Coles'shares shot up as much as 6.5 per cent in early trading,and closed at their highest level since the business demerged from Wesfarmers and listed on the ASX as an separate company in November.
Chief executive Steve Cain said on Tuesday that its other financial priorities were to deliver a dividend payout ratio of 80 to 90 per cent underlying earnings,and to maintain its market share,if not grow it.
"There is quite a challenge out there to maintain market share and grow profitability,"Mr Cain said.
"Maintaining,or growing our share ... would be a terrific result given the competition that we face."
Coles has been losing customers to a resurgent Woolworths,which has taken the lead in sales growth since it launched a turnaround strategy two years ago. And its earnings fell in the past two years after growing constantly between 2009 and 2016.
Chris Tynan,a fund manager at DNR Capital,said the market had been bracing for a spending blowout or a lower dividend payout ratio target,which had not eventuated.