For the month of March, 2003

(Translation of registrant's name into English)

800 TOORAK ROAD, TOORONGA, VICTORIA, AUSTRALIA

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F      X      Form 40-F         

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Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):          

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this Form the registrant is also thereby furnishing the information to the Commission pusuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorised.

Date March 19, 2003

Coles Myer Ltd.

ABN 11 004 089 936

800 Toorak Road, Tooronga, 3146

Telephone (03) 9829 3111

Facsimile (03) 9829 6787

Postal Address: PO Box 2000, Glen Iris, 3146

News Release

• Underlying net profit after tax $272.4 million

Coles Myer Ltd (CML) today announced underlying net profit after tax of $272.4 million for the half year ended 26 January 2003, up 28.2% on prior year. Sales rose by 5.5% to $13.8 billion.

Coles Myer Chief Executive Officer, John Fletcher, said the underlying result reflected margin expansion by the Food & Liquor Group and Kmart/Officeworks, Myer Grace Bros and Target, despite a very competitive market.

"Our Food & Liquor business has delivered strong interim earnings growth. The turnaround at Kmart and Target also continues to accelerate, with both brands reporting substantial earnings improvement over the period. The recovery signs at Myer Grace Bros continue to be encouraging," Mr Fletcher said.

"The balance sheet was further strengthened over the period, featuring improved stock quality and lower gearing. Higher stock turns were achieved by all our major businesses, with Group inventory flat despite a 5.5% sales increase."

"Operating cashflow was $624 million, with free cashflow of $239 million.

"We have further improved our underlying cost of doing business (CODB) to sales ratio, with a reduction across the group of 12 basis points². This includes a substantial fall in the major non-food brands' combined CODB ratio of 93 basis points to 28.32%. After the significant savings achieved last year, well ahead of schedule, we are on track to exceed our $210 million target for FY2003. We continue to forecast total CODB savings of at least $300 million by the end of FY2004. Our focus on reducing costs has been on doing business better while we maintain our customer service levels in our brands.

"Our new heads of Supply Chain and IT are now identifying opportunities in their key functions. Our focus is on running our operations faster, cheaper and smarter," Mr Fletcher said.

"Overall this result demonstrates progress against strategy and the underlying strength of our business. We remain focussed on delighting our customers everyday, by offering the best service and the best range of the best products at the best prices," Mr Fletcher said.

CML is committed to the highest standards of international financial reporting. Therefore as foreshadowed in the 2002 Annual Report and at the Annual General Meeting, the Company has adopted new US guidance for the accounting of supplier promotional rebates. As a result of this policy change, a one-time, non-cash adjustment of $76.5 million was made to the interim earnings. Although not compulsory in Australia, we have introduced this policy because it represents global best practice. CML also complies with US standards in accordance with its listing on the NYSE.

After the one-off effect of the accounting policy changes, net profit after tax for the half year was $217.9 million.

Directors have declared a fully franked interim dividend of 13.5 cents per share.

The Food and Liquor Group (F&L), comprising Coles, Bi-Lo and Liquorland, reported a strong 11.3% increase in underlying retail EBIT over the half.

Alan Williams, Chief Operating Officer - Food and Liquor - said that despite intense competition, the business continued to expand margins and deliver double-digit profit growth in line with strategy.

"While we remain totally price competitive, our sales have been impacted by intensified fuel discounts in the market. Our continuing focus on efficiency initiatives, however, has underpinned and enabled strong growth in our bottom line," Mr Williams said.

The F&L underlying EBIT margin rose by 19 basis points to 3.51% over the half. This was driven by underlying gross margin expansion of 62 basis points to 24.52%, reflecting considerable gains in shrinkage and waste, reduced product cost and expansion of our high margin house-brands. These initiatives, together with reinvestment of the shareholder discount reduction, have enabled us to maintain and improve our price competitiveness for all customers.

While the lower than expected sales growth reduced our fixed cost leverage, our underlying cost base remains very competitive in the marketplace.

Mr Williams said that while the completion of a fuel offer was the Company's highest priority, the F&L Group was also focussed on a number of initiatives to further improve the customer offer and back office efficiencies. These included:

• Improved fresh offer with better quality, merchandising and service standards
• Reinforcement of Coles' and Bi-Lo's competitive price position:

• Expanding successful house-brands
• Consistently strong promotional offers
• Competitive everyday shelf pricing
• To be supported by new marketing program

• Raised customer service standards
• Continuing operational efficiencies - shrinkage, store administration, store fit-out costs

Mr Williams said the store expansion program was continuing to plan, with 17 new supermarkets opened during the half, in addition to 6 acquisitions. A further 21 openings were expected over the year.

