Strong growth in Q1 FY22 for Coles Group was driven by major ecommerce gains – 48 per cent in supermarkets and 72 per cent for liquor. The numbers were welcomed as the company recoups $75 million in COVID-19 costs.
The Delta variant COVID-19 was felt as 20,000 team members had to isolate across its New South Wales and Victorian operations.
Coles CEO Steven Cain said the challenges presented by the pandemic were starting to ease.
“I would like to thank the Coles team, our suppliers and community partners who have done an extraordinary job in this 18-month with COVID-19 to ensure continuity of supply as an essential service,” sain Cain.
The group expects capital expenditure to be between $1.2-$1.4 billion in FY22.
Supermarket performance
Q1 revenue for supermarkets was $8.6 billion, up 1.8 per cent on the prior corresponding period (pcp). The group’s 48 per cent increase in supermarket ecommerce growth equated to nine per cent sales.
in Q1 FY22
The company added an additional 17 home delivery stores across New South Wales as Coles Online more than doubled its capacity in the state. A further eight home delivery stores were added to Victoria and existing Click & Collect stores increased their capacity across both states.
The group’s own brand products recorded sales of $2.8 billion, an increase of 6 per cent compared to Q1 FY21, with more than 350 own brand products launched in the quarter.
Liquor
The 72 per cent ecommerce growth in liquor sales delivered a 4.5 per cent increase in penetration, up one per cent on the last quarter.
The large increase was mainly due to on-premises closures, with spirits and RTDs continuing to be the key performers of the category, the group said.
