AAP Finance

Coles Group says sales up, profit down in H1

By AAP Newswire

Feb 27, 2024

Coles Group says its sales were up but profit was down in the first half of 2023/24. -AAP Image

Coles Group says its sales were up but profit was down in the first half as higher interest rates took a toll on its financing costs.

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Coles' sales revenue from continuing operations rose 6.8 per cent to $22.2 billion in the 27 weeks to December 31, compared to the same period a year ago.

Supermarket sales were up 4.9 per cent to $19.8 billion while liquor sales grew 1.8 per cent to $2 billion.

But its profit from continuing operations fell 3.6 per cent to $616 million, as Coles' cost of financing rose 13.9 per cent to $213 million.

The costs reflect increased interest on lease liabilities associated with new leases and lease renewals.

A $600 million bond issuance during the period and higher interest rates on Coles' short-term revolving debt facilities also increased costs.

Coles said that supermarket prices increased three per cent in the second quarter of 2023/24.

Coles managing director and chief executive Leah Weckert told reporters that a number of changes had reduced store thefts, which had been an issue coming out of the pandemic.

The measures include better training, security at its entrances and exits and technological solutions, she added.