Liquorland opened 32 new stores and two hotels in the half, with a further 27 stores to open in the second half. The Theo's acquisition in NSW would contribute a further 47 stores and four hotels in April 2003. Another 33 supermarkets and 5 liquor stores were refurbished during the first half.

"Our strong result is a direct reflection of the strategy we put in place last year to move Kmart to the leadership position in discount department store retailing," Kmart MD Hani Zayadi said.

"In line with strategy, significant margin improvement was driven by continued reduction in the cost of doing business and leveraging this against sales volume.

"Customers have responded positively to our offer of the best prices on wanted ranges and brands. We will continue to improve this offer and our store environment, underpinned by our 'Lowest price guarantee' and our 'Cutting the cost of living' marketing campaign.

"Kmart opened three new stores and three Garden Super Centres over the first six months, with a new Kmart store and Garden Super Centre scheduled to open in the second half," Mr Zayadi said.

Officeworks delivered another impressive performance. Officeworks MD Peter Scott said the business continued to strengthen its position as the number one choice for small businesses.

"Our margin expansion reflected strong sales growth, improved category mix and efficient business practices. The store rollout strategy is proceeding to plan, with the Officeworks network increasing by 4 stores over the half to 63 locations across Australia. A further 7 openings are expected in the second half. Our recent Viking acquisition, which included 7 Sands and McDougall stores, was completed on 3 January and is performing in line with expectations," Mr Scott said.

"MGB's performance reflects encouraging progress in our turnaround program," MGB MD Dawn Robertson said.

"While the sales result was in line with our expectations, given the temporary closure of the Bondi store and shareholder discount reduction, the quality of our sales has shown solid improvement.

"The underlying retail margin increased by 17 basis points to 2.23%, reflecting better planning and execution in our merchandise management and marketing program, and more efficient capital investment.

"The quality of our inventory continued to improve, with stock levels down 8% on last year following successful summer clearance activity. Importantly, stock-turn increased by a strong 9.4% to 3.5 times over the half (H1 2002 3.2 times).

"We are looking forward to an improved winter season, which has been launched under our new 'my store' marketing program. The season will feature further range enhancements across our apparel, cosmetics and home offers, including the recently released Basque and Urbane private womenswear brands, which are already receiving a very good customer response.

"Improvements in service quality and in-store environment have also continued, resulting in positive customer feedback.

"We are committed to our strategic positioning, as we enter the second half of the year in a much stronger position than 2002. As a result, MGB is expected to report a profit for the full year.

"Megamart produced another year of strong sales growth, with the opening of our new stores in Auburn (Sydney) and Narre Warren (Melbourne). Megamart is a key part of MGB's plan to expand its share of the growing furniture and electrical markets," Ms Robertson said.

"Target is clearly delivering on its strategy of on-trend, high quality ranges at very affordable prices. Customers have responded very well to our exciting offer, particularly in apparel and manchester, and the success of the '100% Happy' marketing campaign has exceeded our expectations," Mr Davis said.

"Target's underlying retail margin is the strongest in three years, having risen a substantial 176 basis points to 4.82%. Our merchandising improvements reflect better management of product cost and promotional program, combined with strong inventory control.

"Stock levels have fallen a further 8%, on top of the 26% reduction in H1 2002, and our stock-turn has increased from 3.3 times to 4.0 times.

"Our merchandise initiatives have been supported by much improved in-store execution. The stores are brighter, cleaner and better presented, improving the ease of shopping for our customers.

"While much has been achieved in Target's recovery program, we will continue to drive sales and margin growth through quickly identifying new merchandising trends, ongoing improvements to merchandise flow and cost efficiencies," Mr Davis said.

Following our agreement with Australia Post to provide pick, pack and delivery services for ColesOnline, we have recently strengthened our marketing activity for this business.

While the performance of the underlying businesses continues to improve, it is anticipated that costs will increase in the second half of FY2003 as we increase the marketing of the ColesOnline business.

• Additional costs associated with the Annual General Meeting in November 2002
• Restructuring and project costs

In the second half, unallocated and head office costs are expected to be in line with prior year. Excluding the one-off charges, full year unallocated and head office costs are anticipated to be mid-$90 million.

The total earnings contribution from property was in line with prior year at $18.5 million. Under fair value accounting, Sydney Central Plaza was revalued at period end, which was the key contributor to the increase in the property portfolio book value to $745 million (2002: $630 million).

