely expected by the market and the adoption of the mandatory code of conduct with suppliers to not materially impact current ways of working."

The broker also said that concerns about profit margins are "overdone", as its analysis and channel checks suggest supermarket topline growth of around 3%, with "ample levers" for gross profit margin expansion.

Coles share price snapshot

The chart below shows that the Coles share price has gone up 14% since the start of 2024.

Created with Highcharts 11.4.3Coles Group PriceZoom1M3M6MYTD1Y5Y10YALL31 Dec 202319 Aug 2024Zoom ▾Jan '24Feb '24Mar '24Apr '24May '24Jun '24Jul '24Aug '24Jan '24Jan '24Mar '24Mar '24May '24May '24Jul '24Jul '24www.fool.com.au

Should you invest $1,000 in Coles Group Limited right now?

Before you buy Coles Group Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Coles Group Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Consumer Staples & Discretionary Shares

Supermarket trolley with groceries going up the stairs with a rising red arrow.
Consumer Staples & Discretionary Shares

Woolworths shares have soared 18% since March. Here's how much upside Macquarie still expects

Having raced higher since March’s multi-year lows, just how high can Woolworths shares go?

Read more »

A customer and shopper at the checkout of a supermarket.
Consumer Staples & Discretionary Shares

Broker watch: Are Woolworths shares a buy?

Do analysts think this supermarket giant would be a good pick for investors? Let's find out.

Read more »

Supermarket trolley with groceries on top of a red pointing arrow.
Consumer Staples & Discretionary Shares

Up 31% in a year, just how much more upside does Macquarie tip for Coles shares?

Can Coles shares smash the ASX 200 returns again in the year ahead?

Read more »

A customer and shopper at the checkout of a supermarket.
Consumer Staples & Discretionary Shares

Woolworths shares storm higher on strong Q3 update

The supermarket giant outperformed expectations during the quarter.

Read more »

A woman holds up hands to compare two things with question marks above her hands.
Consumer Staples & Discretionary Shares

Compare the pair: Accent Group vs JB Hi-Fi shares

Which is a better option out of these two consumer discretionary shares. 

Read more »

person sitting at outdoor table looking at mobile phone and credit card.
Consumer Staples & Discretionary Shares

If I could only own 1 ASX retailer for the next 5 years it would be this one

This stock could be a great long term pick according to one leading broker.

Read more »

A couple in a supermarket laugh as they discuss which fruits and vegetables to buy
Consumer Staples & Discretionary Shares

Coles share price drops on Q3 update

Let's see how the supermarket giant performed during the three months.

Read more »

Business man with a cigar in his mouth counting US dollars.
Consumer Staples & Discretionary Shares

Both Labor and the Coalition to crackdown on illicit tobacco trade, which ASX stocks could benefit?

Could a tobacco crackdown benefit these stocks?

Read more »