Coles Group has reported a slight increase in revenue of 1 per cent to $20.6 billion despite sales disruptions in supermarkets and liquor segments through its first half due to the impact of Covid-19. Profit slipped 2 per cent to $549 million.
On a two-year comparable basis – which compares the latest half with the corresponding period pre-Covid, sales in supermarkets grew by 8.6 per cent, in liquor by 18.2 per cent and through the Express business by 1.1 per cent.
Year on year, Coles’ liquor sales rose by 2.7 per cent to $1.9 billion driven by strong online sales and the opening of on-premise retail stores. Spirits, ready-to-drink (RTD) and wines performed strongly at the category level with a shift seen towards gin and seltzer categories.
Coles Express petrol stations saw a decrease in sales revenue by 8.5 per cent to $578 million due to poor traffic volumes. Reduced traffic on the roads impacted fuel commissions and convenience stores’ sales revenue during the first half.
Earnings decreased by 4.4 per cent to $975 million due to Covid disruptions.
The group also incurred Covid costs in its supermarket segment during this period largely due to team member isolation requirements, rapid antigen testing at distribution centres and additional door greeters to ensure QR code compliance.
Inventory increased by 13.3 per cent to $2.38 billion driven by the seasonal build of inventory associated with the Christmas and New Year trading period.
