Coles reports 3.1% rise in quarterly revenue despite sliding liquor sales
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The news: Supermarket giant Coles reported third-quarter sales revenue of $10.7 billion, marking a 3.1% rise year on year, as growth in its supermarkets business helped offset a slide in liquor sales.
The numbers: Coles reported supermarket sales revenue of $9.8 billion, up 4% year on year. Excluding tobacco, sales revenue increased 5.7%.
Its liquor division saw a 3.9% fall to $781 million.
The group said e-commerce sales grew 24.8% year on year, with penetration increasing to 13.6%.
The context: Coles said supermarket sales revenue growth has remained “broadly in line” with the third quarter during the early part of Q4. It has seen more requests for cost price increases from suppliers in recent weeks, as well as higher costs within its own operations, particularly in fuel, freight and packaging.
Sales in the company’s liquor segment continue to be impacted by the “step down in consumer sentiment observed in March”, the company said.
What they said: “Achieving consistent sales momentum for the period over multiple years demonstrates our commitment to remaining focused on long term outcomes whilst successfully navigating short term volatility in market conditions and supply chains,” said Coles CEO Leah Weckert.
The source: ASX
