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Highlights
- On 26 October 2022, Coles had released its quarterly sales results for Q1 FY23.
- Coles Group saw rise in its group sales revenue.
On 26 October 2022, the Australian retailing giant Coles Group Limited (ASX:COL) had released quarterly sales results for its Q1 FY23. As per the official report, Coles witnessed a 1.3% increase in its group sales revenue along with a 1.9% increase in gross retail sales.
The company reported three-year headline growth in the supermarkets, liquor, and express divisions of 13.8%, 15.2%, and 7.5%, respectively. Coles' comparable sales growth for the first quarter of FY23 was 2.1% for supermarkets, 4.1% for liquor, and 9.0% for express.
Meanwhile, shares of Coles were trading in the green and were up 0.368% at AU$16.330 at the time of writing (11:57 AM AEDT, 31 October 2022). On a YTD basis, Coles share price fell over 9%. The share price has fallen nearly 6% in the past year.
The company expressed concern about rising inflation in its results. Coles’ supermarket division recorded inflation of 7.1%, up from 4.3% in the fourth quarter.
A glance at Coles’ supermarket performance
Supermarkets
- Sales revenue was AU$8.8 billion for Q1 FY23, up 1.6% over the previous corresponding period.
- Comparable and gross retail sales have grown by 2.1% and 2.3%, respectively.
- eCommerce sales declined by 11.5% due to normalisation after COVID-19.
- Inflation rose to 7.1% from 4.3% last quarter.
- Supply volumes were impacted by floods, an indirect trigger to inflation.
Coles’ outlook on segment performances
- The company mentioned having strengthened sales, volumes, as well as transactions during Q1 FY23 because of new value campaigns for its consumers.
- Coles warned to witness cost price inflation in the second quarter due to the current quantity of supplier CPI requests.
- Besides this, Coles was also impacted by other rising costs, including the effects of higher fuel and logistics costs, pay and wage increases, and building costs on capital investment projects.
- In FY23, the group expects its depreciation and amortisation costs to exceed AU$1.7 billion, which reflects both the company's increasing technological investment and the higher depreciation of its Right of Use Lease assets.
Management Commentary
Talking about the quarterly results, Steven Cain, CEO, Coles, said:
Image Source: © 2022 Kalkine Media®
Data Source- Company announcement dated 26 October
