Coles reported underlying EBIT up 5.7% for FY24 on a 52-week basis. EBIT growth in Supermarkets was much stronger in the second-half but Liquor earnings fell significantly. Coles had a step-down in sales trends in 2H24 and these are likely to continue. The gross margin gains from lower stock loss in FY25e should underpin a flat EPS year with better EPS growth in FY26e as the benefits of the Witron and Ocado capex projects comes to fruition.