Coles overcomes floods, supply chain challenges to post $1bn profit

(Source: Bigstock)

Ongoing supply chain issues, flood disruptions and rising cost pressures failed to dent Coles’ full-year tax-paid profit which grew by 4.3 per cent to $1 billion.

Sales for the year ended June 26 rose by 2 per cent to $39.4 billion, although EBIT slipped by 0.2 per cent to $1.9 billion due to Covid-related expenses and “project implementation costs”.

E-commerce revenue remained strong throughout the year at double pre-pandemic levels and the company has expanded click-and-collect services into 740 of its stores.

The supermarket’s liquor division sales revenue increased 2.5 per cent to $3.6 billion while sales through its Express convenience-store division fell 5 per cent to $1.1 billion.

Serious flooding in the eastern states impacted stock delivery during the second half, however, supermarket revenue grew by 2.2 per cent to $34.6 billion compared to the previous year. Comparable store sales rose 2.6 per cent.

Steve Cain, Group CEO, said the last fiscal year was the third of its transformation strategy, and included “significant growth in our e-commerce operations, coupled with additional efficiencies from our Smarter Selling program”.

“We continue to focus on the delivery of our vision to be the most trusted retailer in Australia and grow long-term shareholder value.”

To combat inflationary pressures on households’ budgets, the retailer has “locked” the prices of 1168 products across its supermarket and online until January 31.

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