Its shares in early trading on Tuesday were on track for their best day in more than five years, rising 8.9 per cent to an all-time high of $22.58.
The gains came after the supermarket giant reported sales of $44.3 billion for the 52 weeks to June 29, up 3.6 per cent from Coles' prior financial year after adjusting for the fact it was a week longer.
Supermarket sales grew 4.3 per cent to $40 billion - a 5.7 per cent increase when excluding tobacco products - while sales from its Liquorland stores were up 1.1 per cent to $3.7 billion.
Coles turned a $1.1 billion profit, up 2.4 per cent from 2024/25.
Chief executive Leah Weckert said the company had maintained a consistent focus on its strategic priorities during the financial year.
"There is no doubt that value has remained front of mind for our customers, and we have continued to work hard on providing a compelling offer with quality products across all price points," she told analysts.
The "Great Value, Hands Down" seasonal value campaigns focused on fewer, deeper promotions with an expanded range of products, Coles said.
Customers had also responded favourably to its Curtis Stone Glassware and Harry Potter Magical Discs campaign.
Coles' investment in its new state-of-the-art customer fulfilment centres in Sydney and Melbourne and an automated distribution centre in western Sydney were also paying dividends, although Coles incurred $103 million in dual-running costs as those warehouses get up and running.
Coles said its e-commerce supermarket sales rose 24.4 per cent to make up 11.2 per cent of all grocery sales, as the new customer fulfilment centres allowed it to offer next-day delivery to all customers in Sydney and Melbourne.
Coles' momentum has continued in the new financial year, with supermarket sales rising 4.7 per cent in the first eight weeks of 2025/26.
Excluding tobacco products, sales are up 7.0 per cent.
Liquor sales have been flat so far in the new financial year, with the overall market subdued.
RBC Capital Markets analyst Michael Toner said Coles had announced positive results, with strong growth in supermarkets partially offset by a weaker performance for liquor.
Farhan Badami, eToro market analyst, described Coles' earnings as "steady but unspectacular," with profit coming in just shy of expectations but the supermarket division delivering a "real positive" with its sales growth.
Coles posted a final dividend of 32 cents, taking the total for the year to 69 cents, up from 68 cents last year.
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