Sydney - Thursday - September 21: (RWE Aust Business News)...

Sydney - Thursday - September 21: (RWE Aust Business News) -
Coles Myer Ltd (ASX:CML) reported a net profit of $1.16 billion for the
year to July 30 2006, up 82.4 per cent compared with $637.8m profit in
the prior year.
Revenue was $34.31 billion, up 3.7 per cent.
Underlying retail EBIT (excluding Myer and Megamart) was $1.21bn
against $1.11bn previously.
A dividend of 22.5c, fully franked, with record date October 20,
brings the total dividend for the year to 42c.

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Outlook
The dividend policy is unchanged, with the expected payout ratio
to be maintained at around 65pc of full year earnings.
Coles said the outlook was positive, although the retail market
is expected to continue to be competitive.
The comparative sales trend in food and liquor has continued to
improve during the first half of the current quarter, in line with
expectations.
For the FY07 year, the company anticipates headline net profit
(NPAT) of $787 million and EPS of approximately 66c per share.
Retail EBIT growth is expected to be in excess of 8pc from
continuing businesses.
After adjusting for one off implementation costs and annualising
full year benefits, annualised NPAT is expected to be approximately
$970m.
For the FY08 year, NPAT is expected to be approximately $1.06bn
and EPS is expected to be approximately 90c per share. After adjusting
for one off implementation costs and annualising full year benefits,
annualised NPAT is expected to be approximately $1.25bn or approximately
$1 per share.

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Result
Underlying net profit was $787m, up 13.9pc.
"This result brings to reality the aspirational earnings goal we
set five years ago and is a very satisfying achievement for the team,"
chief executive John Fletcher said.
"Since we began our turnaround strategy, the group has doubled
profitability, earnings per share and return on investment."
Mr Fletcher said the sale of Myer during the year produced an
excellent result and enabled the company to simplify and put greater
strategic, financial and management focus on the everyday needs
businesses.
"The company had made significant progress in transforming the
supply chain and IT systems during the year," he said.
Proceeds from the sale of Myer totalled $1.4bn.
The Food and Liquor business lifted earnings by 8.5pc, excluding
transformation costs and benefits, while the non-food businesses
increased EBIT by 11.7pc, excluding Myer and Megamart.

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Segments
Earnings on a comparative 52-week basis for Food and Liquor were
$785.9m against $724.6m, Coles Express $30m against $21.6m, Kmart $76m
against $78.3m, Officeworks $74.9m against $65.5m, Target $248.3m against
$213.6m.