Coles Group's sales revenue increased almost six percent to $40.5 billion dollars in FY23, with Supermarkets sales revenue recording a 6.1 per cent jump. Coles said food price inflation dropped in 4Q to 5.8 per cent from a high of 7.4 per cent in 1H.
The increase in sales was mostly due to high prices but there was volume growth in 2H.
Coles Group CEO Leah Weckert said, “This past year we opened our first Automated Distribution Centre, achieved our target of $1 billion in benefits through our Smarter Selling program, divested our Coles Express business to allow greater focus on the core, opened or refreshed more than 300 stores and brought hundreds of exciting new products to market.”
Snapshot
- Total sales revenue from continuing operations up 5.9% to $40.5bn;
- EBITDA from continuing operations up of 3.8% to $3,382m;
- EBIT up 1.8% to $1,859m;
- adjusted EBITDA and EBIT growth from continuing operations of 5.3% to $3,465m and 4.5% to $1,942m;
- NPAT down 0.6% to $1,042m;
(EBITDA: Earnings Before Interest and Taxes Depreciation and Amortisation; EBIT: Earnings Before Interest and Taxes; NSR: Net Sales Revenue; NPAT: Net Profit After Tax)
Weckert said cost of living was the number one focus for customers and the company would continue to invest in providing value through ‘DROPPED & LOCKED’, everyday trusted pricing, weekly specials, Flybuys and its own 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.
“As the shift in home consumption occurs, they are looking to the supermarket to help them to do more with their budgets,” she said.
One issue raised by Weckert as an “increasing headwind” for Coles and other retailers was stock loss, due to elevated levels of organised retail crime and theft driven by cost-of-living pressures and food waste. This was up 20 per cent year-on-year.
Major project implementation operating expenditure of $58 million was incurred during the year in relation to the two ADCs and two automated Customer Fulfilment Centres (CFCs), up from $32 million in FY22. This was lower than previously forecast largely due to the delays in the construction and commissioning of the automated CFCs.