Post balance date, Sydney Central Plaza was sold to Westfield Trust for $390 million. Due to the revaluation of the property, the profit on sale is not material. The funds will be used for the new store growth program, debt reduction and other strategic initiatives. Going forward, Property operating earnings will be reduced by the loss of income previously generated from the Sydney site, although interest savings from debt reduction will largely compensate.

Net borrowing costs decreased from $47.5m in 2002 to $39.0m, predominantly as a result of lower average net debt levels. In addition, Coles Myer received $1.5m (2002: $2.0m) in interest from the Coles Myer Employee Share Plan for the funding facility, first provided by the Company in 1994. Total interest income for the first half was $9.3m (2002: $7.9m).

Income tax expense on underlying profit of $126.0 million reflects an effective tax rate of 31.6%. The tax rate for the full year is expected to be in excess of 30%.

• Highest standards of reporting
• One-time adjustment
• Non-cash

As foreshadowed in our FY2002 annual accounts and the 2002 Annual General Meeting, CML has been reviewing its long established policy on the treatment of supplier promotional rebates. Under the previous policy, which many other Australian retailers continue to follow, the portion of supplier rebates that supported promotional activities was taken to income to offset product promotion costs, as and when the rebate became due and payable.

As anticipated, guidance was issued by the Emerging Issues Task Force in the US in late 2002 (EITF No. 02-16), whereby virtually all forms of rebates are treated as a reduction of inventory cost.

CML is committed to the highest standards of financial reporting and also complies with US requirements associated with its listing on the NYSE. In the absence of sufficient guidance from Australian GAAP or other international standards, CML is taking cognisance of the US guidance.

Under this guidance, virtually all forms of rebates (including those previously taken directly to income under earlier accounting guidance) are treated as a reduction in the cost of inventory, deferring recognition of the income to as and when the inventory is sold.

While US companies are allowed a transitional framework for implementation, Australian GAAP requires us to implement a policy change in full in the year in which the change is made. As a result, the following one-time, non-cash adjustments were made at the half year end to account for all stock on hand: inventory reduction of $76.5 million and a corresponding reduction in underlying profit before tax of $76.5 million.

If the policy change was applied to the movement between opening and closing inventory in the half year period, underlying profit before tax would have decreased by $13.0 million (H1 2002 equivalent $4.1 million).

Liquor licences are considered to retain their value indefinitely. To bring our policy in line with other retailers, CML is no longer amortising liquor licences. The carrying value of liquor licences will be reassessed each reporting period and adjusted accordingly if there is any diminution in value. The non-cash change of policy increased EBIT in the first half by $5.0 million.

Consistent with other logistics expenses, logistics administration expenses are now capitalised into stock and expensed as goods are sold. Previously, these costs were expensed as incurred. The one-time, non-cash change of policy increased EBIT in the first half by $4.5 million.

Net debt fell by 29% to $599.6 million, resulting in net debt to capital employed (net debt plus equity) down to 14.2% (2002: 20.4%). This arose from the improvement in trading results and working capital management.

Annualised ROI increased strongly to 16.0%, up from 12.8% in H1 2002.

Inventory was relatively flat, despite sales growth of 5.5%. This reflects higher stock turns and the continued improvement in the quality of the stock. In particular, total stock turn for the combined Kmart, Officeworks, MGB and Target businesses has increased by a substantial 12.5% since January 2002, from 3.2 times to 3.6 times.

Working Capital increased at a lower rate than sales, with a 3% increase to $1,241m.

Operating cash flow fell by $28 million to $624 million, primarily reflecting the lower improvement in working capital change relative to last year, when a $307 million improvement was generated by the targeted GM&A stock reductions. Notwithstanding this, improved operating earnings, lower interest and further working capital improvements contributed strongly.

Total capital expenditure of $385 million (2002: $272 million) reflects our strengthened new store program and the acquisition of Viking by Officeworks. As a result, free cash flow to was reduced to $239 million (2002: $380 million). Excluding acquisitions, underlying capital expenditure of approximately $800 million is expected for the full year.

Mr Fletcher reaffirmed the Group earnings guidance for FY2003 of underlying net profit after tax of $425 - 435 million.

"Group sales in the first 5 weeks of Q3 2003 rose by 5.6%, in line with expectations," Mr Fletcher said.

"We confirm our full year expectations of mid single digit sales growth for the Food & Liquor business, pending the commencement of a petrol offer for our customers. Finalising our petrol offer remains our highest priority and we are making good progress in this regard.

"We expect competition in all our markets to remain intense," Mr Fletcher said.

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