Here’s how Coles' (ASX:COL) shares are reacting to first quarter update

2 min read | October 26, 2022 12:46 PM AEDT | By Sonal Goyal

Here’s how Coles' (ASX:COL) shares are reacting to first quarter update — Image source: © Lucidwaters | Megapixl.com

Key highlights of results

Group sales revenue improved by 1.3% within a year, and in three years, it has grown by 13.7%. In three years, it has increased by 13.7%
Group gross retail sales grew by 1.9% to AU$10.2 billion.
Ninety-four exclusive liquor brand products and over 370 new Coles Own Brands were launched during the quarter.
Fuel and convenience businesses were sold to Viva Energy.
In the supermarket business segment, the company reported a 1.6% rise in sales revenue and a 2.3% growth in gross retail sales.
eCommerce sales dropped by 11.5% over the previous year.
The sales revenue in the liquor segment marked a fall of 4.3%, and gross retail sales also fell by the same percentage.
C-store sales revenue increased by 8.4%, with a 7.9% rise in gross retail sales.

Outlook

Coles informed the market that it expects a surge in cost-price inflation during the second quarter.

The company said that its businesses are affected by the inflationary cost pressure, and it includes the impact of increased fuel and logistics costs, constructions cost, and salary and wages. Coles continues to invest in transformation and technology across its liquor and supermarket business. The group expects depreciation and amortisation expenses to be around AU$1.7 billion in the full year 2023.

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