Coles Group (COL) - Strong showing

Coles Group Limited operates as a retailer in Australia through various supermarkets, which offers fresh food, groceries, general merchandise, and liquor.

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The company reported first-half FY25 earnings ahead of market expectations, underpinned by robust sales growth in its food and liquor operations, although the interim dividend fell just short of forecasts.

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The No.2 supermarket chain also flagged a positive start to the second half, with sales growth in the first seven weeks slightly ahead of that reported by larger rival Woolworths.

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Ord Minnett was impressed by the tight rein on costs and solid revenue growth that allowed Coles to deliver a strong margin performance, with the company outperforming Woolworths in recent periods. We maintain our Accumulate recommendation on Coles, although our target price increases to $21.00 from $19.50.

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