Coles shares drop more than 5% after profit miss
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More news: Shares in Coles Group fell more than 5% to $16.31 in early trading after the supermarket giant missed analyst estimates for annual profit and declared an unchanged final dividend. It posted a 4.8% lift in profit to $1.09 billion, with revenue up 5.2%.
Higher prices help Coles lift full-year profit to $1.1b
The news: Coles Group has lifted its annual profit on the back of higher prices at its supermarket and liquor stores network.
The numbers: Net profit for the year to 30 June rose 4.8% to $1.098 billion, slightly below analyst expectations. Group revenue was up 5.9% to $40.6 billion, with supermarkets sales rising 6.1% but liquor sales revenue broadly flat. The company declared a final dividend of 30 cents a share, unchanged from a year earlier.
The context: The growth in supermarket sales was largely driven by price rises, with price inflation for the year at 6.7%. However, Coles said prices had moderated in the second alf and analysts widely expect this trend to continue in coming quarters. The group has also focused on cost control and divested its Coles Express business recently.
What they said: “Cost of living is the number one focus for our customers right now and we continue to invest in providing value through ‘DROPPED & LOCKED’, everyday trusted pricing, weekly specials, Flybuys and our exclusive brand portfolio. These initiatives are resonating with customers and we remain well positioned to grow in the current environment as more customers choose to eat at home,” Coles Group CEO, Leah Weckert said.
The source: ASX announcement
