Coles Q1 revenue up 2.9% as supermarket sales rise
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The news: Coles Group has lifted its first quarter revenue on the back of a solid rise in supermarket sales and announced investment in a new automated distribution centre.
The numbers: The supermarket giant said revenue for the 13 weeks to 29 September was up 2.9% to $10.55 billion.
Its flagship supermarkets business reported a 3.5% lift in revenue for the first quarter to $9.51 billion, while liquor sales dropped 4.4% to $851 million.
The context: The retailer said cost-of-living pressures remained a challenge for many of its customers, although overall supermarkets inflation slowed to 1.5% during the quarter.
Sales growth was supported by winter and spring value campaigns, promotional activity and strong e-commerce growth. This was partially offset by challenges in the supply of eggs due to the impacts of Avian flu.
The group said revenue for its own Coles branded items increased 4.5%to $3.3 billion on the back for solid volume growth.
Separately, Coles announced it would invest $880 million to develop a new ambient automated distribution centre in Truganina in Victoria. The centre will be developed in partnership with supply chain automation group Witron, which has already built other robotics centres for the retailer in recent years. The project is expected to start in FY25 and take up to five years to complete.
The sources: ASX announcement, ASX announcement
