Major Australian supermarket chain Coles Group [ASX:COL] has revealed superior results for its latest quarterly report, the group sharing that it had reached total group sales revenue of $9.7 billion.
This was an improvement of 6.5% on the same time last year, the third quarter of fiscal 2022.
Coles said that it had reached $8.6 billion for revenue through its supermarkets, a climb of 7% on the prior period when COVID and floods had impacted the business cycle, yet the group warns supplier cost inflation is still expected to play its part.
Investors were not so taken with the COL outlook despite the results of the past quarter, hesitancy pulling at group’s stock value.
COL was trading for $18.39 earlier in the day, up 10% year-to-date, yet flat over the past 12 months within its sector and the market. Competitor Woolworths Group [ASX:WOW] has risen 16% this year:
Source: TradingView
Coles’ third quarter sales and details
Key local supermarket mega-chain Coles Group gave its third quarter sales report for 2023, and despite some promising results, investors did not feel comfortable with celebrating.
Total group sales revenue of $9.7 billion, which was an increase of 6.5% on the same period last year.
Supermarket sales revenue came out at $8.6 billion for the third quarter, having increased by 7.0% on the prior corresponding period.
Coles said this result came as the business cycled the impacts of COVID-19 (Omicron), floods in NSW and QLD, and flooding in SA.
These events had also led to logistics disruptions in WA and the NT.
The group’s gross retail sales of $8.9 billion had increased by 7.9%, and comparable sales had also grown by 6.5% on the prior corresponding period.
For the liquor business, Coles reported an increase of 2.6% in total group sales revenue, which had churned $801 million, with gross retail sales rising 2.4% to $803 million, comparable sales also grew by 1.5%.
Growth and improvement were evident in the wake of COVID and natural disaster impacts across Australia, and yet the group’s positive results came peppered with a warning that supplier input cost inflation may continue into the fourth quarter.
The group explained it continues cycling elevated levels of inflation from the prior corresponding period. However, Coles knows it is not quite out of the woods yet.
Soon-to-retire CEO of Coles Group Steven Cain stated:
‘At a time when cost of living pressures are mounting for many customers, the unique combination of Australia’s largest own brand range, hundreds of dropped and locked prices, thousands of weekly specials, free Masterchef cookware and Flybuys points has successfully driven sales and volume. Pleasingly we saw some modest improvement in supply chain availability however there is still more to do.
‘As I hand over the reins of this iconic, and now “essential” 109-year-old company to Leah Weckert on Monday, I am proud of what has been achieved for all our stakeholders over the last five years since demerger. Customers rate Coles as one of Australia’s most trusted brands, and our millions of direct and indirect shareholders have benefited from upper quartile returns.’
Source: COL
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